Plymouth’s universities pump £320million into the city’s economy and support 5,630 jobs, new research shows.
A study by Hatch Regeneris for the University and College Union (UCU) has found that between them the University of Plymouth, the University of St Mark and St John (Marjon) and Plymouth College of Art directly employ 3,020 people and support another 2,610 jobs across the city through supply chains and the expenditure of staff and students.
Plymouth is one of 25 cities analysed as part of a study into the economic contribution of universities.
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The research found that between the three institutions the city’s economy was bolstered by £320million in 2019 through gross value added (GVA).
GVA is the key measure of economic contribution, capturing the total value of goods and services produced locally by the universities through their supply chains and the money spent by employees and students.
The figures show how the universities are among the single largest contributors to the city economy, and comes just months after Henry Hutchins, chief executive of Clever Student Lets, said the coronavirus pandemic and an expected global economic slowdown could lead to due to a predicted collapse in the number of foreign students coming to the city this autumn.
In December 2019 it was revealed that The University of Plymouth had made an annual loss of nearly £13million and axed 400 staff due to declining student numbers.
Recent YouGov polling for UCU has also highlighted how people recognised the importance of universities on jobs and the economy.
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Two-thirds (66%) said they feared that there would be a negative impact on the local economy if student numbers dropped as a result of the COVID-19 crisis. While three-quarters (75%) feared a negative impact should a local university go bust.
A third of those in work (33%) said the local university was important to their own job. While over two-fifths (42%) said they knew someone who studied or worked at a local university, or whose employment depended at least in part on the university.
UCU general secretary Jo Grady said: “This review shows how significant Plymouth’s universities are to the local economy.
“Universities are vitally important to our society, but their important role in the local economy is often overlooked.
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“This study shows that they have a huge impact in creating local jobs, supporting local businesses, and attracting people and organisations to the area.
“The Westminster government needs to come up with a comprehensive financial support package to ensure that no university collapses and that local economies do not lose valuable jobs.”
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A report from UCU in April warned of a £2.5billion loss in income for universities from a drop in student numbers, which would result in a £6billion hit for the economy.
While a report from the Institute for Fiscal Studies earlier in July predicted that the pandemic would leave some universities struggling to survive.
In June UCU launched its Fund The Future campaign which calls on the Government to provide emergency support for universities to cover income lost due to the pandemic.