BIRMINGHAM, Ala. – Alabama’s community colleges generated $8.1 billion for the state’s economy last year, accounting for 3% of Alabama’s total gross product, according to a report from international labor analytics firm Lightcast.
“This is equivalent to supporting 114,043 jobs, which means that one in every 26 jobs in Alabama exists because of the Alabama Community College System,” ACCS Chief Workforce Development Officer Barry May said during a presentation to the Board of Trustees at Wednesday’s meeting in Montgomery.
The study, which analyzed data from the 2023 and 2024 academic and fiscal years, measured the system’s impact on job creation, workforce development and return on investment for all stakeholders, including students, taxpayers and the state.
“The findings of the study reaffirm the vital role that ACCS plays in Alabama’s economic growth and in workforce development. This study proves that Alabama Community College is not just an educational system, it’s an economic engine,” May said.
Education directly influences earnings, the report found.
“Alabamians with an associate degree earn about $9,200 more annually than those that only earn a high school diploma,” May said.
According to Lightcast, the average associate degree graduate earns $43,100 at mid-career, compared to $33,900 for someone with only a high school diploma. Those with bachelor’s degrees earned $59,600 at the same career stage.
“For every dollar a student invests, they receive $5.6 in lifetime earnings,” May said. “This is important to note that this is significantly higher than a 30-year average annual stock market return of 10.1%. It’s a great investment.”
Taxpayers benefit, too.
“For every dollar of public funding, the state gets back $1.20 in tax revenue and savings,” he noted.
“Altogether, this produces a benefit-cost ratio of 6.5, meaning that for every dollar invested in ACCS, the Alabama economy and society gain $6.50 in benefit.”
Graduates are the system’s biggest economic contributors.
“Our largest contributor to the total impact was our alumni impact, which resulted in $6.9 billion, which is equivalent to 96,200 jobs in the state,” May said.
Calling the report’s findings “tremendous,” May said, “We would like to shout this from the rooftops of how we are impacting our state and our state economy and the people in our state.”
The full report is available at www.accs.edu/impact.