As the seat of government, Tuguegarao's economy shifted to secondary / tertiary activities. Like a magnet, Tuguegarao attracted many and its vantage point in trade and education strengthened, pushing its population growth rate to 2.48% p.a. and population density to 1,059 persons per square kilometer.

Tuguegarao has 66 public and private pre-schools for deafmutes, 30 elementary schools, 8 high schools, 10 computer/technical institutes, 8 private colleges, and 3 universities - Saint Paul University, University of Saint Louis and Cagayan State University. These schools provide trained manpower, out reach programs, research , technology and national/international recognition.

  The versatile and expanding business sector in Tuguegarao now include top-line products, specialized personal, utility, recreational, institutional and business services, national/international couriers, electronic mail, telefax, cell phones, automated banking, jet flights and internet services.