Studies show national impact of colleges, ACC’s contributions to provincial economy

An economic impact study released yesterday by Colleges and Institutes Canada (CICan) measured the national contribution of colleges and institutes, and the people they have trained, at over $190 billion in added income to Canada’s economy in 2014-15.

“Undoubtedly, this report illustrates the tremendous value colleges have coast to coast and the role they play in the economic health of our country,” said Mark Frison, ACC president and CICan board member.

A similar study on Assiniboine Community College’s economic impact shows a contribution of more than $613 million every year to Manitoba’s economy.

For every dollar of public money invested in ACC, there is a cumulative return of $1.90 to the government over the students’ working lives in the form of higher tax receipts and public sector savings. Provincial taxpayers receive an internal rate of return of 10.1 per cent on their investment in the college.

ACC graduates also see a big return on their investment, with the average two-year diploma completer seeing an increase in earnings of $11,700 each year compared to someone with a high school diploma. Over a working lifetime, the increase in these earnings amounts to $386,100 in higher income.

“We know that 94 per cent of our most recent graduates have jobs within nine months of graduation and they’re making on average more than $45,000 a year,” said Frison. “With 93 per cent of them choosing to live and work in Manitoba, those investments are staying here in our communities.”

The study released by CICan also notes that for every dollar spent on tuition and associated costs, graduates earn on average $3.80 in lifetime earnings.

Both the CICan and ACC economic impact studies were completed by Emsi (Economic Modelling Specialists International), a leading provider of economic modelling specialized in higher education and workforce development.

Colleges and Institutes Canada is the national and international voice of Canada’s publicly supported colleges, institutes and polytechnics.