What’s the solution to Columbia’s lagging job growth? Keeping USC graduates, study says
Job growth in the Columbia area continues to lag behind the rest of South Carolina, according to a new study by USC that offers one potential remedy.
Keep more USC graduates in Columbia.
From 2015 to 2024, South Carolina’s employment grew at an annual rate of 2.9% , according to the study by Joe Von Nessen of the Darla Moore School of Business. Greenville and Spartanburg’s employment grew 2% each, but Columbia’s growth was just 1.4%.
The study estimated that about 40% of USC students stay in the Columbia area after they graduate. If more students stayed, economic growth would follow, said the study, which examined the economic impact of USC.
For every 1 percentage point increase in the number of USC students who remained in Columbia, the region would reap an additional $18.8 million in annual economic activity, the study said.
Two common reasons for graduates to leave Columbia are outside job opportunities and lifestyle factors such as being close to family, the report said. More graduates would. stay if “outside employers” hired USC graduates to work remotely and if new employers relocated to Columbia “to capitalize on the local talent base generated by USC.”
Overall, Von Nessen’s study said USC has a $7.4 billion annual impact on the state’s economy. The impact has grown by 35% in nearly a decade.
“USC is a major economic driver and a strong competitive asset for the State of South Carolina,” said Von Nessen, the study’s lead researcher.
The system, which employs 61,700 South Carolinians, accounts for one in 39 jobs across the state, according the study. It is responsible for $3 billion in annual labor income, or roughly $1 out of every $50 earned. It also creates $224.6 million in annual state tax revenue.
In the Columbia metro area alone, the university accounts for a $4.2 billion annual economic impact and supports one in every 10 jobs. Nearly two out of three USC alumni living in South Carolina reside outside the region.
The university’s impact is poised to grow greater still.
According to a news release, the university is working to maintain its role in the local economy by fostering research collaborations to develop batteries, artificial intelligence and pharmaceuticals; securing funding from federal agencies; and bolstering the workforce by keeping USC graduates in South Carolina.
USC’s new medical school building in Columbia, upcoming neurological hospital and tech partnership with SC Nexus is also expected to boost the economy.
“Through student education, innovative research, athletics and the arts, USC is a catalyst for job creation and increased economic prosperity across the state,” USC President Michael Amiridis said in a news release. “Through the continued support and partnership with local and state leaders, we will do even more in the future to improve the lives of all South Carolinians.”
