Independent analysis reveals Federation’s $51.4 billion future for Victoria
New analysis has found Federation University will contribute an estimated $51.4 billion to the Victorian economy over the next 25 years – highlighting its critical role in supporting regional prosperity.
The independent analysis by SED Advisory found Federation’s Gippsland, Ballarat and Berwick campuses contribute more than $2 billion to the state’s economy each year, demonstrating the important role regional education plays
Federation University Vice-Chancellor and President, Professor Duncan Bentley said this was a powerful demonstration of what a university can mean to a region.
“Federation University is deeply embedded in the communities we serve, and this analysis puts a clear value on the difference we make," Professor Bentley said.
Federation’s greatest contribution is the people it educates. Each year, close to 5,000 Federation University and TAFE students graduate across its campuses, with the majority staying and putting their skills to work in local communities.
Across its campuses, Federation's cumulative contribution of $51.4 billion over the next 25 years, includes:
- Direct economic benefit: $836 million in economic activity each year through the University's operations, staff employment, student spending and support for local businesses, while supporting more than 8,072 jobs across Victoria
- Annual pipeline of graduates for local employers: 4,977 graduates every year, with the majority remaining local for work
- Long-term value of trained graduates who stay in the region: $35.7 billion over 25 years
- Total economic contribution: $51.4 billion over 25 years, encompassing direct economic impact and cumulative contribution of the graduation pipeline
The findings also reinforce the importance of strong regional universities. Regional and outer metropolitan communities face some of the state's greatest workforce challenges, yet too often miss out on the level of investment needed to build and retain local talent.
Regional universities like Federation help address that gap – creating opportunity, developing local workforces and supporting the long-term economic and social wellbeing of the communities they serve.
“Every day, our students, graduates and staff make vital contributions to our communities – from the nurse caring for a patient, to the teacher inspiring the next generation, to the skilled worker helping deliver our clean energy future," Professor Bentley said.
Embedded in Ballarat for 150 years, Federation sits at the heart of the region's economy
In Ballarat and the Wimmera, Federation University supports around 6,208 local jobs and generates $685 million in direct annual economic benefit, with a cumulative contribution of $21.6 billion in cumulative value over the next 25 years.
This includes graduates who will help address critical workforce shortages, with Victorian Skills Plan data forecasting Ballarat and the Central Highlands will need an additional 11,900 health care workers, 4,300 construction workers and 4,100 education and teaching staff by 2035.
When the long-term economic value of Federation’s graduates is combined with the University’s ongoing direct economic contribution – including staff employment, student spending and support for local businesses – Federation’s total contribution to Ballarat is estimated at $29.8 billion over the next 25 years.
That equates to an average of $1.19 billion in economic activity each year – equivalent to around 15 per cent of Ballarat’s current gross regional product.
The university's Ballarat Technology Parks, comprising two innovation precincts across Mt Helen and the SMB campus, generate an estimated $392 million in direct economic activity each year and support around 1,870 jobs.
Home to global and nation-leading organisations across technology, research and health, the precincts strengthen connections between industry and education – while also providing a pathway for more Federation graduates to stay in Ballarat.
Gippsland's university is key to the region's economic transition
Federation University will contribute an estimated $6.35 billion to Gippsland over the next 25 years, the analysis found, with the University supporting around 1,270 local jobs and generating $86 million in direct economic benefit each year.
Gippsland's pipeline of skilled graduates is expected to deliver an estimated $5.4 billion in cumulative value over the next 25 years.
The analysis comes as Gippsland faces significant workforce challenges, with Victorian Skills Plan data forecasting the region will require an additional 1,700 nurses and more than 2,000 teachers by 2035.
Separately, the analysis identified a critical window for locally training Gippsland’s offshore wind operations and maintenance workforce.
With offshore wind expected to generate an estimated $418 million in annual economic activity in Gippsland by 2032, there is a critical opportunity to ensure the region has the workforce needed to capture this investment.
Federation is uniquely placed to meet this challenge through its Asia Pacific Renewable Energy Training Centre (APRETC) – a hub for renewable energy training, education and research.
Responding to workforce need in Berwick and Melbourne’s rapidly growing southeast
Federation University will help supply the skilled workforce needed by one of Victoria's fastest-growing communities, with the analysis finding the University will contribute an estimated $4.67 billion to Berwick over the next 25 years.
The University already supports close to 400 local jobs and generates over $65 million in direct economic benefit across Berwick and the south-east every year, with the pipeline of skilled graduates expected to deliver an estimated $3.94 billion in cumulative value over the next 25 years.
The findings also highlight the important role Federation plays in Melbourne’s south-east. The Berwick campus serves a catchment of around 950,000 people in a region that has historically had lower access to higher education than other metropolitan areas.
The analysis estimates the south-east Melbourne corridor will grow to around 1.4 million residents by 2040, with Victorian Skills Plan data forecasting the region will need an additional 46,400 health care workers and 17,200 education and teaching staff by 2035.
When the long-term economic contribution of graduates is combined with the University’s ongoing direct economic activity – Federation’s total contribution to Berwick and surrounds is estimated at $4.67 billion over the next 25 years.
The full Federation University Australia Economic Contribution Report can be found at federation.edu.au/about/vision-and-strategy/our-economic-contribution