A view of Philadelphia city buildings from above.

Brief

Eds and Meds: Variability of Anchor Institution Employment Impacts Across U.S. Regions

May 2026

Universities and hospitals anchor regional economies in distinct ways. The updated Anchor Economy Dashboard now separates their economic impacts, revealing how each sector uniquely shapes local economies and drives different regional dynamics.

Communities across the country are grappling with hospital closures and declining university enrollments. Regional economies depend on these anchor institutions, but understanding their relative economic impact is complex. This clarity becomes crucial during disruptions — moments when leaders must quickly assess economic consequences, develop recovery strategies, and mobilize resources to stabilize the region.

A new update to the Philadelphia Fed's Anchor Economy Dashboard now features separate views for hospital and higher education data across 520 regions in 2024, allowing users to compare how each sector impacts local labor markets.

Why This Matters

Anchor institutions — hospitals and universities and colleges — are economic stabilizers that provide steady employment and support economic activity in their regions. New research using the 2024 data explores how these institutions impact local economies differently.

Key Findings:

Hospital employment is larger, accounting for 70 percent of anchor employment impacts and generating more than half of all anchor-related jobs in 90 percent of regions. In certain highly reliant regions, hospital-related employment accounts for over 85 percent of anchor employment impacts.

Growth patterns diverge. The median percent increase in hospital-related employment was 35 percent from 2004 to 2024, versus 19 percent for higher education across regions in our sample. One possible explanation for this is population growth — for every 1 percentage point increase in population, hospital-related employment grew by 1.6 percentage points.

New data can inform policy and community planning. Understanding regional anchor composition can help community leaders and decision makers assess economic vulnerabilities, forecast how demographic shifts will reshape local labor markets, and support community leaders making strategic decisions about workforce and economic development planning in their areas. The Philadelphia Fed studies anchor institutions in support of our dual mandate of maximum employment and price stability.

Explore the dashboard to see how hospitals and universities shape employment in your region, compare your community to similar areas, and understand long-term trends affecting your local economy.

View the Full Brief

Anchor Economy Initiative

Anchor institutions play an important role in regional economies. These large, public-serving organizations provide jobs and services and support local economic activity. The Anchor Economy Initiative examines how hospitals and higher education institutions sustain jobs, drive economic growth, and support equitable regional development in 520 regions across the United States.

Community Development Data

Data

Anchor Economy Dashboard

Explore the economic impact of anchor institutions in 520 regions across the United States. The reliance index demonstrates how dependent regional economies are on these institutions and provides a measure of the national average.

Workforce & Economic Development

Report

Do Anchor Institutions Support Regional Economic Resiliency? Evidence from Penn State University

Adam Scavette,
Robert Calvert Jump &
Deborah Diamond

19 Nov ’25

Universities and hospitals, as anchor institutions, significantly contribute to local economies by providing jobs and services. But what happens in downturns? This study analyzes the economic performance of State College, PA, during three recessions.

Anchor Economy