Can The U.S. Survive With Just 5% Of GDP From Manufacturing? By Fulbright Financial Consulting, PA.
Since September 2018, manufacturing activity plunged from record levels, and officially went into recession territory in August. Manufacturing now accounts for just 11% of total US economic activity and its continued plunge is the source of fears about the future of the American economy. Can the U.S. economy survive if the manufacturing sectors continues to shrink? Here are the facts. In 1950, manufacturing jobs were 37% of total private sector jobs. Today that figure is 10%. Some manufacturing jobs have been replaced by jobs in leisure and hospitality, sectors with lower-paying jobs; but most of the lost manufacturing jobs have been replaced by better-paying jobs in the health care sector, education or professional and business services. These are the latest projections from the Bureau of Labor Services of the sectors of the economy that will experience the fastest job creation rates over the next decade. Health care is projected to grow the fastest by far! Some 34 million new jobs are expected to be created in the health care sector! And professional and business services are expected to add 17 million new jobs to the economy through 2028, and it’s another high paying sector. Growth of jobs in the service sectors of the economy are largely a function of population growth, which means that the more people we add to population, the more jobs will be created in these sectors. Since population growth increases demand for jobs in these services, the U.S. is not only able to survive, but because manufacturing jobs are being replaced by better paying service sector jobs, the American economy can thrive even as manufacturing shrinks. Please contact us with any questions email@example.com or to set up a meeting , and don't hesitate to share this video with people who might benefit from my work.