UNITED STATES / SALARY

Introduction

The United States economy is massive. The high economic growth is attributed to its high productivity, making it the 7th country with the highest value of natural resources. The currency used for both local and international transactions is the US Dollar.

The guide will help you learn about the United States GDP, various sectors of the United States economy, inflation, and employment statistics.

GDP

The Gross Domestic Product of the United States has grown gradually over the years. In the year 2017, the GDP was 19.5 trillion, and the year 2018 20.1 trillion. In the current year, which is the year 2021, the GDP is at 22.785 trillion. The highest growth was experienced in the year 2008, which was a 2.9 percent increment. However, due to the Covid -19 pandemic there was a GDP drop in 2020. The GDP per sector is.

·       Agriculture sector 0.9%

·       Industry sector 18.9%

·       Services 80.2%

The United States GDP per capita is currently at $68,310. The United States is ranked 7th in terms of GDP per capita. The growth has been gradual over the years where economists attributes it to

·       Low productivity growth

·       Reduced corporate investment

·       Slow growth in the labor force and population

·       Lack of significant innovation

Economic sector

Some of the leading industries which have led to massive economic growth include.

·       Health care

Health care has led to a massive boost of the United States economy. The sector has led to more jobs creation. The primary reason for the job creation includes Increased demand for workers due to chronic diseases that the aging population faces, and additional employees are needed to take care of the aging population.

·       Technology

Most of the sectors require technology for them to work effectively. This has led to more employees filling the gap.

·       Aerospace

The United States is famously known for manufacturing airplanes. We have seen companies such as Boeing and General Dynamics making military aircraft and private airplanes.

Employment 

The country has the fourth highest labor force in the world. In the year 2017, there were about 160.4 million people in the employment sector. The main employer is small businesses which contribute 37% of the employees. Large business sectors follow closely with around 36% of the labor force.

Private sectors also employ a vast workforce than the government, where the private sector accounts for 85% while the government accounts for 14% of the workforce. Statistics collected in the year 2018 the employment sector labor force for various sectors are as follows.

·       Industries 19%

·       Services 80%

·       Agriculture 1%

Statistics for the year ending 31st December 2017 showed that the rate of unemployment was at 4.1 percent. That indicates that around 6.6 million people in the United States were not employed during that year. The primary reasons for unemployment include.

·       Demographic shifts

·       Retirements

Unemployment has gradually increased over the years. However, in May 2014, there was an increase in payroll jobs as the economy recovered. However, the Covid 19 pandemic has had adverse effects. The unemployment rate in April 2020 rose to 14.7% then fell to 11.1 % at the end of June 2020. By August 2021, the unemployment rate of the United States stands at 5.2%.

Exports and Imports

By the end of 2020, United States exports estimated amount was $2.127 trillion. The main exports and import partners of the United States include Japan, China, Mexico, Canada, and the European Union. United States exports are from various sectors such as agricultural products, fuel and mining products, manufactures, and other sectors. The allocation of exports in the different sectors is as follows. The United States imports amount to 2.808 trillion.

Inflation

The primary indicator of inflation in a country is the consumer price index. The inflation rate in the year 2020 was 1.2 percent. That shows that the purchasing power of the US dollar is stable. Statistics by the international monetary fund show that the United state's inflation rate is relatively low compared to other countries. A country like China had an inflation rate of 2.92 percent in 2020.

Income and wealth

1.    Income inequality

The income inequality of a country is how the income is distributed among the people. With such data, we know how many people are in the lower class, middle class, and high class. In 2017 United States income inequality was ranked 41 out of 156 countries. Income equality has risen over the years. From the 1970s, the country has experienced a widening gap between median incomes and productivity. The main reasons for that being.

·       Decrease in per capita hours worked.

·       Increase in non-cash benefits, which are not counted as CPS income data such as share of workers compensation.

·       Statistical distortion.

·       Immigrants are entering the labor force.

·       Income ever-changing from labor to capital.

·       Period adjustment after an income surge such as post wars.

2.    Household net worth and wealth inequality

In 2017 the household net worth of the United States was $ 99 trillion. That was a $5.2 trillion increase from the previous year. The $ 99 trillion represents each person getting $ 302,000.

Studies in 2017 show that wealth inequality is at high records where it was estimated that 1 percent will regulate 70% of United States wealth by 2021. Wealth inequality is very high as compared to other developed countries. We can see it as the ten top wealthiest countries with about 80%  of the financial assets.

3.    Homeownership

In 2018, the homeownership rate was 62.4%.  Homeownership is relatively high in comparison to other countries. The country's average home equals 65 square meters, fifty percent more than most average high-income countries. Research done by Pew Research Centre shows that Americans of age between 18 and 34 are more probable to stay with their guardians.

Conclusion

A country's economy is mainly measured by its GDP, Inflation rate, and the various sectors of the economy.  United States economy is high compared to other developed countries and the world's largest economy in terms of net wealth and GDP