Higher Education: America’s 10th Top Export Injects Over $40 Billion into U.S. Economy

International Students Drive Economic Growth, Supporting Jobs and Local Communities Nationwide

As the new academic year commences, U.S. colleges and universities are welcoming millions of students, including approximately 1 million from abroad. These international students are not only pursuing their academic dreams but also significantly boosting the U.S. economy. According to recent data, the influx of international students injects over $40 billion annually into the economy and supports more than 368,000 jobs across the country.

Higher education has emerged as America’s 10th top export, according to the U.S. Bureau of Economic Analysis. Although this classification may seem unusual, it reflects the financial resources that international students bring into the country. Their spending goes far beyond tuition, encompassing housing, food, and other living expenses, and is approaching an all-time high.

The students primarily hail from countries such as China, India, and South Korea, but they also represent 221 countries and territories worldwide, including smaller nations like Tuvalu. In cities with a strong academic presence, such as Boston, the economic impact is especially pronounced. Home to over 50 colleges and universities, Boston hosts more than 60,000 international students, contributing approximately $2.7 billion to the region’s economy.

Philadelphia also ranks among the top U.S. destinations for international students, with nearly 17,000 expected to enroll in fall 2024 at institutions like the University of Pennsylvania and the Curtis Institute of Music. The influx of these students significantly bolsters the local economy.

While prestigious private universities attract many international students, the bulk of them attend state universities and colleges. Last year, 32 state institutions enrolled over 240,000 international students, generating nearly $1.6 billion and supporting 16,900 jobs. Arizona State University, the University of Illinois Urbana-Champaign, and the University of California, Berkeley, are among the top public institutions leading this trend. Expanding this to include the top 10 public universities, four of which are University of California campuses, the numbers rise to $4.5 billion in economic contribution and nearly 47,900 jobs supported.

The impact of international students isn’t limited to large cities and institutions. Smaller towns, like Mankato, Minnesota, also benefit significantly. The Minnesota State University campus there welcomed around 1,700 international students in the 2022 academic year, contributing $44.9 million to the local economy and supporting 190 jobs.

Community colleges, despite a decline in international enrollment, continue to attract thousands of students from abroad. In 2023, nearly 53,600 international students attended community colleges, mainly from China, Vietnam, and Japan, generating about $1.5 billion and supporting 6,620 jobs, particularly in states like Texas, California, and Florida.

As the academic year begins, the presence of international students across the U.S. underscores the vital role of higher education in driving economic growth, creating jobs, and enriching local communities.