A new analysis by labor market analytics firm Lightcast reveals that the University of Illinois Chicago contributed $10.6 billion to the state’s economy during fiscal year 2023. This amount represents roughly 1.1% of Illinois’s total gross state product and helped sustain nearly 97,000 jobs—equivalent to one out of every 85 positions in the state being linked to UIC’s operations or its student population.
Chancellor Marie Lynn Miranda emphasized UIC’s role as a central institution in Chicago, driving innovation through advanced research while also playing a crucial part in healthcare delivery, employment generation, and community involvement. She noted that students benefit from strong upward mobility and go on to contribute their expertise across key industries and neighborhoods throughout Illinois.
The economic assessment aggregates multiple factors, including university expenditures on operations, construction, hospital services, and research. Additional contributors include entrepreneurial ventures tied to UIC, spending by visitors, student consumption, volunteer efforts, and the long-term productivity of alumni.
Alumni-related economic contributions made up over half of the total impact, amounting to an estimated $6.8 billion. This figure reflects the higher lifetime earnings of UIC graduates compared to individuals with only a high school diploma, as well as their broader economic participation. On average, a UIC bachelor’s degree holder earns about $32,300 more annually than a peer with just a high school education.
The University of Illinois Hospital & Clinics (UI Health) contributed $1.6 billion to the state’s economy through its operations. Meanwhile, funding allocated to research activities generated $442.5 million in additional income and supported more than 4,000 jobs across Illinois.
UIC’s role in fostering innovation is further demonstrated by its startup ecosystem. In fiscal year 2023, Illinois-based companies affiliated with UIC added $357.7 million to the state’s economy—the highest contribution among all institutions in the University of Illinois System.
Beyond direct economic influence, the study evaluated returns on investment for students, taxpayers, and society:
For students, every dollar invested in a UIC education yields $5.30 in increased lifetime earnings, translating to an annual return rate of 19.2%.
Taxpayers receive approximately $3 in economic benefit for every dollar spent on educating UIC students over their working lives. This equates to an 11.4% annual return, driven by higher future tax revenues and reduced public spending on social programs due to improved lifestyle outcomes.
For the broader public, each dollar invested in UIC generates $5.50 in societal benefits during graduates’ careers. Over their working lives, Illinois is projected to gain $18.2 billion in additional state revenue from the $3.6 billion invested by state residents in UIC during fiscal year 2023.
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UIC delivers $10.6B economic impact on Illinois, study finds
The University of Illinois Chicago added $10.6 billion to the Illinois economy during fiscal year 2023, according to a new study from labor market analytics firm Lightcast.
The study finds UIC’s total economic impact equaled approximately 1.1% of Illinois’s total gross state product and supported almost 97,000 jobs. That means one of every 85 jobs in the state was tied to the activities of UIC and its students.
“As an anchor institution in the heart of Chicago, UIC is fueling our state’s innovation economy through world-class research, while also serving as a major driver of health care, jobs and community engagement,” said UIC Chancellor Marie Lynn Miranda. “Our students experience strong upward social mobility and, in turn, contribute their talents to the industries vital to Illinois and to the many vibrant communities they call home.”
The economic impact analysis combines results from several categories, including spending by the university on operations, construction, hospital and research. Other impact categories include UIC entrepreneurial activities, visitor spending, student spending, volunteer contributions and productivity of UIC graduates.
The alum segment accounts for more than half of UIC’s overall economic impact, with an estimated $6.8 billion based on higher incomes earned compared to those without a college degree and their contributions to the economy as members of the Illinois workforce. The average UIC bachelor’s degree graduate will earn approximately $32,300 more annually than a high school graduate.
Spending by the University of Illinois Hospital & Clinics, or UI Health, generated $1.6 billion in added income for the state’s economy.
UIC’s expenditures to support its research activities generated $442.5 million in added income for the Illinois economy, which is equivalent to supporting over 4,000 jobs.
The university’s environment for fostering innovation and startup companies is evidenced by Lightcast’s measurement of UIC’s entrepreneurial impact. In fiscal year 2023, Illinois-based startup companies related to UIC added $357.7 million in income to the state’s economy, more than any other university in the U of I System.
In addition to highlighting UIC’s positive impact on the state’s economy, the study appraised the return on investment UIC generates for students, taxpayers and society:
Students. Every dollar students invest in their UIC education gains them $5.30 in higher lifetime earnings. The corresponding annual rate of return is 19.2%.
Taxpayers. Taxpayers receive an average of $3 in economic return over the course of UIC students’ working lives for every tax dollar spent educating students at UIC. This represents an 11.4% annual rate of return for taxpayers, due to higher tax revenues and savings associated with lifestyle changes that reduce social program costs that otherwise would draw from public resources.
Society. For every dollar the public invests in UIC, Illinois will gain an average of $5.50 in benefits during the students’ working lives. The state of Illinois will receive an estimated $18.2 billion in added state revenue over the course of the students’ working lives for the $3.6 billion that people in Illinois invested in UIC during fiscal year 2023.