Statewide economic impact of the University of Minnesota grows to $11.5 billion annually

For every $1 invested in the University of Minnesota, the return-on-investment to the state is $16.75, according to a new independent analysis of the University’s statewide economic impact. 

National research firm Tripp Umbach conducted the Economic and Community Impact study, which measured the direct and indirect impact of University of Minnesota activities for fiscal year 2024, to include its role in job creation, economic growth and community development for the state. The University’s overall economic impact in 2024 was $11.5 billion, including supporting more than 89,000 jobs and generating $676 million in state taxes. Findings from the full report will be presented to the Board of Regents on Friday, May 9.   

“For more than 170 years, the University of Minnesota has been a powerful economic engine for our state, driving progress and prosperity across all 87 counties,” said President Rebecca Cunningham. “From the world-class education that prepares our future leaders and workforce, to the innovations and discoveries that help solve society’s greatest challenges, our campuses are designed to positively impact all Minnesotans. As we chart a bold, new path forward, we will continue to support rural prosperity, strengthen partnerships with industry, and ensure our academic programs remain aligned with evolving workforce needs.”

Findings include the economic impact of each of the University’s research and health enterprises, Extension activities and that of alumni — 62% of whom stay in Minnesota after graduation. The report also showcases how each University of Minnesota campus is a major economic driver for its region, including the number of jobs it supports in construction, retail and hospitality and other sectors as well as direct employment by the University.

Report highlights:

• Crookston: $130.5 million economic impact, supporting 1,272 jobs (288 direct) and generating $7.7 million in state taxes
• Duluth: $869.9 million economic impact, supporting 7,686 jobs (1,744 direct) and generating $51.3 million in state taxes
• Morris: $165.3 million economic impact, supporting 1,689 jobs (360 direct) and generating $9.8 million in state taxes
• Rochester: $89.9 million economic impact, supporting 585 jobs (103 direct) and generating $5.3 million in state taxes
• Twin Cities: $10.2 billion economic impact, supporting 77,964 jobs (30,266 direct) and generating $601.9 million in state taxes
• At the forefront of patient care and focused on training the next generation of health professionals, the University of Minnesota’s health enterprise generated $2.6 billion in economic impact and supported more than 17,000 jobs.
• The University’s world-class research enterprise generated $3.9 billion in economic impact, supporting more than 25,000 jobs focused on discovery and innovation.
• Five distinct campuses, but one University of Minnesota degree – the system’s 366,000+ alumni generated $65.9 billion in economic impact in 2024.

The Board is also expected to:

• Recognize distinguished students, faculty and staff, who will be introduced and honored by the Board at 4 p.m. Thursday.
• Discuss the impact of the funding landscape on the University’s research portfolio with Shashank Priya, vice president for Research and Innovation, and David Hagen, director of the Office of Cost Analysis.
• Receive an update on student career preparation and outcomes from Jill Kolodzne, director of the Career Center on the Duluth campus and Sara Newberg, executive director of Career Services Administration on the Twin Cities campus.
• Review the annual workforce and human resources strategy report with Vice President for Human Resources Ken Horstman.
• Discuss undergraduate health science programs across the state with Chancellors Lori Carrell, Mary Holz-Clause, Charles Nies and Janet Ericksen and Deans Connie Delaney, Keith Mays and Jakub Tolar.
• Receive the annual report on Native American Affairs with Karen Diver, senior advisor to the President and head of the Office of Native American Affairs.
• Discuss progress toward the University’s next systemwide strategic plan with steering committee co-chairs Andrew Alleyne, dean of the College of Science and Engineering, and Chancellor Nies.
• Review amendments to Board of Regents Policies: Academic Misconduct and Conflict Resolution Process for Employees.

Beginning May 2025, all in-person meeting attendees at the McNamara Alumni Center are required to go through security screening. All visitors are encouraged to allow ample time for the screening process. A livestream of the meeting and recordings of previous meetings are available at youtube.com/UMNRegents.

The Board’s Virtual Forum accepts audio, video and written input, which is shared directly with Regents and included in the Board’s public materials. The public is encouraged to visit the Virtual Forum to submit their comments. 

For more information, including future meeting times, visit regents.umn.edu.