Alabama’s 24 community colleges generate $8.1 billion for the state’s economy

As printed in the 2025 Q1 Alabama Minute newsletter.

According to an independent report by Lightcast, a global leader in labor market analytics, students and alumni of the Alabama Community College System (ACCS) contributed $8.1 billion to the state’s economy, an amount equal to about 3% of Alabama’s total gross state product.

“The ACCS enriches the lives of students by raising their lifetime earnings and helping them achieve their individual potential,” the report states. “The colleges benefit state and local taxpayers through increased tax receipts and a reduced demand for government-supported social services.”

The report also states Alabama’s community colleges support 114,043 jobs in Alabama, which is equivalent to one in every 26 jobs. Some students, who might have otherwise left Alabama for higher education, stayed because of the opportunities available at the state’s community colleges. In the 2023-24 school year, 3% of ACCS students were from out of state, with some relocating to Alabama specifically to attend a community college.

While the ACCS plays a role in attracting and retaining talent, its greatest impact comes from its alumni. In FY 2023-24 alone, ACCS alumni generated $6.9 billion in added income, supporting the equivalent of 96,200 jobs in Alabama.

Over the years, the ACCS has become the largest training entity in the state. Its graduates and students have gained valuable skills and knowledge, enabling them to contribute meaningfully to Alabama’s workforce.

Individually, students can expect a more than reasonable return on investment from their 2-year education. For every dollar a student invests in their education with the ACCS, they can expect to gain $5.60 in lifetime earnings. Alabama’s 2-year college system generates more tax dollars than it takes. State taxpayers will see $1.20 in added tax revenue and public sector savings for every dollar invested into the system. Society will also benefit $6.50 in added incomes and social savings for every dollar.

View the full report at www.accs.edu/impact/.