University of Sheffield generates £4.82 billion for South Yorkshire and UK economies

The University of Sheffield generates over £4.82 billion for the UK economy and delivers a £6.40 return for every pound spent, according to a new report highlighting the Russell Group institution’s crucial role in driving economic growth.

With a total contribution of £4.82 billion to the UK economy in 2022-23, the report underscores the University’s role as a major economic force in the region and beyond.

As a champion of both the city and region, the University works closely with its partners to understand the challenges they face and how they can work together to jointly thrive. This ranges from collaborating with external organisations to drive innovation and fuel economic growth, to working with partners to develop the workforce of the future.

Commissioned by the University and undertaken by leading policy and economics consultancy London Economics, the report analysed the institution’s economic and social contributions across a range of activities in the 2022-2023 academic year.

The analysis highlights the University’s impressive return on investment, showing that for every £1 spent, £6.40 of impact is generated for the UK economy. 

The study also found that more than half of the University’s identifiable regional impact happens in Yorkshire and the Humber. Of that, over 80 per cent is concentrated in South Yorkshire, contributing to economic growth through support for local businesses, suppliers and communities.

Professor Koen Lamberts, President and Vice-Chancellor of the University of Sheffield, said: “From our founding in 1905, the University of Sheffield has been committed to serving our city, region and the wider world.  This report demonstrates how we continue to honour that commitment through our world-leading research, outstanding education and impactful engagement with the many communities we serve. 

“The findings demonstrate how critical universities like ours are to the long-term economic and social prosperity of the UK – whether that is here in our region, or on a national or global scale. 

“The government has been clear that it wants universities to make an even stronger contribution to economic growth, while increasing their civic role. While this may come at what is undoubtedly a challenging time for the higher education sector, it is a mission we very much embrace. We look forward to continuing to work with our partners to increase our positive impact on people and communities in our region and beyond.” 

The University’s impact is further demonstrated by the huge number of jobs it supports across the region and UK. The report found that the University supports 22,990 full time equivalent jobs across the UK, almost 13,000 of which are based in South Yorkshire.

Other key 2022-23 impacts captured include:

• The estimated impact of the University research and knowledge exchange activities stands at £1.8 billion.
• The impact of the University’s expenditure on the UK economy stood at £539 million.
• 138 start-ups and spin-outs (companies that commercialise University research) operating across the UK, with 60 per cent located in South Yorkshire.
• The University generated £55 million of intellectual property (IP) licensing income.
• The impact of the 2022-23 cohort of international students stood at £1.3 billion.

The University’s economic and social impact extends far beyond its Sheffield campus, reaching communities across South Yorkshire and the UK. 

Even while studying, its students are already contributing tens of thousands of volunteer hours to local community groups and charities. During the year analysed, the University had 2,200 student volunteers, who spent over 36,000 hours volunteering in the local community. This could be anything from lending a hand at food banks to supporting adults with learning disabilities.

Before they even graduate, future frontline healthcare professionals are also making a difference. In 2022-23 alone, 750 students spent over 365,000 hours on clinical placements across the NHS, directly impacting people's lives. In addition, more University of Sheffield students remained in Yorkshire and the Humber after graduation than for any other HEI in the region and more graduates are in sustained employment, further study or both than other GB-based Russell Group universities.

Inspiring the next generation is also a fundamental part of the University’s mission, which is why in 2022-23 it worked with more than 8,500 local children and young people who may never have considered higher education to raise aspirations and help them overcome barriers.

Councillor Martin Smith, Chair of the Economic Development and Skills Committee at Sheffield City Council, said: “Our universities are vital to the regional economy, and they help us to showcase just how much Sheffield has to offer on a global scale. This report clearly demonstrates the University of Sheffield's far-reaching economic and social impact.

“The University is an important partner, and we look forward to continuing our relationship, driving economic growth and building on Sheffield's status as a vibrant, warm and welcoming place to live, work and study.”

Read more about the University’s far-reaching economic and social impact here