College Towns and COVID-19: The Impact on New England

Oct 15, 2026

Uploaded by Jacob

Abrupt campus closures in New England during the spring 2020 COVID-19 outbreak disrupted students, families, and the higher education sector while shifting teaching rapidly to online formats. The brief evaluates how these shutdowns and potential reopen-or-delay decisions affect local economies, especially communities where colleges and universities are major employers and contributors. It analyzes where employment and commerce depend on institutions facing enrollment declines and low endowments, identifying areas at heightened risk of economic harm.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages12

Reading Time30 min

AccessFree to download

Summary

Campus closures under COVID-19

Higher education employment in New England

Employment, wages, and enrollment impact of higher education

New England cities and towns with higher education institutions

| | | | --- | --- | | | New England Public Policy Center | | | | | Regional Brief | 2020-3 | June 25 , 2020
College Towns and COVID-19: The Impact on New England
Riley Sullivan
Summary
The abrupt closing of college campuses this spring due to the spread of COVID-19 upended the lives of students and their families and disrupted the higher education sector. The impact of these closures and the questions of whether and how to reopen campuses this fall have been widely discussed. Less attention has been paid to the potential consequences for the local economies of the cities and towns that depend heavily on higher education. This issue is particularly important in New England, where in many communities , colleges and universities are among the largest employers and make an outsized contribution to the local economy. The absence of students and campus activities is a major blow to local businesses. And while New England
schools generally have avoided large-scale layoffs so far, extended campus shutdowns and pandemicinduced enrollment declines could force some institutions that already are on shaky financial ground to close altogether. 1 Continued disruption to the higher education sector could threaten even financially strong institutions. This brief examines the number of cities and towns in the region that are highly dependent on employment and commerce from institutions whose declining enrollments and low endowments make them particularly vulnerable during this period. These are the communities that are most at risk of economic harm due to major pandemic-related disruptions to higher education.
| | | | | | | | Campus closures under COVID-19 As the seriousness of the COVID-19 pandemic became increasingly apparent, almost all higher education institutions in New England (and the United States) closed their campuses and emptied their dorms in March and quickly transitioned to online teaching. Many institutions experienced an immediate hit to their budgets when they issued refunds for room and board. The University of Massachusetts system alone faced $70 million in refunds to students.2 Schools kept faculty on the payroll to complete the semester online, but they differed in the degree to which they continued paying staff responsible for student services, from cooks to coaches.3 With business shutdowns continuing and stay-at-home orders or recommendations remaining in effect in the New England states into April and beyond, institutions moved their summer education programs online or cancelled them. Now the immediate question is , what happens with the fall semester? The options being considered range from fully reopening campuses to canceling the fall semester and restarting with the spring semester in January 2021. Any plans are heavily contingent on the course of the pandemic.4 Depending on which option an institution chooses , some of its incoming students may delay enrollment or reconsider their choice of school. Continuing students are raising questions about the value of online education as compared with the “full experience” of campus life.5 The American Council on Education predicts that at the national level, college enrollment will drop a total of 15 percent for the 2020–2021 school year.6 Beyond this question there is discussion about the prospect of major pandemicrelated disruptions to higher education that would be longer lasting. These could include massive declines in the enrollment of foreign students and large shifts to online learning. 7 Enrollment declines would lead to revenue losses for institutions that could result in layoffs. Job losses , coupled with a decreased number of students , likely would cause economic harm to the communities where these colleges and universities are located. Some schools have already begun laying off employees ranging from custodial staff to faculty.8 Higher education employment in New England In New England, higher education has above-average impor

FAQs

Why are college towns in New England at particular risk during COVID-19?

Many New England communities rely heavily on colleges and universities as major local employers. When students and campus activities disappear, local businesses and services can be hit hard.

What financial effects did COVID-19 campus closures create for institutions?

Schools faced immediate budget impacts from refunds for room and board and had to adjust staffing while moving courses online. Extended shutdowns and enrollment declines could worsen already fragile finances.

How does the brief assess local economic dependence on higher education?

It groups cities and towns into quintiles based on higher education’s share of total employment. The analysis highlights communities where colleges and universities account for very large portions of local jobs, wages, and related activity.

Oct 15, 2026

Uploaded by Jacob