Higher education is an important part of any regional economy because it contributes to a highly skilled labor force. However, institutions of higher education do not just play an ancillary role in economic development. In many communities, colleges and universities are integral components of the local economy. Because of this, local and state decision makers need to know how employment changes in higher education affect the local and regional economy. This report will assist in planning for changes in higher education employment, should they arise.
In 2000, there were 8,851 people employed in private and public higher educational institutions in central Missouri; and 3,286 people employed in hospitals affiliated with these institutions. Taken together, this direct impact of 12,137 jobs created an additional 10,303 ancillary jobs in Missouri's economy - for a total impact of 22,440 jobs statewide. This impact accounted for 0.4% of Missouri's gross state product (GSP).
As expected, the majority of jobs dependent on higher education in central Missouri were located in the central Region. The direct impact of 12,137 higher education jobs in central Missouri created an additional 7,003 ancillary jobs - for a total impact of 19,140 jobs in the central Region. The impact accounted for 5.2% of the central Missouri's gross regional product (GRP).
Any loss of higher education jobs in central Missouri has long-term negative economic impacts. For instance, the loss of 100 higher education jobs in 2000 would result in the loss of 60 ancillary jobs in the central Region - for a total loss of 160 jobs and $5.17 million in wages across the region. By 2010, the region's economy continues to decline, with the loss of 165 jobs and $6.11 million in wages.
The loss of higher education jobs in central Missouri has long-term negative economic impacts for the state's economy. The loss of 100 higher education jobs in 2000 in the central Region would result in the loss of 87 ancillary jobs in the state economy - for a total loss of 187 jobs and $6.05 million in wages across Missouri. By 2010, there is very little recover in the state economy, with the loss of 184 jobs and $6.78 million in wages.
Two other regions are also moderately affected by the loss of 100 higher education jobs in central Missouri. The St. Louis Metro Region would experience a loss of 7 jobs and $286,100 wages in 2000; and Kansas City would experience a loss of 6 jobs and $199,300 wages in 2000. However, by 2010 both regions regain almost half of these job losses, indicating a moderate recovery.
The significant of this report is that it allows local and regional decision makers to assess employment changes in their community. Using the information contained within, various scenarios can be computed to approximate the economic impact of changes in higher education employment. An application of this type of analysis is applied to the loss of 60 jobs at University of Missouri Health Care in Boone County.
