ROI of Higher Education
Measuring return on investment (ROI) for higher education.
This research examines the return on investment that provincial and federal governments receive for their financial contributions to post-secondary education programs. STEM, health, and business programs deliver the strongest ROI nationally.
Page updated: November 3, 2025
Research
ROI of Higher Education—November 2025
There are notable differences in the general operating expenses associated with delivering academic programs across Canadian colleges and universities. These costs reflect the resources, equipment, facilities, and staffing required to deliver programs, and they vary widely depending on the field of study.
November 3, 2025 • Online experience • 15-min read
About the Series
This annual report provides a comprehensive analysis of and insights into the fiscal and economic benefits of post-secondary education (PSE). It connects education spending directly to student outcomes, equipping Canadian colleges and universities with the data and intelligence they need to demonstrate their value amid rising costs, declining international student enrolment, budget cuts, and workforce changes.
Using Statistics Canada data, proprietary data from Vicinity online job postings, and Signal49 Research forecasts on job vacancies and skills shortages, ROI of Higher Education is the only report in Canada to demonstrate return on investment in post-secondary education, supporting funding advocacy and strategic program prioritization.
The report includes analysis of:
Income levels and tax revenue generated across education levels, fields of study, and regions.
Operating costs of PSE programs, factors driving variances, and direct contributions from provincial and federal governments.
Job vacancies and skill shortages, highlighting how targeted education investments can fill critical skill gaps and drive economic growth.
The ROI of Higher Education series has been produced since November 2025.
Methodology
The Return on Investment (ROI) of Higher Education series estimates the economic value of post-secondary education (PSE) by comparing the costs of subsidizing PSE with the financial and fiscal benefits associated with higher education attainment levels. The goal is to quantify how investments in post-secondary education yield measurable economic returns for people, governments, and society.
Our approach combines labour market, fiscal, and education system data to estimate both private and public returns. We use the most recent data from Statistics Canada, including the Financial Information of Universities and Colleges survey, Tuition and Living Accommodation Cost survey, and Postsecondary Student Information System, and our proprietary high-frequency labour market data (formerly Vicinity Jobs) to measure the relationship between education, employment, and earnings outcomes.
Estimating earnings and employment outcomes
We measure average income and employment rates by education level and field of study. These estimates reflect the typical earnings advantage associated with post-secondary education relative to high school completion.
Calculating public and private returns
Public returns are derived from the incremental tax revenues generated by higher graduate earnings relative to those without post-secondary credentials. Private returns reflect the additional income earned by graduates after accounting for direct education costs and foregone earnings during study.
Assessing costs of higher education
Program costs include government funding and student tuition and other fees. We allocate public expenditures per student using institutional finance data, adjusting for enrolment and program size.
Net return on investment
We calculate the return on investment by comparing the present value of lifetime benefits (higher income and tax contributions) to the present value of costs to deliver education programs. Results are presented at both the college and university levels and may be disaggregated by field of study and province where data permits.
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Questions?
If you have any questions about the ROI of Higher Education series, or about becoming a subscriber, please contact us.