Anchor Economy Initiative

Why Anchor Institutions Matter

Hospitals and higher education institutions are economic anchors — vital to both local and national prosperity. Together, they contribute $2.2 trillion annually to the U.S. economy and support 19.5 million jobs, representing 9 percent of total U.S. employment.

These institutions help stabilize and strengthen regional economies. As major employers and purchasers of local goods and services, hospitals, colleges, and universities drive economic activity in their communities. When an anchor institution thrives, it creates jobs and stimulates growth. When one closes or consolidates, communities can face significant shifts in their local economies.

Understanding their economic impact serves two key purposes:

• It enables the Philadelphia Fed to better assess regional conditions in pursuit of its goals of maximum employment and stable prices.
• Community leaders have access to data and information to plan for the future of these critical institutions.

Anchor Economy Dashboard

The Anchor Economy Dashboard tracks the economic impact of higher education and health-care institutions across 520 multicounty U.S. regions using data through 2024. It answers two key questions:

• What is the economic impact of colleges and hospitals within their regions?
• How reliant are regions on these anchor institutions for overall economic activity?

The dashboard provides data on employment, income, and gross domestic product (GDP) for both sectors. A key feature allows users to analyze higher education and health care independently, revealing how each sector distinctly shapes regional economies — or view them together for a comprehensive picture of anchor institution impact.

The dashboard also includes a unique reliance index showing how dependent each regional economy is on its anchor institutions.

All metrics can be compared across regions, and data can be downloaded for further analysis.