California, August 24, 2025

News Summary

California’s 116 community colleges are major contributors to the state’s economy, generating over $173 billion annually. A study highlights their impact through operational expenditures, student spending, and alumni productivity, which collectively represent about 5% of the state’s gross product. Community colleges employ approximately 83,000 individuals and support a vast network of jobs, driving significant income and economic activity. Their commitment to serving around 2.1 million students each year, alongside specialized workforce programs, underscores their importance to California’s economic infrastructure.

California Community Colleges Contribute $173 Billion to State Economy

California’s 116 community colleges generate over $173 billion annually for the state’s economy, according to a recent study by Lightcast, a labor market research firm. The report, which focuses on the 2023-24 fiscal year, examined various factors, including operational expenditures, construction projects, student spending, and the productivity of alumni.

The economic activities and graduates of community colleges account for about 5% of California’s gross state product, illustrating their significance in the state’s economic fabric.

Economic Contributions and Employment Impact

Community colleges significantly contribute to the state’s economy through operations and employee compensation. They generate $8.9 billion in payroll and benefits for approximately 83,000 employees, alongside $7.8 billion in goods and services. This activity leads to an additional $7.3 billion in income and supports more than 53,000 jobs.

Construction projects alone account for $1.1 billion of economic impact, equating to around 11,000 jobs. Student spending further boosts the economy by adding an estimated $8 billion and supporting over 93,000 jobs.

Serving a Diverse Student Population

Each year, California’s community colleges serve about 2.1 million students, providing diverse educational and training opportunities. The eight community colleges in the greater Fresno area, such as Fresno City College and Clovis Community College, specifically cater to a significant local student population.

Alumni Impact and Return on Investment

The largest economic impact stems from alumni currently employed in the state, whose productivity contributes around $156.6 billion in income while supporting 1.5 million jobs. The report also outlines a substantial return on investment: for every $1 invested in community colleges, students gain over $13 in earnings, taxpayers see nearly $2 in added tax revenue, and society benefits with $14 in increased income and social savings.

Future Vision and Workforce Development

The findings align with the California Community Colleges’ Vision 2030 strategic plan, which emphasizes improving access and engagement, utilizing generative artificial intelligence in education, and fostering a green economy. Community colleges play a critical role in workforce development, addressing industry needs, and bridging skill gaps with practical training opportunities.

Specialized career education programs are targeting in-demand fields such as healthcare, information technology, advanced manufacturing, and wildfire management. Partnerships with industries, illustrated by programs like Tesla START and Blue Economy and Climate Action Pathways certifications, are further enhancing job readiness and driving economic growth.

Summary of Economic Impact

California’s community colleges are central to the state’s economic infrastructure, generating approximately $128 billion annually in economic impact and fostering career mobility for a diverse population. Their contributions in payroll, construction, student spending, and alumni productivity underscore their importance in maintaining and growing California’s economy.

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Deeper Dive: News & Info About This Topic

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• California Chamber of Commerce: Local Workforce Development and Economic Mobility Have Extensive Community College Underpinnings
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Author: STAFF HERE BEVERLY HILLS WRITER

The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles 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 the Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.