California, August 24, 2025
News Summary
A recent study by Lightcast reveals that California’s community colleges generate over $173 billion annually for the state’s economy. This comprehensive analysis considers operational costs, construction projects, student spending, and alumni productivity, highlighting the colleges’ essential role in California’s economic framework. They employ approximately 83,000 staff, contribute significantly to local job creation, and serve around 2.1 million students each year, making them vital to workforce development and social mobility.
California – A recent study conducted by Lightcast, a labor market research firm, highlights the significant economic contribution of California’s community colleges, revealing that they generate over $173 billion for the state’s economy annually. The findings, which encompass the 2023-24 fiscal year, evaluated various aspects, including operational costs, construction projects, student expenditures, and the productivity of alumni.
The community college system plays a vital role in California’s economic framework, accounting for approximately 5% of the state’s gross product. Among the operational highlights, the colleges provide $8.9 billion in payroll and benefits for around 83,000 employees, alongside $7.8 billion in goods and services. This operational activity generates $7.3 billion in added income while supporting over 53,000 jobs.
Construction projects undertaken by community colleges also contribute significantly, adding $1.1 billion to the economy and creating approximately 11,000 jobs. Furthermore, the spending habits of students contribute an estimated $8 billion to the local economy, supporting an additional 93,000 jobs.
Enrollment and Impact
California’s community colleges serve about 2.1 million students annually, showcasing their broad reach and importance in providing educational opportunities. The eight community colleges in the greater Fresno area, which include Fresno City College and Clovis Community College, contribute notably to this enrollment figure.
Economic Return on Investment
The economic impact assessment points to substantial returns on investment associated with community colleges. For every $1 invested, students can expect to earn over $13 in increased earnings, while taxpayers receive nearly $2 in added tax revenue. Society benefits as well, with estimates suggesting $14 in added income and social savings as a result of this investment.
The report also highlights that the most significant economic contribution comes from alumni currently engaged in the workforce, whose increased productivity amounts to approximately $156.6 billion and supports roughly 1.5 million jobs.
Strategic Goals and Workforce Development
The findings are consistent with the California Community Colleges’ Vision 2030 strategic plan, which aims to improve accessibility and engagement while integrating evolving technologies, including generative artificial intelligence, into educational programs. The colleges are essential for workforce development, addressing industry needs, and reducing skill gaps through practical training.
Specialized career education programs target high-demand fields such as healthcare, information technology, advanced manufacturing, and wildfire management. Collaborative partnerships with industries, including programs like Tesla START and Blue Economy and Climate Action Pathways certification, have been established to enhance job readiness and bolster economic growth.
The Bigger Picture
Overall, California’s community colleges function as crucial economic engines, contributing roughly $128 billion in economic impact annually. They facilitate career mobility for a diverse population while addressing the evolving needs of the workforce.
FAQ
- What is the annual economic contribution of California’s community colleges?
- California’s community colleges contribute over $173 billion to the state economy annually.
- How many students do California’s community colleges serve?
- They serve approximately 2.1 million students each year.
- What is the return on investment for students attending community colleges?
- For every $1 invested in community colleges, students can expect to earn more than $13 in increased earnings.
- What are some key areas that community colleges focus on?
- Community colleges target various fields, including healthcare, information technology, advanced manufacturing, and wildfire management.
- How do community colleges contribute to job creation in California?
- Community colleges support over 1.5 million jobs through alumni productivity, alongside direct employment and construction jobs related to college operations.
Deeper Dive: News & Info About This Topic
- The Business Journal: Economic Report Shows $173B Boost from California’s Community Colleges
- Gold Rush Cam: Study Finds California Community Colleges Support Nearly 1.7M Jobs
- The Conversation: International Students Infuse Tens of Millions into Local Economies
- CalChamber: Local Workforce Development and Economic Mobility
- Wikipedia: Community College
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
