Top 5 Industries That Drive the U.S. Economy Growth

Numerous sectors contributed to the recovery of the U.S. economy following the downturn caused by the COVID-19 pandemic. According to data from the Bureau of Labor Statistics, the Bureau of Economic Analysis, and insights from various industries, five sectors are projected to enhance gross domestic product (GDP) in 2025.

Health Care

The Bureau of Labor Statistics (BLS) anticipates a 1% annual growth in healthcare and social assistance jobs through 2033. This growth will be fueled by an aging population and a rise in chronic illnesses, including heart disease, cancer, and diabetes. In 2024, healthcare expenditures accounted for 17.7% of the GDP, as noted in Altarum’s “November 2024 Health Sector Economic Indicators Briefs.”

As per the Deloitte U.S. Center for Health Solutions, by 2025, a greater number of healthcare providers are expected to adopt technologies that leverage artificial intelligence, machine learning, predictive analytics, and cloud computing to enhance efficiency and productivity.

Real Estate

In 2024, the real estate sector represented 13.8% of the GDP. This industry encompasses residential investments in new single-family and multifamily homes, renovations, manufactured housing, and brokerage fees. The figures also include housing services such as rent and utilities.

Industry experts predict that investors and developers will experience a resurgence in industry trends as the post-pandemic recovery leads to growth in 2025.

Investments in this sector, including vehicles like REITs, may become advantageous as supply and demand stabilize and financing costs decrease. The Federal Reserve is likely to keep interest rates low or adjust them downward as necessary.

Technology

In 2024, the technology industry contributed for about 8.9% of the U.S. GDP, or about $2 trillion. The Bureau of Labor Statistics projects that employment in professional, scientific, and technical services will rise by 10.5% between 2023 and 2033.

At 19.5% over a ten-year period, computer systems design and related services may have the fastest job growth. The tech industry is growing as a result of rising cybersecurity requirements and cutting-edge technology like artificial intelligence (AI).

Insurance and Finance

Financial transactions, securities issue, loan acquisition, and fund distribution to borrowers are all included in this sector. Those who pool risk by underwriting annuities and insurance are included in the industry. In 2024, the financial and insurance industry contributed 7.4% of the GDP.

According to the BLS, two occupations with strong growth prospects from 2023 to 2033 are accountants and auditors.

Construction

Civil engineers, builders, and contractors work on both residential and nonresidential projects. The Bureau of Labor Statistics projects that jobs in construction and extraction will increase by over 5% between 2023 and 2033.

In 2024, this industry’s gross output was $2.2 trillion, or 4.5% of the US GDP. In comparison to 2024, builders expect to construct 13.8% more homes in 2025.

What Factors Influence Economic Growth in the U.S.?

The growth of the economy can be attributed to various elements such as increases in capital goods, the labor force, advancements in technology, and the development of human capital.

How Is Economic Growth Assessed in the U.S.?

Economic growth is typically evaluated by comparing the production of economic goods and services over different time periods. Traditionally, the overall economic growth is gauged using gross national product (GNP) or gross domestic product (GDP).

The Conclusion

The IT sector, real estate, and healthcare are among the top industries propelling the U.S. economy forward. Analysts utilize metrics like employment data and GDP to identify which sectors are the primary contributors to growth in the United States.