Modern universities help towns and cities retain talent and drive local growth, says new MillionPlus briefing

A new policy briefing published today (16 October) by MillionPlus, the Association for Modern Universities, highlights how modern universities are helping towns and cities keep hold of their talent – and in doing so, are fuelling local economic growth.

The report, The Value of Loyalty: How Modern Universities Create Local Skills Ecosystems to Drive Local Economic Growth, shows that many graduates stay rooted in the places where they grew up, studied, and found work. These ‘Loyals’ are not only enriching their communities but also meeting the skills needs of local employers and helping to close long-standing gaps between regions.

The findings reveal that 38% of graduates across England are Loyals, with modern universities far more likely to nurture them than older, pre-1992 institutions. Nearly half (48%) of modern university graduates remain in their home region, compared to just 26% of graduates from pre-1992 universities.

These graduates are especially vital in sectors where demand is high, from healthcare and education to emerging industries like media production and clean energy. By choosing to build their futures locally, Loyals give regions the stability and skills base they need to grow – supporting the government’s ambition to “ignite growth across the regions.”

Modern universities are uniquely placed to foster this loyalty, drawing heavily from local communities, working hand-in-hand with schools and industries, and opening clear routes into local employment.

The report recommends that policymakers:

• Recognise the economic importance of Loyals in shaping higher education and skills policy.
• Consider how increased devolution can support links between universities and local industries, with Mayoral Combined Authorities helping to broker stronger partnerships.
• Develop strategies to retain graduates in high-growth sectors such as clean energy, defence, and advanced manufacturing.
• Encourage the Office for Students to track graduate retention and regional employment outcomes, not just salaries.

Rachel Hewitt, Chief Executive of MillionPlus, said:

“This report shows what many local communities already know – that modern universities are anchors of opportunity and growth. By helping to ensure graduates put down roots where they were raised and educated, these institutions are not only transforming lives but also producing and harnessing the skills and the talent that regions need to thrive.

“If the government is serious about rebalancing the economy and spreading opportunity, then it must recognise the role of Loyals and ensure they are at the heart of future skills and growth policy.”

ENDS

1. For further information or to arrange an interview, please email press@millionplus.ac.uk
2. MillionPlus is the Association for Modern Universities in the UK, and the voice of 21st century higher education. We champion, promote and raise awareness of the essential role and impact of modern universities in the UK’s world-leading higher education sector. More information can be found at www.millionplus.ac.uk
3. The Value of Loyalty: How Modern Universities Create Local Skills Ecosystems to Drive Local Economic Growth is attached to this email and will also be available online here
4. What are modern universities? Modern universities are long established centres of higher education in their communities with roots that stretch back decades, if not centuries. Many gained university title following legislation agreed by parliament in 1992. They make up almost half of the UK university sector with over a million students studying at modern universities every year.
5. Think Modern: Innovation, ingenuity and inclusion from Britain's modern universities – facts and stats