During Economic Highs and Lows, the Arts Are Key Segment of US Economy – The Southern Maryland Chronicle

News Release, National Endowment for the Arts

Washington, DCAccording to the latest data issued today by theBureau of Economic Analysisand the National Endowment for the Arts, the arts remain a vital component of the U.S. economy. As the United States navigates a time of economic uncertainty due to the spread of COVID-19, it is important to recognize and champion the economic contributions of the arts to all 50 states, the U.S. territories, and the nation as a whole.

The sixth edition of the Arts and Cultural Production Satellite Account (ACPSA) finds that arts and culture contributed $877.8 billion, or 4.5 percent, to the nations gross domestic product (GDP) in 2017. That same year, there were over 5 million wage and salary workers employed in the arts and cultural sector, earning a total of $405 billion.Complete national findingsare available including interactive infographic anddata tables.

The ACPSA tracks the annual economic impact of arts and cultural production from 35 industries, both commercial and nonprofit. The 35 industries that are tracked range from architectural services to sound recording and are considered a distinct sector of the nations economy. With the outbreak of COVID-19, many arts organizations and venuestheaters, concert halls, museums, studios, festivals, and gallerieshave shut their doors until further notice from public health officials.

Earned income accounts for a substantial share of the bottom line of most nonprofit arts organizations, Sunil Iyengar, Director of Research & Analysis at the Arts Endowment, said. During economic downturns, the sector is acutely vulnerablein terms of earned income, but also in fundraising. Given the lean operating budgets of such organizations, these losses can have an outsized impact, leading to fewer jobs in arts industries, and in the businesses that supply them.

Key National Findings

As arts venues close, it will be important to monitor the impact on ticket sales.

Arts industries that contribute the most value to the nations GDP are also highly reactive to swings in business cycles including:

Even as the sector continues to respond to market forces, it is worth noting that arts and culture contribute significantly to the U.S. economy.

The arts and cultural sector add more to the economy than do construction and transportation/warehousingcombined.

Arts and culture generate a widening trade surplus. From 2006 to 2017, this surplus grew 9?fold, to more than $25 billion.

The sector has shown a capacity for rapid growth.

Key State Findings

On a state level, the arts and cultural sector added $72.8 billion to the economies of rural statesi.e., states in which 30 percent or more of the population live in rural areas, equaling 18 states.

Six states significantly surpassed the average national growth rate of 5.6 percent for the period 2015-2017: Washington, California, Nevada, Utah, Georgia, and Massachusetts.

Arts and cultural value-added for Average annual growth rate of 2017 (in millions) value-added: 2015-2017

Complete state findingsare available also.In addition, through an award from the Arts Endowment, the National Assembly of State Arts Agencies (NASAA) has producedan interactive dashboardthat allows users to explore key information for individual states.

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During Economic Highs and Lows, the Arts Are Key Segment of US Economy - The Southern Maryland Chronicle