SPEAKIN’ OUT NEWS (SOURCE: 2024 HBCU Economic Impact Report from the UNCF (United Negro College Fund)
Alabama A&M University, Drake State Community & Technical College, and Oakwood University are pillars of economic growth in Alabama.
A new study titled Transforming Futures: The Economic Engine of HBCUs has shed light on the powerful role that Historically Black Colleges and Universities (HBCUs) play in Alabama’s economy. The study reaffirms that institutions like Alabama A&M University, Oakwood University, and J.F. Drake State Community and Technical College are not only academic pillars but also engines of economic development. Collectively, these institutions contribute billions of dollars in total economic impact, create thousands of jobs, and enhance the earning potential of their graduates.
Alabama A&M University: A $279.2 Million Economic Powerhouse
According to the study, Alabama A&M University generates a total economic impact of $279.2 million for local and regional economies. Through the spending of the university’s faculty, employees, students, and its operational activities, a ripple effect has emerged, stimulating job creation and economic growth. The university supports 2,472 jobs, including 918 on-campus positions and an additional 1,554 off-campus jobs fueled by Alabama A&M’s financial activities. Each $1 million spent by the university generates approximately 9 new jobs, further establishing the institution’s importance to the local economy.
The lifetime earnings of Alabama A&M’s 2021 graduates are estimated at $2.4 billion, with each graduate potentially earning an additional $1 million over their lifetime due to their degree.
Oakwood University: Economic Contributions of $92.6 Million
Oakwood University has also emerged as a significant contributor to the economic landscape, with a total economic impact of $92.6 million. The institution’s spending fosters 839 jobs, with 480 of these in the off-campus sector. Oakwood’s economic footprint extends beyond its campus, with each dollar spent generating an additional $1.26 in spending within the local economy. Graduates of Oakwood University can expect to earn $822.6 million in total lifetime earnings, which is 70% more than they would without a degree.
J.F. Drake State Community and Technical College: A Vital Economic Player
J.F. Drake State Community and Technical College, though smaller in scale, still plays a critical role in Alabama’s economy. The college generates $21.1 million in economic impact and supports 216 jobs. Each $1 million spent by Drake State and its students leads to the creation of 12 jobs, reflecting the efficiency of the college’s contribution to the local workforce.
The 2021 graduates of Drake State are projected to earn a collective $501.2 million over their lifetime, a 20% increase compared to those without a college credential.
The Statewide Impact of Alabama HBCUs
The ongoing study, Empowering Futures: The Economic Impact of HBCUs, is part of a long-term project conducted by the United Negro College Fund’s (UNCF) Frederick D. Patterson Research Institute (FDPRI). This research highlights the significant role that Historically Black Colleges and Universities (HBCUs) play in driving economic growth across the nation.
In Alabama, HBCUs continue to serve as critical economic engines, supporting a wide range of businesses and services while boosting economic activity both on and off campus. These institutions not only create job opportunities but also foster community growth and contribute to a more skilled and ambitious workforce, thanks to the graduates they produce.
Total Economic Impact: $1.4 Billion
HBCUs in Alabama contribute $1.4 billion to the local and regional economy. This figure includes direct spending on faculty, staff, academic programs, and campus operations, as well as student spending. It also takes into account the ripple effects of these expenditures.
For every dollar spent by HBCUs and their students, $1.20 is generated in local and regional economic spending, making HBCU-related financial activity a vital part of efforts to create a strong and diverse economy.
Employment Impact:
13,434 Jobs
HBCUs in Alabama are responsible for creating 13,434 jobs, with 5,542 of those being on-campus positions and 7,892 created off-campus through related spending.
Each on-campus job leads to the creation of an additional 1.4 public- and private-sector jobs off-campus.
For every $1 million spent by HBCUs and their students, 11 jobs are generated in the community.
Alabama’s HBCUs continue to serve as invaluable contributors to both economic development and the success of their students. Their influence extends beyond campuses, enriching communities and shaping the future of the state’s workforce.
