New Jersey Community Colleges Generate $12.8 Billion for State Economy, Study Finds

New Jersey’s 18 community colleges contribute $12.8 billion annually to the state’s economy and support more than 135,000 jobs across the Garden State, according to a new independent study released this week.

The comprehensive analysis, commissioned by the New Jersey Council of County Colleges and conducted by economic consulting firm Lightcast, examined the schools’ broad economic impact using fiscal year 2023-24 academic and financial data from the colleges, along with industry and employment statistics from federal agencies.

The $12.8 billion figure represents nearly 1.6% of New Jersey’s total gross state product, according to the study. The colleges support 135,492 jobs statewide, meaning one out of every 46 jobs in New Jersey connects to community college activities, students or alumni.

Alumni earnings drive the largest portion of the economic impact, generating $11.7 billion of the total contribution, according to the analysis. Lightcast, described as a nationally recognized economic and data consulting company with expertise in labor market and workforce analysis, based its findings on data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau.

“This analysis quantifies and reinforces what we already knew about the substantial economic impact of New Jersey’s 18 community colleges,” said Aaron Fichtner, president of the New Jersey Council of County Colleges. “Community college alumni, through their knowledge, creativity, and entrepreneurship, meet the workforce needs of the state’s evolving innovation economy and, through higher lifetime earnings, contribute directly to our state’s economic prosperity.”

The study highlights the role community colleges play in providing educational opportunities for diverse student populations throughout the state. “Our community colleges open doors of economic opportunity for New Jerseyans across the state, including many who are low-income, first generation, and from backgrounds traditionally underrepresented in higher education,” said Jessica Stewart Purnell, the council’s chair and a trustee at Camden County College.

Community colleges have long served as accessible entry points for higher education in New Jersey, offering lower tuition rates compared to four-year institutions while providing career training and transfer pathways. The new economic data provides concrete evidence of their broader impact beyond individual student outcomes.

The timing of the study’s release coincides with ongoing discussions about higher education funding and workforce development in the state. “As this study indicates, every dollar we invest in New Jersey’s community colleges pays dividends to our students, our employers, our communities, and our state,” said Maria Heidkamp, the council’s chief innovation and policy officer.

Heidkamp noted the organization plans to use the findings in future policy discussions. “We look forward to working with the new Sherrill Administration and our State Legislators to expand access to affordable, high-quality education at our state’s 18 community colleges,” she said.

The economic impact study arrives as New Jersey continues efforts to align workforce development with industry needs and address skills gaps in key sectors. Community colleges often serve as training grounds for in-demand fields including healthcare, manufacturing, information technology and skilled trades.

The analysis reinforces arguments that community college investment generates measurable returns through increased tax revenue, reduced unemployment and enhanced economic competitiveness. With more than one in 46 jobs connected to community college activities, the institutions’ influence extends well beyond their campuses into communities statewide.

The complete study is available through the New Jersey Council of County Colleges for those seeking detailed breakdowns of the economic impact calculations and methodology.