Melbourne’s only university in the west contributes more than $600 million a year to the local economy and supports more than 4000 local jobs, new research shows.
Economic modelling by VU’s Centre of Policy Studies shows the university’s activities contributed $630 million to the region’s output in 2013 and boosted employment by 4400 jobs.
Report author Professor John Madden said the modelling explored the positive impact on the western suburbs’ economy of having a university in their midst.
“We were looking at all the economic effects of the university, not just its spending,” he said. “We also accounted for how much VU increases the knowledge base of the economy.”
The Economic Effects of Victoria University on Western Melbourne report was released at a dinner on May 21 to celebrate the 100th anniversary since the founding of VU’s inaugural institute, Footscray Technical School.
Professor Madden said the study, conducted as part of VU’s centenary celebrations, was the first time the university’s wider economic impact in the area had been measured.
Modelling considered how many of the university’s students were drawn to live in the west and how many remained living in the area once they graduated.
“Those additional students that VU attracts to western Melbourne, particularly the international students, add $139 million to local spending. Some $70 million of that goes directly into local wages and profits.”
Modelling was based on figures showing about 113,000 students obtained degrees or vocational qualifications from VU’s western Melbourne campuses in the 20 years to 2013.
Professor Madden said about 60,000 of these VU qualification holders were residents of the west in 2013, and more than 26,000 were estimated to be employed in the region.
He said about 10,000 graduates would have been working elsewhere in Melbourne if they hadn’t studied locally at a VU western Melbourne campus.
Modelling showed a $69 million increase in labour productivity from graduates who remained working in the west and an $11 million boost to productivity by local industries due to VU research.
About half of the $630 million annual boost measured in 2013 was accounted for by VU’s direct expenditure, particularly on wages.
A further $183 million was added indirectly by impacts such as attracting new businesses or prompting existing ones to expand activities.
