September 16, 2024
Report: HBCUs Have $16.5B Impact On U.S. Economy
HBCUs also create more than 136,000 jobs.
Despite chronic underfunding, violent threats against them, and a struggle to recover from the global pandemic, historically Black colleges and universities (HBCUs) continue to thrive and have a multibillion-dollar impact on their surrounding communities, states, and the nation, according to a new report released recently by UNCF (United Negro College Fund).
This 2024 HBCU Economic Impact Report, titled “Transforming Futures: The Economic Engines of HBCUs,” was commissioned by UNCF’s Frederick D. Patterson Research Institute (FDPRI) and is a comprehensive, data-driven analysis highlighting the contributions of the nation’s 101 HBCUs make to their students, local communities, and the nation as a whole. It shows that HBCUs have a $16.5 billion impact on the United States, creating more than 136,000 jobs and generating $146 billion in lifetime earnings for the collective 51,000 HBCU graduates of 2021.
“This report reaffirms what we have always known about the resilience of HBCUs:…HBCUs continue to do more with less—not only in preparing the next generation of leaders but also in contributing to our nation’s economic impact,” said Dr. Michael L. Lomax, president and CEO of UNCF, the nation’s leading minority education advocacy organization.
In addition to the comprehensive report, a website has been launched where users can explore state-specific data and insights for individual HCBUs, allowing users to explore the local impact HBCUs play in communities across the nation. For example, North Carolina’s 10 HBCUs create $1.8 billion in economic impact, produce more than 16,000 jobs, and generate more than $22 billion in lifetime earnings by the graduating class of 2021.
Dr. Nadrea R. Njoku, FDPRI assistant vice president, said this new report “represents the latest chapter in a longitudinal research initiative” by FDPRI.
“By leveraging robust methodology and extensive data, we highlight how HBCUs continue to be critical drivers of economic growth and social mobility,” Dr. Njoku said. “This report not only underscores the substantial economic benefits generated by HBCUs but also contextualizes the broader challenges they have faced over the past three years, including the far-reaching impacts of the COVID-19 pandemic and the threats of violence that have been levied against many of these institutions.”
Key findings in the 2024 HBCU Economic Impact Report Include:
- Collectively, 136,048 jobs exist as a result of HBCUs.
- If they were a company, the nation’s HBCUs would place in the top 50 of the nation’s Fortune 500 companies in job creation.
- Public HBCUs account for $10.8 billion (or 65%) of the output impact. Private, nonprofit HBCUs account for $5.7 billion (or 35%) of the output impact.
- On average, for each job created on campus, 1.5 off-campus jobs exist because of spending related to the institution.
- Each $1 million initially spent by an HBCU and its students creates 12 jobs
- HBCUs are far more accessible to students and more successful at moving students from the bottom 40% of a country’s income distribution to the top 60%, signaling social mobility.
- The 51,269 HBCU graduates in the class of 2021 can expect work-life earnings of $146 billion, which is 57% ($53 billion) more than the $93 billion they could expect without their degrees or certificates.
Call to Action
According to UNCF, the 2024 HBCU Economic Impact Report also signals a call to action to secure federal and state funding for these historic institutions and an urgent push for voter mobilization. A year ago, the U.S. Secretaries of Agriculture and Education sent a letter to 16 governors citing historic underfunding of HBCUs, resulting in roughly $13 billion in missed funding.
“At this critical moment, with a crucial election on the horizon, we all must immediately actualize our commitment to these cornerstone institutions,” Dr. Lomax said.
UNCF will leverage the new report’s findings to raise awareness “about the critical role of HBCUs ahead of Election Day, and the need for elected officials to commit to strengthening HBCU infrastructure, safety and student life,” UNCF said in a statement. Highlighting the economic and social contributions of these institutions is an effort to “inspire voters to support policies and send letters to elected leaders at the state and federal level in support of equitable funding and resources for HBCUs, ensuring their continued impact on communities and the nation.”
“As we move forward, it is imperative that we leverage this data to galvanize our communities and demand the necessary support from our policymakers by voting for HBCUs,” said Lodriguez Murray, UNCF senior vice president, public policy and government affairs. “We urge every supporter to make their voices heard, to advocate for the equitable funding our HBCUs deserve, and to ensure that these institutions can continue to thrive and contribute to America’s future.”
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