Healthcare occupations are expected to rise at an annualized pace of 18 percent from 2016 to 2026, far faster than the rest of the economy, according to the Bureau of Labor Statistics.
What sector contributes the most to the US economy?
The financial, real estate, insurance, rental, and leasing industries contributed the highest value to the US GDP in 2020. This industry contributed $4.66 trillion to the national GDP in that year.
What is the largest economic sector in the United States?
The retail trade industry in the United States generates $905 billion in GDP value added, accounting for 6% of total GDP. The retailing process, which is the ultimate stage in the distribution of commodities to the final customer, is included in the industry. Fixed store retailers, which are defined by walk-in clients who purchase products for residential or personal consumption, make up the retail industry. The retail industry is the largest employer in the United States economy, accounting for 10% of all jobs in the country. According to the National Retail Federation, the industry employs approximately 15 million people directly or indirectly. Online merchants such as Amazon and eBay, which make millions of dollars in sales every day, are also part of the sector.
Which industry currently dominates the US economy?
The United States’ economy is dominated by a well-developed and technologically proficient services sector, which accounts for over 80% of total output. In fields including technology, financial services, healthcare, and retail, the US economy is dominated by service-oriented businesses.
What are the three main economic sectors?
In economics, the three-sector model divides economies into three activity sectors: raw material extraction (primary), manufacturing (secondary), and service industries (which exist to enable the transportation, distribution, and sale of commodities generated in the secondary sector) (tertiary). Allan Fisher, Colin Clark, and Jean Fourasti created the model in the first half of the twentieth century as a representation of an industrial economy. It has been criticized as being unsuitable as a depiction of the economy in the twenty-first century.
According to the three-sector model, an economy’s major focus changes to the secondary, then the intermediate, and lastly the tertiary sector. Low per capita income countries are still in the early stages of development, with primary sector production accounting for the majority of their national income. Countries in a more advanced stage of development, with a medium national income, rely heavily on the secondary sector to produce revenue. The tertiary sector dominates the overall production of the economy in highly developed countries with high GDP.
Some economists have expanded the concept by adding a fourth quaternary or fifth quinary sector, while others have abandoned it due to the growth of the post-industrial economy, in which a growing amount of economic activity is not directly tied to physical goods.
What is the fastest-growing industry in the United States?
In addition to being the world’s largest importer, China is a target market for both developed and developing countries due to its position as the world’s largest source of foreign direct capital. With a population of 328 million people and a GDP of over $ 19 trillion, it is one of the world’s most important markets. The United States’ economy has the ability to influence the global economy. The abundance of natural resources is the first of two key components that have a structural role in the US economy, and skilled labor is the second.
The United States places a high value on workforce education in the field of communication and information technologies. Finance, healthcare, transportation, and real estate are some of the other key service sectors in the United States. Retail, IT, and the arts and entertainment industries are among the fastest growing. Experts also predict that the majority of new business areas in the next years will be in the service industry, particularly in health and social work.
International Airlines
In the five years leading up to 2021, the international airline industry’s demand has changed dramatically. Due to increased competition from international enterprises and chronic overcapacity in the freight market, operators have been obliged to decrease ticket prices and freight rates in recent years.
In the five years leading up to 2026, demand in the International Airlines industry is likely to be characterized by extensive recovery from the COVID-19 (coronavirus) pandemic. Vaccination campaigns that began in December 2020 are likely to continue into 2021 and beyond, according to the estimate. International air travel restrictions are likely to be eliminated based on the effectiveness of mass vaccination, and industry revenues are expected to gradually return to pre-pandemic levels.
Hotels & Motels
Changes in the domestic and global economic climate have a significant impact on this industry. As a result of the global covid-19 (coronavirus) pandemic, this business will see significant changes in the five years leading up to 2021. Normally, increasing trip spending, business profitability, and overall consumer spending helped the industry. The arrival of the coronavirus in the United States, on the other hand, instantly reversed economic trends, resulting in lower expenditure and a suspension of travel. Over the next five years, until the end of 2026, the hotel and motel business is predicted to recover. The sector will grow as the economy improves and the number of visitors and business travelers increases.
Casino Hotels
The casino hotel industry’s revenues have decreased over the five years leading up to 2020. The United States, which historically prohibited gambling, has relaxed its regulations, and domestic competition has developed throughout this time. International gambling cities, such as Macau, compete by granting tax incentives to new operations. Due to the COVID-19 (coronavirus) pandemic, all casino hotels were forced to close temporarily in mid-March 2020. The casino hotel sector is expected to improve during the following few years, through 2026. Despite the fact that some regions are struggling with new competition, other businesses are benefiting from the addition of casinos.
Movie Theaters
This sector has had blockbuster triumphs and a growth in disposable income per capita in the last five years, attracting more spectators to theaters. Alternative methods of watching movies, such as online streaming platforms and other forms of entertainment, compete with this sector on the outside. The coronavirus outbreak has wreaked havoc on the sector. Over the next five years, the movie business is predicted to increase once more. An increase in expenditure on cinema tickets will be aided by restless consumers and a gradual increase in per capita income.
Non-Hotel Casinos
Non-hotel casino spending has been limited due to a variety of issues, including rising competition. Casino owners that have been in business for a long time have struggled in the last five years, owing to an influx of new gambling hotels in states that circumvent casino prohibitions. As a result, industry revenues fell 5.9% yearly to $ 15.2 billion in the five years leading up to 2021, with a 52.6 percent drop in 2020 alone. The number of hotels is projected to rise. Consumer spending is expected to rise as per capita income rises, according to estimates of a recovery in the US economy following the negative economic consequences of the coronavirus pandemic. Young people are also expected to gravitate away from gaming and toward other forms of participatory entertainment, such as live events and concerts.
Tour Operators
For the five years leading up to 2021, the tour operator industry grew, owing to rising disposable income levels and a strengthening global economy. As unemployment has decreased and consumer spending has increased, people of the United States have increased their domestic and international travel. Furthermore, non-US citizens’ foreign travel has increased as disposable income levels in European, Latin American, and Asian countries have risen. When lockdowns and travel restrictions were implemented in the United States and around the world in 2020, this industry faced a precipitous fall. It is expected to grow during the following five years, till 2026.
Domestic Airlines
The domestic airline business has seen considerable revenue decreases in the five years leading up to 2020. While most of this time was marked by greater economic expansion, the COVID-19 (coronavirus) epidemic wreaked havoc on the sector. Operators who primarily deal with scheduled passenger transportation are one of the industries most vulnerable to the pandemic’s harmful consequences. As a result, industry revenues decreased at a 12.0% annual rate to $ 71.0 billion in the five years leading up to 2020, with a projected 53.8 percent drop in 2020 alone. Business and consumers are starting to travel again as the economy improves, and the domestic airline industry is expected to revive in five years.
Travel Agencies
In the five years leading up to 2021, travel agencies will see a considerable decline in revenue, profitability, and overall industry share. The 2020 COVID-19 pandemic is to blame for the drop in demand and industry activities. The imposition of rigorous travel restrictions was meant to stop the virus from spreading further. Industry revenues are predicted to drop at a 6.4 percent annual pace to $ 32.1 billion over the five years to 2021 as a result of these unforeseen problems. The structure of the travel agency sector is projected to undergo considerable changes and challenges over the next five years, until 2026. Expedia Group Inc. and Booking Holdings Inc., for example, are expected to continue to grow their market share at the expense of their traditional competitors. There is expected to be a growth in specialty travel, which would necessitate the management of unique travel requirements.
Concert & Event Promotion
Operators in the concert and event promotion sector manage and promote a variety of live events. Revenues in the industry increased significantly over the five years leading up to 2021. When the covid-19 epidemic hit, the industry’s income was expected to drop by 69 percent in 2020 alone. The quarantine period ended this year, therefore the industry’s achievements will be determined by the efficiency and quickness with which it organizes events or other activities if it wants to produce revenue. This industry is expected to recover more quickly from the pandemic, and demand for it is expected to be lower. The constraints on the organization of live events that have evolved and are being maintained this year add to the unpredictability and complexity. Live events are one of the last sectors of the national economy to thaw, as any threat of the virus spreading could lengthen the pandemic’s duration in the country.
Taxi & Limousine Services
The taxi and limousine service industry, which includes a variety of non-scheduled transportation services such as taxis, luxury automobiles, and limousines, has been in demand for the past five years, with the exception of 2020, due to rising consumer expenditure and private investment. Furthermore, the widespread availability of ride-sharing programs such as Uber Technologies Inc. (Uber) and Lyft Inc. (Lyft) has allowed new drivers to enter the business, resulting in a significant boost in its growth. As a result of numerous trip plans being canceled, people not going to work, hotels, and other factors, revenue in 2020 was anticipated to plummet by 13.8 percent. Increased demand from corporate travelers, tourists, and individual households will boost the taxi sector by 2026, a five-year period. Consumer and company expenditures are expected to rise, putting a strain on the industry.
Water Parks
Consumer spending on discretionary leisure and tourism activities increased as a result of the economic expansion, allowing the water park business to see strong revenue growth throughout the most of the five-year period ending in 2021. It benefited and profited the water park operators by increasing the sale of entry tickets and licensed sales. Unfortunately, the coronavirus has severely impacted the operations of industry businesses, resulting in a drop in overall sales. Within five years, from 2026, the water park business will see a greater economic recovery from the coronavirus pandemic. The virus’s ability to transmit amongst people has proven to be the most devastating force in the industry’s history, resulting in inevitable revenue decreases, job losses, and factory closures. Furthermore, the water park business model confronts particular hurdles in terms of adopting pandemic sanitation, social distancing, and other infection-prevention measures.
Sightseeing Transportation
Tourist and sightseeing transportation services are provided by the Sightseeing Transportation sector on three levels: ground, sea, and air. Bus excursions, helicopter flights, boat rides, and train tours are commonly offered by operators in this industry. Improving economic conditions for the majority of the years until 2021, which will help this industry generate more income by increasing consumer spending on recreation. As you may be aware, the pandemic hit several businesses hard, including this one, which will see a major drop in profits by 2020. In the five years leading up to 2026, the Sightseeing Transportation industry is expected to rebound from the previous period’s turmoil and see rapid growth.
Aircraft Maintenance, Repair & Overhaul
The aviation maintenance, repair, and overhaul business is thought to have performed poorly in terms of sales in the five years leading up to 2021 due to contradictory patterns. Operators in this industry supply aircraft and air transport operators with support services. Inspection and testing of aircraft, as well as maintenance, repair, and overhaul of aircraft and their parts, are among the most vital and critical services. The success of a broader range of air traffic industries is linked to industry demand. Given the frequent flights and the resulting industrial service needs, aircraft maintenance, repair, and overhaul revenues are predicted to return to stable growth in the five years to 2026. Airlines will also continue to invest in newer, more fuel-efficient aircraft fleets, according to my predictions.
Amusement Parks in the US
The theme park industry had strong growth in the five years leading up to 2021, fueled by increased international and domestic tourists as well as increased consumer expenditure. Mechanical rides, water rides, games, performances, themed exhibitions, drink kiosks, and other attractions are available in amusement parks and amusement park companies. The Walt Disney Company, Universal Parks & Resorts, SeaWorld Entertainment Inc., Six Flags Entertainment Corporation, and Cedar Fair LP are the five largest participants in the business. In the five years leading up to 2026, the theme park industry is predicted to improve dramatically following the COVID-19 (coronavirus) pandemic.
Shoe Stores in the US
Profits in the sector are reliant on high consumer expenditure. Until 2021, when the COVID-19 (coronavirus) pandemic began, the economy got stronger for the majority of the five years. Due to shifting buying patterns of customers who prefer to buy footwear from online stores or department stores, the benefits of increased demand have not necessarily benefited industry participants. The strong economic slump in 2020, as well as the temporary shutdown of numerous industrial plants, resulted in a considerable loss in revenue. The footwear sector is predicted to rebound strongly in the five years leading up to 2026, following steep reductions in the aftermath of the pandemic. The business is likely to be held back by the growing popularity of online shopping and pressure from manufacturers selling items directly to customers. Consumers will still be able to compare costs readily as e-commerce takes a larger role in the retail sector, providing impediments to industry revenue development.
Online Hotel Booking
Companies that primarily provide hotel reservation services through online platforms make up the online hotel reservation business. Customers can use these websites to find and book hotel information. Hotels that solely accept direct bookings on their websites or through travel agencies are not included in this market. The industry has benefited from considerable development in internet business in the five years leading up to 2021, indicating that more and more customers are ready to book online. As a tourist and travel-related industry, it has also been damaged by the coronavirus outbreak, which has resulted in a major decline in profitability. Revenues from online hotel reservations are predicted to increase dramatically over the next five years, reaching $1 billion by 2026. Travel restrictions have gradually been relaxed as the COVID-19 (coronavirus) pandemic has slowed and a vaccine has been introduced.
Ski & Snowboard Resorts
For the majority of the five years leading up to 2020, before the COVID-19 (coronavirus) pandemic, the ski and snowboard resort business profited from excellent broader economic conditions. Unfortunately, according to study published in Geophysical Research Letters, the length of the snow season in the West has dropped by 34 days since the early 1980s, affecting ski resort activity. In the five years leading up to 2025, the ski and snowboard sector is predicted to revive. Increased household income is projected to enable many Americans to spend their holidays and activities such as skiing and snowboarding as the COVID-19 (coronavirus) epidemic fades.
Automobile Engine & Parts Manufacturing
In the five years leading up to 2020, the automotive engine and components manufacturing industry has had a rocky ride. Operators in this business are responsible for the production of gasoline engines and related components that are required in the manufacture of automobiles. This industry’s income and profits are derived from the manufacture of automobiles. Engine manufacturers’ revenues have decreased as new car sales have slowed in recent years. In addition, when the covid-19 pandemic broke out in 2020, this drop was accelerated. With the sale of new cars in the United States, revenue from automotive engine and parts production is predicted to rise by 2026. This rise is presumably the result of improved consumer confidence and historically low interest rate hikes, which have increased consumers’ willingness to spend and reduced the cost of borrowing.
Medical & Recreational Marijuana Growing
Hemp has shown to be one of the fastest growing industries in the United States. The medical and recreational marijuana sector, which includes both employers and non-employers that produce cannabis for medical and recreational use, thrived in the five years leading up to 2021. Arizona, Montana, New Jersey, and South Dakota are among the states that have enacted legislation to legalize recreational marijuana in 2020. Consumer views have also hastened legalization efforts at the state level. By 2026, the medicinal and recreational marijuana industries are expected to reach unprecedented heights. While the business will continue to benefit from a more positive attitude toward medicinal marijuana therapy, consumer demand for recreational marijuana will drive sector expansion.
Ocean & Coastal Transportation
Cruise lines and freight carriers transport passengers and cargo to and from US ports, making up the marine and coastal transportation business. The industry had mixed outcomes over the five-year period ending in 2021. Overcapacity in the deep-sea shipping sector hampered the industry’s growth, although increased trade activity in the United States in 2019 boosted demand. The capacity of operators to collect revenue through fuel surcharges has been hampered by price spikes in crude oil. In the five years leading up to 2026, the maritime and coastal transportation business is predicted to rise once more. Improving economic circumstances in the US and overseas are expected to promote international commerce activity, boosting demand for water freight at this time.
Hair Salons
For the majority of the five years leading up to 2021, hairdressing establishments benefited from changing hairstyle trends. Hair alteration treatments, grooming services, coloring, and other auxiliary services to regular haircuts have all seen a surge in demand as a result of these trends. Due to the coronavirus epidemic, showrooms were forced to close temporarily, resulting in a drop in demand. As a result, industry revenue fell by 3.2 percent on an annual basis. In the five years leading up to 2026, the hair salon business is predicted to resume growth, with sales continuing to rise.
Merchant Banking Services
Until the year 2019. In the last five years, the commercial banking services business has experienced moderate growth. Private midsize businesses can get stock, debt, and trade financing from commercial banks. Merchant banks offer a wide range of services to downstream clients, including capital raising and international transactions. Over the next five years, by 2025, continued macroeconomic recovery is predicted to boost demand for foreign corporate investment, trade finance, and transnational facilitation services. Private equity investment volumes are likely to rise as capital markets recover, demand for alternative assets rises, and asset valuations improve. Commercial banking financing activities will be boosted even more by a greater focus on private investment prospects in the middle market.
Trade Show and Conference Planning in the US
Companies from practically every industry, as well as government agencies and non-profit groups, are typical consumers of the trade show and conference organizing industry. Convention, conference, and similar event organizers, promoters, and managers work in the trade show and conference organizing sector. Growth across the economy raised demand for industrial services in the five years to 2021, as company activity and consumer spending surged. The trade fair and conference planning sector is predicted to grow in income during the next five years, until 2026.
Aircraft, Engine & Parts Manufacturing in the US
The aircraft, engine, and parts industry designs and manufactures aircraft, engines, and related components for civilian and military use. Industry revenues have recently declined after years of rapid growth. The majority of this reversal was attributable to a reduction in US demand for military planes and related components as a result of a slowdown in defense spending in the military sector. In addition, as a result of the coronavirus pandemic, industry revenues are likely to plummet as demand for air travel falls dramatically. The aircraft, engine, and parts sectors are predicted to recover from the downturn in five years, through 2026. Following a steep decrease in 2020 that destroyed the commercial sector, the expanding local and international demand for air travel is projected to drive up demand for new commercial aircraft and related parts. Increased military equipment exports, on the other hand, as well as the anticipated short-term rise in the defense budget, should help to resuscitate the arms sector.
Real Estate Sales & Brokerage
The real estate sales and brokerage industry exhibited considerable growth till 2020. The epidemic wreaked havoc on the economy and had a significant influence on the real estate market. The economic crisis, social distancing initiatives, and working from home have all had a negative impact on the commercial real estate market. When the economy and real estate market recover from the coronavirus epidemic, the real estate sales and brokerage business is expected to grow steadily over the next five years, through 2026. The economy is likely to improve in the next years as the pandemic diminishes, and demand for real estate brokerage services is expected to rise. Rising housing prices, increasing property sales, and increased construction activity, all of which are projected to improve industry revenues, are likely to raise industry revenues.
What are the four major business sectors?
- The phrase industry refers to a group of companies that operate in a same business sector, and it is more narrowly classified.
- A sector is a section of the economy that can categorize a large number of enterprises and is larger in comparison.
- For investment prospects, investors may readily compare companies in the same industry.
- Stocks in the same industry frequently trade in the same direction because their fundamentals are affected in the same way by market variables.
- The economy is divided into four sectors: primary, secondary, tertiary, and quaternary.
What are the four economic sectors, and what is an example of each?
- Mining, fishing, and agriculture are examples of the primary sector, which involves the exploitation of raw resources.
- Secondary/manufacturing sector involved with the production of completed items, such as the construction industry, manufacturing, and utilities such as electricity.
- The service Or ‘tertiary’ sector is involved with providing consumers with intangible goods and services. Retail, tourism, finance, entertainment, and I.T. services are all included.
Primary sector
Because it includes taking raw resources, the primary sector is sometimes known as the extraction sector. Fish, wool, and wind power are examples of renewable resources. It could also be the usage of nonrenewable resources, such as oil extraction or coal mining.
The coal industry in the United Kingdom employed over one million people in the 1920s. It was a critical component of the economy. This main sector industry, however, has suffered a drastic fall due to increased technology and the expansion of other energy sources.
Utilities – supplying items to households such as power, gas, and telephones
The manufacturing business takes raw resources and mixes them to make a final product with a higher value added. Raw sheep wool, for example, can be spun into higher-quality wool. This wool can then be threaded and knitted to make a wearable pullover.
The industrial industry began with labor-intensive ‘cottage industries,’ such as hand spinning. However, advancements in technology, such as spinning machines, allowed for the expansion of larger facilities. They were able to lower production costs and enhance labor productivity by taking advantage of economies of scale. Higher earnings and more revenue to spend on products and services resulted from increased labor productivity.
Service / tertiary sector
The intangible part of providing services to consumers and businesses is the focus of the service industry. It entails the sale of manufactured items at retail. It also offers a variety of services, including insurance and banking. The service industry grew in the twentieth century as labor productivity increased and disposable income increased. With increasing disposable income, people may spend more on ‘luxury’ services like tourism and restaurants.
Quaternary/knowledge sector
The intellectual side of the economy is thought to be represented by the quaternary sector. It encompasses education, training, technological advancement, and research and development. It is the process that allows entrepreneurs to improve manufacturing processes and the quality of services provided in the economy by innovating better manufacturing processes. Economic progress would be slow or non-existent without the advancement of technology and knowledge.
It is also known as the knowledge economy, which refers to the part of the economy that is reliant on human capital, such as information technology, knowledge, and education. It’s mostly about the service industry, but it’s also about the high-tech component of manufacturing.
Examples of different sectors
A primitive economy will be centered mostly on the primary sector, with agriculture and food production employing the majority of people.
Improved technology allows for less labor in the agricultural sector and more employees to generate manufactured items as an economy advances. The expansion of the service sector and leisure activities is enabled by continued development.