UMass Amherst Generates $2.9 Billion in Economic Impact for Massachusetts

Commonwealth’s Flagship Campus Delivers a 7-to-1 Return on State Investment

Source: UMass News and Media

The University of Massachusetts Amherst generated a record $2.9 billion in economic activity for the commonwealth and supported more than 13,200 external jobs during the 2022 fiscal year, according to a new report from the UMass Donahue Institute.

The report finds that for every dollar invested by the state, UMass Amherst delivered $7 in economic activity. This includes campus operating expenditures, major construction projects and spending by students, faculty and staff. Much of this spending flows beyond campus to a variety of local businesses and suppliers. Overall, the five campuses of the UMass system were responsible for a record $8.3 billion in economic activity and supported nearly 40,000 external jobs in the commonwealth during the 2022 fiscal year. 

“This report makes clear that UMass Amherst is a major driver of the economy and workforce in western Massachusetts and beyond,” said Chancellor Javier Reyes.

The Donahue Institute report finds that the state invested $421.8 million in the flagship campus to yield the $2.9 billion economic impact for the 12 months ending June 30, 2022. This figure includes about $140 million spent on major construction projects.

UMass Amherst employed 6,094 people (excluding student workers) during the analysis period. When combined with the external jobs that the university supported, the campus was responsible for more than 19,300 jobs in the commonwealth.

“The scope of the operations on our five nationally ranked research universities has a profound impact on the Massachusetts economy overall and every region of the Commonwealth,” UMass President Marty Meehan said. “As the state’s top workforce development engine, which educates more students than any other college or university in Massachusetts, and as one of the state’s three largest research universities, the university’s economic contribution touches every community.”

“Year after year, Massachusetts colleges and universities draw tens of thousands of students to our state, many of whom stay beyond graduation to build their careers and fuel our economy,” said Massachusetts Secretary of Economic Development Yvonne Hao. “Institutions like UMass have made Massachusetts a global leader in higher ed while also contributing to our state’s excellence in just about every sector – from life sciences and technology to finance and advanced manufacturing. We’re grateful for UMass’s contributions to Massachusetts’ economic growth.”  

More than 330,000 UMass alumni live in the commonwealth, contributing skills and knowledge to the nation’s leading innovation economy; purchasing goods and services from Massachusetts businesses; and paying local and state taxes.