California Community Colleges Contribute $173 Billion Annually

California, August 24, 2025

News Summary

A new report from Lightcast reveals that California’s 116 community colleges contribute over $173 billion to the state’s economy each year. They account for about 5% of California’s gross state product through operational activities, construction projects, student spending, and alumni productivity. The study emphasizes the importance of these institutions in workforce development and economic stability, highlighting their role in career mobility for approximately 2.1 million students annually, with significant returns on investment for students and taxpayers alike.

California Community Colleges Generate $173 Billion Annually

A new economic impact report reveals that California’s 116 community colleges contribute over $173 billion to the state’s economy each year. This study, conducted by Lightcast, a labor market research firm, reviewed the fiscal year 2023-24 and has underscored the significance of community colleges in enhancing both economic stability and workforce development in the state.

The report highlights that community colleges account for approximately 5% of California’s gross state product, primarily through a combination of operational activities, construction projects, student spending, and the productivity of alumni.

Economic Contributions

According to the report, operational activities of community colleges generate $8.9 billion in payroll and benefits for around 83,000 employees. Additionally, $7.8 billion is spent on goods and services, leading to a further $7.3 billion in added income and supporting over 53,000 jobs.

Construction projects have also proven significant, contributing roughly $1.1 billion to the state economy and providing around 11,000 jobs. Moreover, student spending is estimated to have added $8 billion to the economy, supporting over 93,000 jobs.

Student Demographics and Career Mobility

California’s community colleges cater to approximately 2.1 million students annually, offering access to diverse educational opportunities. The importance of these institutions is evident as they facilitate career mobility among a varied population, directly aligning with the state’s labor market needs.

The report also reveals that the largest economic impact arises from alumni currently working within the state, whose increased productivity contributes around $156.6 billion in income and supports an impressive 1.5 million jobs.

Return on Investment

In examining the return on investment, the report indicates that for every $1 invested in community colleges, students can expect to gain over $13 in earnings, taxpayers see nearly $2 in added tax revenue, and society benefits with around $14 in social savings and income improvement.

Strategic Focus and Industry Partnerships

This comprehensive analysis aligns with California Community Colleges’ Vision 2030 strategic plan, which aims to enhance access, integrate innovative technologies into learning, and generate a greener economy. The colleges play a critical role in workforce development by addressing industry needs and bridging skill gaps through practical training in specialized career education programs in fields like healthcare, information technology, advanced manufacturing, and wildfire management.

Partnerships with industry leaders have further enhanced job readiness and economic growth. Examples include collaborations like the Tesla START Program and the Blue Economy and Climate Action Pathways certification program.

In summary, California’s community colleges are not only vital educational institutions but also crucial economic drivers that generate approximately $128 billion annually. Their impact is instrumental in promoting career mobility for a broad demographic and tackling the evolving workforce requirements in the state.

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Deeper Dive: News & Info About This Topic

• The Business Journal: Economic Report Shows $173B Boost from California’s Community Colleges
• Amazon News: AWS Data Center Economic Impact Study
• Community College Daily: Why International Students Remain Important for Community Colleges
• California Chamber of Commerce: Local Workforce Development and Economic Mobility
• Wikipedia: Economic Impact

Author: STAFF HERE MISSION VIEJO WRITER

MISSION VIEJO STAFF WRITER The MISSION VIEJO STAFF WRITER represents the experienced team at HEREMissionViejo.com, your go-to source for actionable local news and information in Mission Viejo, 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 Oso Fit 5K Fun Run and Community Health Fair, Walk Against Drugs & Community Fair, and National Night Out. Our coverage extends to key organizations like the Mission Viejo Chamber of Commerce and Providence Mission Hospital Mission Viejo, plus leading businesses in retail and education that power the local economy such as The Shops at Mission Viejo, Capistrano Unified School District, and Amazon Delivery Station. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.