Economic impact, benefits of TRU on region and province can’t be ignored

“Catalyst” is a word often used to describe the effect universities have on society.

It’s a fitting term, as post-secondary institutions have profound impacts, often indirectly, helping people change the world around us.

Universities play a multifaceted role in society. They are centres of learning that offer individuals the chance to develop skills, both personally and professionally. They foster social cohesion by bringing together people from diverse backgrounds.

Academics use the term “social capital” to refer to the skills and knowledge of how to get things done in the community. Universities build the individual social capital of graduates who learn professions, skills, and practical experience.

They also build the bonding capital that strengthens community ties and the bridging capital that helps people connect across different communities. Universities do this through research, teaching, the arts, and intellectual exchange. They serve as hubs of innovation, community engagement, and social progress. This includes driving our economies.

I want to focus today on the economic aspect of university impact. Thompson Rivers University recently received an economic impact report from Lightcast, an independent consultant. The report, which was shared with TRU’s board of governors last week, describes many ways in which TRU contributes to the economies of Kamloops, the wider region and British Columbia.

TRU’s economic footprint is significant. In the fiscal year of 2023-24 alone, TRU’s operations, construction and student spending, together with the enhanced productivity of its alumni, generated $2.2 billion for the B.C. economy, according to the consultant’s report.

TRU’s day-to-day operations (payroll, benefits and expenditures) injected $242.6 million into the economy. That impact underscores how essential the university is as a major employer and as a purchaser of local goods and services.

The university’s infrastructure projects, from new buildings to facility upgrades, generated $21.1 million in additional income in B.C. As TRU expands, its construction activities create steady employment opportunities and drive demand for local construction services and materials.

The economic impact of TRU’s student population is equally impressive. Student spending added $159.9 million to the economy. These students not only rent housing and buy food but also contribute to the local economy through retail, entertainment, and transportation spending.

One of TRU’s most enduring contributions to the economy is its alumni, who generate significant added income as they enter and succeed in the workforce. In 2023-24, TRU’s alumni contributed $1.8 billion to the B.C. economy due to their increased qualifications and skills.

TRU graduates work across multiple sectors, using their skills to drive productivity and innovation. Their success in the workforce translates into increased tax revenues and reduced social service costs, benefiting the broader society.

TRU’s commitment to attracting and educating students, particularly Indigenous and international students, helps diversify and strengthen the provincial workforce. Notably, 87 per cent of Indigenous students and 62 per cent of international students remained in B.C. after graduation, contributing both economically and socially. Many of those graduates remain in and around Kamloops, but others are further afield, across our wider region and, indeed, across the whole province.

The financial investments made by students, taxpayers, and society in TRU yield impressive returns. In 2023-24, TRU students invested $168.5 million in their education, an investment expected to result in $586.2 million in future earnings over their lifetimes. This return not only benefits the individual students but also contributes to increased productivity in the workforce and higher tax revenues for the province.

From the taxpayer's perspective, the $96.5 million invested in TRU by provincial operating grants yields $496.7 million in returns, yielding a benefit-cost ratio of 5.1 and a 38.3 per cent annual return.

From a societal perspective, the returns are even more compelling. TRU’s operations generate $3.8 billion in total returns over the full course of the students’ working lives, with a benefit-cost ratio of 7.2. That means that for every dollar invested in TRU by society, the return across time is $7.20 in economic and social benefits.

In simpler terms, the total benefits of supporting TRU (increased income for graduates, social savings such as reduced healthcare costs, lower crime rates, and increased productivity) are 7.2 times greater than the cost of funding the university.

Beyond direct and indirect economic impacts, TRU also enhances the livability and desirability of Kamloops and every community where a graduate settles.

TRU’s international students alone added $90.4 million to the economy in 2023-24, while Indigenous students contributed $5.2 million. These populations enrich the cultural makeup of Kamloops, making it a more diverse, appealing place to live, study, and work.

The presence of a university such as TRU boosts the reputation of the B.C. Interior as a place where people can build successful careers and enjoy a high quality of life. The ability to retain graduates helps ensure a steady influx of educated, skilled professionals into the local workforce. That strengthens the long-term economic prospects of the region and helps ensure sustainable growth for years to come.

Seeing the numbers, it’s impossible to deny the catalytic effect a university has on society. It’s hard to imagine community and societal growth or progress without the influence of institutions such as TRU.

The full economic impact report is on our website.

Brett Fairbairn is the president and vice-chancellor of Thompson Rivers University. He can be reached at [email protected].