While Americans constitute less than 5% of the population of the world, they do generate and earn more than 20% of the world’s total income. The United States is the largest economy of the planet and a leading global trader. As per Kavan Choksi Business Consultant, the US economy is marked by innovation, flexibility and innovation.
Kavan Choksi Business Consultant talks about a few major drivers of the United States economy
The decade following the Great Recession the economic recovery in the United States was in full swing. Jobs were being created by the millions prior to the Covid-19 pandemic and wage growth was also on the rise. There are many sectors that helped fuel the growth of the US economy during this time. Here are a few of them:
- Healthcare: Healthcare was among the key sectors that helped the United States to recover from the 2008 financial crisis. This sector managed to add about 2.8 million jobs to the economy between 2006 and 2016, which was almost seven times faster than the overall economy. There are many reasons contributing to the booming healthcare sector. Firstly, the increasing ageing population in the US creates a need for additional care services. Secondly, chronic conditions suffered by the ageing population are consistently increasing the demand for healthcare workers. Medical improvements and advances are also expanding the number and types of jobs available in the sector.
- Technology: The technology sector is a vital component of the United States economy. Employment in computer and IT has especially gone up considerably in the country. A large part of this demand stems from the rising prominence of cloud computing, which includes the collection, and storage of big data and information security. Technology plays an important role in almost all other sectors, including energy, education, transportation, advanced manufacturing and healthcare. Machine learning, Internet of Things, artificial intelligence, autonomous vehicles, as well as augmented and virtual reality are impacting varied industries, and the society at large.
- Construction: Diverse segments of the construction industry have witnessed considerably over time. The jobs available for civil engineers, contractors as well as residential and nonresidential builders have majorly gone up. To a certain extent, this growth is driven by population growth, which is increasing demand for new buildings, roads, and varying other structures.
- Retail: The retail trade accounts for a good part of the nation’s GDP. As per the National Retail Federation (NRF), retail supports almost one in four U.S. jobs. This sector includes both online retailers and brick-and-mortar establishments.
- Non-durable manufacturing: Non durable manufacturing industry is responsible for producing commodities that tend to have a lifespan of less than three years, like gasoline, electricity, and clothing. Increasing capital spending and business tax reform are some of the major reasons that motivate businesses to invest in the manufacturing industry
As per Kavan Choksi Business Consultant, the information technology sector played a crucial role in the economic recovery post the 2008 financial crisis and has had a significant impact on various industries through the integration of advanced technologies like artificial intelligence and machine learning. The healthcare sector, in particular, has experienced positive outcomes from these technological advancements, coupled with increased demand for products and services driven by a growing and ageing population.
