New Campus Glasgow: Strategic Benefits Analysis
46
• The uplift in student earnings resulting from higher-level earnings and improved
employment prospects.
• Expenditure of students in the local economy. This expenditure includes the
'participation costs' of students in travel to the colleges, and on books and other
learning materials, as well as the more significant accommodation and living costs
incurred by overseas students.
College expenditure, employment and GVA
6.18 The three colleges combined employ around 588 full-time equivalents (FTEs). Total
staff costs are approximately £35m. The GVA impact of the three colleges combined is
£36.7m5
.
6.19 Multiplier effects show the extent to which the three colleges support other jobs and
activity throughout the rest of the economy (so-called indirect effects), and through employees
spending part of their wages on local goods and services (so-called induced effects). The
table 6.1 below shows the impact of these multipliers effects.
Table 6.1: Total impacts of college expenditure on GVA
Output
(expenditure)
Employment GVA
Direct effect £50.4m 588 £36.7m
Combined multiplier
effect
(indirect+induced)6
1.69 1.38 1.51
Total impact £85.1m 811 £55.4m
6.20 The total combined impact of the three colleges is thus to support £85m expenditure,
811 FTEs and £55.4m GVA across Scotland7
.
Uplift in learners' earnings
6.21 Information contained within the Review of Scotland's Colleges (Scottish
Government, 2006) sets out the median earnings that can be expected with each qualification
level. The table below presents this information, and shows the additional income that a
learner can expect on moving from one qualification level to the next qualification level.
5 Following guidance from the European System of Accounts, GVA is approximated from staff costs,
taxes, and the difference between income and expenditure.
6 Source: Scottish Government (2003)
7 Multiplier impacts are smaller for smaller areas. Assuming that the multiplier impacts for Glasgow are
50% of the multiplier impacts for Scotland, the colleges will generate output, employment and GVA
impacts of £85.4m, 856 FTE and £56.7m respectively.
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Appendix 13: Economic Impact Report