The University of South Carolina system has a $7.4 billion annual impact on the state’s economy, a new study released Thursday (Jan. 16) found.
The study, conducted by the Darla Moore School of Business, shows the school’s economic impact on the Palmetto State has grown by 35 percent since researchers first studied it eight years ago when it stood at $5.5 billion. A subsequent study in 2021 placed the annual impact at $6.2 billion.
The latest Moore School impact study highlighted USC’s momentum in bolstering South Carolina’s workforce, employee paychecks and state taxes.
- Statewide employment tied to the USC’s eight system campuses has reached 61,700 – accounting for one out of every 39 jobs in South Carolina.
- The USC system accounts for $3 billion in annual labor income, or roughly $1 out of every $50 earned in South Carolina.
- USC generates $224.6 million in annual state tax revenue.
“USC is one of South Carolina’s primary competitive assets, generating a sizable economic footprint in many ways – from day-to-day operations to high-tech research and development,” said Moore School economist Joseph Von Nessen, the study’s lead researcher. “USC also provides employers with access to a high-skilled workforce, which is one of the most important resources for businesses, particularly in a market environment where many industries are struggling to find the workers that they need.”
USC is poised to grow its statewide economic impact through a number of ongoing business and education initiatives, including developing a new neurological hospital and rehabilitation center and propelling an advanced energy tech hub through the SC Nexus collaborative and other efforts.
"The University of South Carolina has been vital to the growth and prosperity of the Palmetto State for two centuries and continues to demonstrate its role as a leader in boosting South Carolina’s economy and workforce,” said Gov. Henry McMaster, who holds history and law degrees from USC. “My alma mater will continue this momentum as the catalyst and a leading partner in our SC Nexus advanced resilient energy hub that will make our state a magnet for cutting-edge innovation, and with the development of the university's Health Sciences Campus that will meet future medical needs of South Carolinians for generations to come.”
Nearly two out of three USC alumni living in South Carolina reside outside the Columbia metropolitan region, demonstrating how the university’s graduates contribute to local economies throughout the state, the study found.
USC continues creating a huge impact in the Columbia region, home to the university’s main campus. USC accounts for $4.2 billion annual economic impact in the Columbia metro area, while supporting one in every 10 jobs and $1 out of every $9 in labor income.
“USC is an indispensable asset to residents of South Carolina,” said USC President Michael Amiridis. “Through student education, innovative research, athletics and the arts, USC is a catalyst for job creation and increased economic prosperity across the state. Through the continued support and partnership with local and state leaders, we will do even more in the future to improve the lives of all South Carolinians.”
The latest study also examined the economic impact of USC’s seven system institutions across the state. The universities’ statewide economic contributions range from $45.9 million at USC Union to $624.3 million at USC Upstate.
Four-year campuses
- USC Columbia: $5.9 billion in economic impact, 50,814 jobs and $2.5 billion in labor income.
- USC Aiken: $360.5 million in economic impact, 2,770 jobs and $140.8 million in labor income.
- USC Beaufort: $141.3 million in economic impact, 1,236 jobs and $63.6 million in labor income.
- USC Upstate: $624.3 million in economic impact, 4,479 jobs and $226 million in labor income.
Palmetto College campuses
- USC Lancaster: $118.4 million in economic impact, 877 jobs and $44.4 million in labor income.
- USC Salkehatchie: $70.3 million in economic impact, 506 jobs and $25.5 million in labor income.
- USC Sumter: $88.8 million in economic impact, 668 jobs and $33.9 million in labor income.
- USC Union: $45.9 million in economic impact, 358 jobs and $18.2 million in labor income.
“Working together as a university system, we’ve made tremendous progress in ensuring our students are career ready while also producing significant economic benefits to the entire state. We look forward to doing even more in coming years and will continue to set the standard for what a state flagship university can achieve,” said Board Chairman Thad Westbrook.
USC’s new and ongoing academic and economic initiatives will promote growth in existing businesses and attract new firms that should help keep more highly skilled graduates in the state. The Moore School impact study found that every percentage point increase in USC’s graduate retention rate generates $18.8 million in new annual economic activity.
A new statewide internship program launched in 2023 has placed nearly 1,000 USC students in South Carolina companies, supporting the needs of students and businesses alike.
The university also has built research collaborations with private sector firms to develop batteries, artificial intelligence and pharmaceuticals; industry groups, including the S.C. Manufacturer's Alliance, to bolster the state economy and workforce; and federal agencies to secure record-setting funding.
USC is developing a health sciences campus in Columbia that will include a new School of Medicine, a proposed neurological hospital and rehabilitation center, and a new Brain Health Center – creating a hub for medical care, education and research.
The university also is a leader in SC Nexus, a federally recognized tech hub that will work on innovation in energy generation, distribution and transmission.
To read the study, visit our Photoshelter site.