The University of Pennsylvania has released a new report showcasing its substantial economic impact for fiscal year 2024 (FY24), with approximately $37 billion circulating annually through the economies of the City of Philadelphia, the Commonwealth of Pennsylvania, and 14 surrounding counties in Pennsylvania, New Jersey, Delaware, and Maryland.
The report highlights how Penn, as Philadelphia’s largest private employer, plays a vital role in stimulating economic growth. According to the analysis, one in every seven jobs in the Philadelphia area is supported by Penn, with the University’s wide-ranging activities in local construction, research, innovation, and procurement delivering a significant positive economic impact. The total regional economic impact of the University and Health System amounts to $37.7 billion annually, with $30.4 billion benefiting the state of Pennsylvania and $25.2 billion supporting the City of Philadelphia.
The independent analysis, conducted by Econsult Solutions, Inc. of Philadelphia, draws on data presented in the University and Health System’s FY24 audited financial statements. The report identifies four key areas where Penn’s influence is most felt: as the City’s largest private employer, through its extensive campus and neighborhood development projects, as a leader in research and innovation, and through its substantial purchasing power with local vendors and suppliers.
“U.S. higher education is a key driver of American competitiveness in the world. This is especially true of excellent research universities such as Penn,” says Interim President J. Larry Jameson. “Educating, innovating, and providing outstanding clinical care: Penn’s transformative discoveries grow the economy, improve lives, and increase opportunity for people far beyond our campus. One in seven jobs in Philadelphia and 155,000 jobs in Pennsylvania stem from Penn, and we foster deep relationships throughout our region and the Commonwealth to help communities thrive and achieve their goals. As America’s first university, Penn takes enormous pride in contributing to our city, state, and country in such significant ways.”
“Penn’s work with local companies, combined with the broad reach of our educational, medical, and research efforts, directly and indirectly supports thousands of jobs and generates billions in economic activity,” says senior executive vice president Craig Carnaroli. “The FY24 Economic Impact Report demonstrates how the University and Health System anchor the economies of the City of Philadelphia, the Commonwealth of Pennsylvania, and the greater Penn Region while driving economic activity and generating public sector revenue that contributes to local growth.”
Takeaways from the Report include:
Penn generates revenue for Philadelphia and Pennsylvania
The economic activity spurred by Penn’s operations also benefits the public sector. In fiscal year 2024, the City of Philadelphia collected $547 million in tax revenue and the Commonwealth of Pennsylvania received $450 million, largely driven by the university’s operational activities.
Job creation includes both direct and indirect jobs
Directly and indirectly Penn generated approximately 106,600 jobs in 2024 in Philadelphia alone. As the second-largest private employer in Pennsylvania, Penn directly employs 53,000 people. In addition, 53,000 individuals are indirectly employed through the construction-related industries, professional services, as well as retail and manufacturing industries through Penn’s activities.
Penn is building a campus and community
In FY24, Penn invested approximately $1 billion in capital projects focused on local construction and infrastructure, enhancing both the West Philadelphia campus as well as the surrounding community. This spending alone has resulted in approximately 6,900 private-sector construction jobs.
Penn is a powerhouse of research and innovation
One of the world’s leading research Universities, Penn’s annual expenditure of $1.37 billion spans multiple disciplines, including medicine, technology, business, and natural science. This research is helping to answer society’s greatest challenges, while fueling economic growth in the region. In FY24 Penn’s research investments generated:
$2.5 billion in total annual output within Philadelphia, supporting 9,400 jobs and $875 million in employee compensation.
$2.9 billion in total annual output within the Penn Region, supporting 11,200 jobs and $996 million in employee compensation.
$2.8 billion in total annual output within the Commonwealth of Pennsylvania, supporting 10,800 jobs and $964 million in employee compensation.
Penn buys local
Penn’s commitment to local purchasing extends far beyond its own operations, with significant spending on goods and services from vendors across the Philadelphia area. These purchases support a wide range of industries, contributing to a vibrant, diverse local economy. $572 million spent in Philadelphia with 5,000-plus local businesses; $186 million located in West Philadelphia, and $170 million with local women- and minority-owned businesses.
Students and visitors spend, too
In FY24, ancillary spending by Penn’s 25,000 students, along with visitors to the University and Health System, generated $402 million in economic activity within Philadelphia. This includes spending on local businesses, restaurants, retail, cultural attractions, and more.
A vision for the future
Through the lens of the Penn & Philly framework, Carnaroli says the report highlights how, over decades, Penn has become one of the city’s strongest anchored universities.
“Penn’s impact is strongest when we work together—with our neighbors, partners, and peers—to drive meaningful impact. As a cornerstone of economic activity, innovation, and community development, Penn’s alumni, annual operations, capital investments, and student and visitor spending fuel billions in economic output across Philadelphia, Pennsylvania, and the local community.” Carnaroli adds. “When we partner, we progress.”
The executive summary of the report is available at Penn & Philly.
