In a groundbreaking development that underscores the vital contribution of international education to the American economy, recent research reveals that international students have generated an unprecedented $43.8 billion during the 2023/24 academic year, creating or supporting over 378,000 US jobs. This remarkable achievement sets a new record, surpassing the previous high of $41 billion from 2018/19.
Key Economic Impacts:
- Job Creation and Support The study, conducted by NAFSA and JB International, demonstrates a consistent pattern: for every three international students, one American job is created or supported. This powerful multiplier effect ripples through various sectors of the economy, from education to services and retail.
- State-Level Economic Powerhouses Leading the charge in economic benefits are five key states:
- California
- New York
- Massachusetts
- Texas
- Illinois
Perhaps most impressively, a record-breaking 12 states have now crossed the $1 billion mark in international student contributions, up from nine states in the previous year. These dozen states collectively account for 57% of the total economic impact.
- English Language Program Contributions International students enrolled in college and university English language programs contributed an additional $371.3 million to the economy, marking a 0.4% increase from the previous year. These programs alone supported 2,691 jobs, highlighting the diverse ways international education benefits the US workforce.
Shifting Dynamics in International Education:
The landscape of international education is experiencing significant changes. For the first time since 2009, India has overtaken China as the leading source of international students, with 331,602 Indian students pursuing higher education in the US – a remarkable 35% increase from the previous year.
Challenges and Opportunities Ahead:
Despite these impressive numbers, NAFSA Executive Director and CEO Fanta Aw warns against complacency. The annual increase in economic activity has slowed to about half of last year’s growth rate, suggesting that post-pandemic demand may be normalizing while global competition for talented students intensifies.
Strategic Recommendations:
- Policy Reform NAFSA advocates for:
- Expanding dual intent policies
- Creating clear pathways to green cards for international graduates
- Implementing more welcoming practices to attract global talent
- Capacity Utilization With international students currently comprising just over 6% of US higher education enrollment, there’s significant room for growth. Institutions could potentially double this number while maintaining educational quality and resources.
- STEM Focus Special attention is being paid to STEM-related research and innovation, where international students make particularly valuable contributions to American competitiveness.
Looking Forward:
The US for Success Coalition, including NAFSA and other stakeholders, is actively working to:
- Increase international student enrollment
- Diversify the international student community
- Enhance policies supporting international education
- Strengthen America’s position in global education
The latest Open Doors data shows promising trends, with US institutions hosting over 1.1 million international students in 2023/24, representing a 7% increase from the previous year.
Impact on Communities:
Beyond the impressive economic figures, international students contribute significantly to:
- Cultural diversity on campuses
- Global competency development
- Innovation and research advancement
- Local community enrichment
This comprehensive economic impact underscores the crucial role international students play in strengthening American education, innovation, and economic growth. As global competition for talent intensifies, maintaining and enhancing America’s attractiveness to international students becomes increasingly vital for continued economic prosperity and cultural enrichment.
