Study places UMD economic impact at more than $500 million

A study has found that the University of Minnesota Duluth contributed more than $500 million to the local economy last year and helped support several thousand jobs beyond the campus.

The Bureau of Business and Economic Research at UMD’s Labovitz School of Business and Economics unveiled the findings on Tuesday, covering seven counties in Northeastern Minnesota as well as Douglas County in Wisconsin.

In 2014, UMD budgeted $248 million in operational expenses, the school reported — including $137 million in compensation and benefits for its nearly 2,000 employees. The university also spent $13 million on construction projects.

“These are the direct expenses that UMD has, but when you look at how they ripple through the local economy, it actually multiplies to create more jobs and more spending in the region,” Monica Haynes, director of the BBER, said in a news release.

The study found that UMD’s operational spending had a ripple effect of about 3,200 jobs and nearly $423 million in additional economic output. The construction spending help create about 100 additional jobs and more than $21 million in additional economic output.

The study also found that spending by students and campus visitors supported an estimated 700 jobs and $77 million in economic output.

In total, it adds up to about 4,000 jobs and about $521 million in economic output.

A similar study was completed in 2010, and a comparison of the two studies shows that UMD’s regional economic output is 5.7 percent greater today than in the previous study, the school reported.

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