The Economic Impact of the University of Minnesota Duluth on Minnesota’s Arrowhead Region and Douglas County, Wisconsin

Abstract

The University of Minnesota Duluth provides a significant positive impact on the region’s economy through its annual operations, construction, and student and visitor spending. In 2019 and 2020, the total impact of all UMD expenditures and those related to its students and visitors was estimated to have supported more than 4,100 jobs and contributed to more than $581 million in local production. During the study period, the university budgeted approximately $260 million in operational expenses, which included $188 million in compensation and benefits for nearly 1,800 employees. In addition, the institution spent more than $8 million annually on construction projects. The spending from the university’s operational expenditures resulted in nearly 3,000 jobs and almost $436 million of additional output, while the construction spending led to a total of 82 jobs and over $11 million of additional output throughout the region. Student and visitor spending provides a significant impact to the local economy as well. It is estimated that, in 2019 and 2020, students attending UMD spent an estimated $88 million, while visitors coming from out of the study region to see those students spent another approximately $10 million. Combined, this spending produced more than 1,100 jobs and increased output for the region by nearly $135 million. In FY2019 and FY2020, UMD received, on average, $50.6 million in state funding while providing more than $581 million in total output. In other words, for every dollar of state support, UMD provided roughly $11.50 in total economic impact to the Arrowhead Region in 2019 and 2020.