Primary sector of the U.S. - statistics & facts
Industries within the United States are sorted into three major economic categories, depending on the specific resource each industry creates or provides. The secondary sector, also referred to as the manufacturing sector, produces goods such as chemical products, computer and electrical products, and machinery. The tertiary sector then distributes the manufactured products to customers through the provision of services. Given that the categories are in sequential order, raw materials must first be extracted prior to their manufacturing and distribution. Those responsible for extracting such materials belong to the first, or primary sector, and include industries such as oil and gas extraction, agriculture, mining, or fishing.
The agriculture sector makes up approximately 1.36 of the total workforce in the U.S., which is a fraction compared to that of other industries. Although the share of people employed by the industrial and service sectors has been relatively consistent over the last years, there has been a slow yet steady decrease in the agricultural sector’s workforce. As economies strengthen and countries continue to develop, the agricultural sector appears to grow proportionally automated. With the primary sector continuing to experience rapid mechanization, the required workforce may decrease in correlation with how the industry has progressed technologically. For example, as of 2021, nearly 23 percent of China’s total workforce was employed in the agricultural sector. Although drastically higher than that of the U.S., China’s share of agricultural employees has been significantly decreasing in the last years, dropping 11.8 percent since 2011. This may suggest that, as with the U.S., the more China has experienced rapid economic growth, the more its agricultural industry has mechanized.
Industry Breakdown
While the numeric value of the primary sector may not rival the other two sectors, it nevertheless bears great importance for the U.S. economy. In 2023, oil and gas extraction added 180 million U.S. dollars to the U.S. GDP. The mining industry is another prominent industry within the sector, adding an additional 115.8 million U.S. dollars to the GDP that year. Rounding off the top three industries within the primary sector is the agricultural industry. In 2023, there were almost two million farms in the United States, with their net value reaching approximately 244 billion U.S. dollars. Bearing the importance of the agricultural industry in mind, many are concerned that the number of farms in the U.S., as well as their total acreage, has continued to decrease in the last years. The U.S. also has a strong fishery industry. In 2022, there were around 8.35 billion pounds of aquaculture procured by commercial seafood landings in the U.S., including inland, marine, and coastal industries. Alaska is by far the leading state in terms of aquaculture production, with a yield of 4.8 billion pounds of seafood in 2022.Employment
Fluctuation in production often mirrors employment trends, making each an indicator of the other. Concern has increased concerning the future of employment within the primary sector as more initiatives are being taken to shift toward more sustainable energy production. Between the years 2012 and 2022, the number of employees within the mining industry decreased from 794,000 to 556,000 respectively. While, the rates of employment in industries such as mining, gas and oil extraction have decreased, it appears to be merely a shift in direction. At the end of 2022, there were more than 3.3 million Americans working clean energy jobs. It is quite possible that job opportunities will continue to rise in the clean energy industry, as the share of electricity generated from renewable energy sources continues to rise in the U.S. Thus, it appears that the dip in employment may be a result of job reallocation across industries, rather than a net loss in job opportunities.The agriculture sector makes up approximately 1.36 of the total workforce in the U.S., which is a fraction compared to that of other industries. Although the share of people employed by the industrial and service sectors has been relatively consistent over the last years, there has been a slow yet steady decrease in the agricultural sector’s workforce. As economies strengthen and countries continue to develop, the agricultural sector appears to grow proportionally automated. With the primary sector continuing to experience rapid mechanization, the required workforce may decrease in correlation with how the industry has progressed technologically. For example, as of 2021, nearly 23 percent of China’s total workforce was employed in the agricultural sector. Although drastically higher than that of the U.S., China’s share of agricultural employees has been significantly decreasing in the last years, dropping 11.8 percent since 2011. This may suggest that, as with the U.S., the more China has experienced rapid economic growth, the more its agricultural industry has mechanized.
