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Arts sector contributes $763.6bn to U.S. economy, ahead of agriculture

More than agriculture or transportation sector of the United State of America’s economy, new data has shown that the arts and cultural sector contributed over $763.6 billion to the American economy in 2015.

The latest development is more than the agriculture, transportation, or warehousing sectors, according to new U.S. government data released by the Bureau of Economic Analysis (BEA) and the National Endowment for the Arts (NEA).

The arts generated 4.2 percent of the overall U.S. GDP, with roughly 4.9 million Americans working in the sector in 2015, the latest year for which data is available. Collectively, those employed in the sector earned over $370 billion, according to the findings.

The sector expanded by an average of 2.6 percent annually between 2012 and 2015, just outpacing the 2.4 percent growth of the economy overall, according to the report. Between 2014 and 2015, the sector grew at a rate of 4.9 percent after adjusting for inflation.

“The data confirm that the arts play a meaningful role in our daily lives, including through the jobs we have, the products we purchase, and the experiences we share,” said NEA chairman Jane Chu in a statement.

The economic impact analysis comes as the NEA is facing severe cuts under U.S. President Donald Trump’s proposed budget, and one year after the agency staved off the threat of total elimination by his administration.

For industry advocates, the findings underscore the key role of the arts in the American economy. “The U.S. [BEA’s] research makes clear that, if you care about jobs and the economy and infrastructure, you need to care about the arts,” said Robert L. Lynch, the CEO and president of Americans for the Arts, in an emailed statement. “Strategic investment in our arts and cultural organizations is not an extra, it’s a path to prosperity.”

“What’s great about this government report is formal recognition of arts and culture as an industry by the economists of the U.S. government. So in the same way that ‘travel and tourism’ is treated like a real industry, so are the arts,” said Margy Waller, a senior fellow at the research group Topos Partnership, in an email.

The report “clearly demonstrates that the cultural sector is as vital as ever,” said Tom Finkelpearl, commissioner for New York City’s Department of Cultural Affairs (DCLA), in an emailed statement.

“The economic impact of culture is one key piece of the argument in support of arts funding, alongside the benefits it brings to individuals and to our communities,” he noted. New York City’s creative sector employed 295,755 people—accounting for 7 percent of all jobs in the city—in 2013, according to the Center for an Urban Future’s “Creative New York” report.

About Lanre Oyetade

A multiple award winner in Economics and business journalism, Lanre Oyetade has served close to two decades in the media industry, spanning different notable stables, where he is privileged to have risen to the position of a title editor. A masters degree holder in Economics from the University of Lagos and doctoral student at the Babcock University, he is a winner of the prestigious NMMA Capital Market Award for two consecutive years (2004 & 2005), and was also a nominee for the body’s banking and finance and money market awards for two years. In 2013, he also won the Most Outstanding Business-Reporting Title Editor award of the National Institute of Marketing of Nigeria (NIMN). A minister in the LORDS’s vineyard, he has been an inspirational speaker and resource person at many corporate and religious fora since early 2004, and has so far authored three books on the capital market; on personal effectiveness, and on personal finance, in 2008 and 2014, respectively.