A new study commissioned by UC Merced shows the university generating more than $1 billion in local impact annually, employing thousands in the county, and generating valuable research.

More than 30 years after opening, the study finds the university providing one in every 15 jobs in Merced, advancing the region’s educational outcomes and economic activity.

“The Valley is our home. UC Merced, as this report confirms, is a powerful driver of economic vitality, population growth, and individual prosperity for Merced County, the Valley, and the state, in addition to delivering the highest standard of student success and globally recognized research,” said Chancellor Juan Sánchez Muñoz.

University Jobs Make Up 6% of Entire County

That $1.1 billion figure accounts for roughly 4% of Merced County’s total economic output, the university’s release stated. UC Merced partnered with Beacon Economics for the study. Together with statewide spending, the university generates a statewide impact of about $1.36 billion.

Operations drive the majority of that figure. The payroll and services at the campus generate about $478 million a year. After that, real estate and housing account for $267 million.

The 7,332 jobs directly produced by the university make up 6% of all jobs in Merced County, the study from Beacon Economics shows. That has contributed to the $34 million in tax revenues within Merced County and $45 million statewide.

The college also supports local businesses through its students. The study found collectively, students spend more than $69 million at businesses around the campus each year.

Enrollment Growth Matches Regional Education Attainment

Since 2019, UC Merced has maintained an enrollment of between 8,100 and 8,400 undergraduate students each year, 99% of whom are Californians. Since its opening, it’s conferred nearly 22,000 degrees.

This corresponds with the general educational advancement of the region, according to the study. Since 2014, poverty rates in Merced County have declined 6 percentage points while the number of residents with at least a bachelor’s degree has increased 2 percentage points.

Merced’s progress matches that of the Central Valley. Poverty rates in the Central Valley’s most populous counties declined by between 4 and 14 percentage points, led by Kings County. Educational attainment also increased, with the rate of people with bachelor’s degrees increasing.

“Overall, the Central Valley’s progress has unfolded alongside the growth of institutions such as UC Merced and reflects a strengthening regional economy,” the study reported.

UC Merced Research Expenditures Grew 72% in 5 Years

Research at UC Merced also has a ripple effect on the economy. Between 2019 and 2024, expenditures on research have grown 72% to $77 million a year. Alongside that spending comes a 78% increase in doctoral degrees awarded.

Since its inception, the university has issued 970 doctoral degrees and 817 master’s degrees.

Researchers at the Health Sciences Research Institute study chronic disease prevention, environmental health, mental health, and health equity in the Central Valley.

One example: Associate professor Sandie Ha studies models on how prenatal exposures to air pollution, pesticides, and chronic illness affect maternal and child health in the Valley.

Researchers at the engineering school study friction, wear, and lubricants in extreme environments that has direct relevance in aerospace and defense sectors.

A new medical pathway at the university will route graduates from a bachelor’s degree to a medical doctor degree in partnership with UCSF. Supported by $243 million in state funding, the program will be housed in a new campus medical education building.