This year, new international student enrollment fell by more than 21,000 students, and the economic consequences are already evident.

New IMPLAN analysis reveals just how vital international students are to the economic health of communities across the United States. The economic footprint of these students extends far beyond tuition payments, driving billions in GDP, supporting tens of thousands of jobs, and sustaining key local industries.

A Look at the Numbers: International Students as Economic Drivers

This year, 277,118 new international students enrolled in U.S. institutions. That’s 21,587 fewer new international students compared to last year, as recently reported by the Institute for International Education. According to IMPLAN’s analysis of the new students’ spending (rent, food, healthcare, transportation, and retail purchases) their presence directly and indirectly supports:

•  $12.6 billion in U.S. GDP
• Over 93,000 jobs nationwide
• More than $6.6 billion in labor income

These impacts reach well beyond campuses. Student spending flows into the housing market, local restaurants, grocery stores, clinics, transportation services, and retail establishments, sectors that rely heavily on consistent student demand.
IMPLAN modeling shows that the year over year decline in enrollment led to:

• 7,300 fewer U.S. jobs supported
• $0.5 billion less in labor income
• Nearly $1.0 billion in lost GDP

This contraction reflects both the direct decrease in student spending and the indirect and induced effects that ripple through supply chains and households.

Who feels the impact?

Because international students interact with the economy as consumers, the occupations most affected by enrollment declines are those tied closely to everyday spending. The largest year-over-year job losses appear in:

Retail Sales Workers: 390 jobs lost
Food & Beverage Servers: 370 jobs lost
Home Health Aides: 290 jobs lost
Healthcare Diagnostic Support Roles: 280 jobs lost
Material Moving Workers: 260 jobs lost

These impacts show that student populations don’t just support consumer-facing industries – they also help sustain the workforce in healthcare and logistics through their broader economic activity.

Why This Matters for Communities and Policymakers

International students are deeply woven into the economic fabric of U.S. cities and college towns. Their spending:

• Anchors local retail and restaurant activity
• Supports landlords and property managers
• Helps sustain public transit and other community infrastructure
• Strengthens healthcare systems and service-sector employment
• Contributes to local and state tax bases

A decline of over 21,000 students in a single year doesn’t simply reduce classroom head counts. It places pressure on small businesses, limits service-sector job opportunities, and challenges local governments relying on tax revenues tied to consumer spending.  Long term, reduced enrollment can also weaken the pipeline for advanced STEM talent, an area where international students have historically played a critical role.

“International students do far more than attend classes—they sustain local economies,” said Bjorn Markeson, Ph.D., economist at IMPLAN. “A drop in enrollment isn’t just a campus issue. It affects retail workers, restaurants, healthcare providers, transportation networks, and the tax revenues that support community services. These findings show just how quickly policy changes or enrollment caps can ripple across regions.”

The Outcome

International students play a critical and often underappreciated role in sustaining U.S. economic activity. This year’s drop in new enrollment translated into:

• Thousands of jobs lost
• Hundreds of millions in foregone labor income
• Nearly $1 billion in lost GDP

As policymakers debate enrollment caps, visa processing changes, or other regulatory shifts, it’s essential to consider not only academic and immigration implications, but also the substantial economic consequences. International students remain a powerful engine of economic activity nationwide, and declines in their numbers carry tangible costs for communities large and small.

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