The arts and culture industry, which made up 4.4% of the U.S. economy in 2021, accounted for a record $1 trillion of the nation’s gross domestic product (GDP) that year. According to a study spearheaded jointly by the National Endowment for the Arts (NEA) and the Bureau of Economic Analysis (BEA), the field rebounded relatively quickly from the global Covid-19 crisis, growing 13.7% between 2020 and 2021, while the wider economy gained just 5.9% over the same period. Of note, the arts and entertainment sector has been among the most affected by the pandemic.
Of the thirty-five sub-sectors included under the arts and culture umbrella, ten of them – including those comprising performers, performing arts organizations, independent artists and writers – have experienced significant growth, while still failing to regain their pre-pandemic earning power. . Web streaming and publishing, the only arts sub-sector to see a sizable increase in 2020, gained 27.3% in 2021, surpassing pre-pandemic levels. The businesses that make up the subsector, including music and film archives, are often for-profit, compared to 82% of the cultural industry, which is for-profit or not-for-profit. Arts-related construction, such as building and restoring museums and other cultural facilities, and philanthropic services, which include grantmaking and donations, fell for the second straight year in 2021.
Jobs in the arts have declined, with 4.9 million employed in the sector in 2021, up 3% from 4.6 million in 2020, but less than the 5.2 million working in the field in 2019. The report’s authors noted that these figures do not include freelancers or freelancers. In 2019, these workers represented approximately 33% of the arts industry.
“This annual report from the NEA and BEA highlights that arts and culture are an essential part of the American economy. It is also evident, however, that the sector is still facing enormous difficulties due to Covid-19,” said NEA President Maria Rosario Jackson. “As the data reflects the economic activity of non-profit and for-profit organizations, it is important to recognize the distinct contributions the two make to ensuring a vibrant and expansive arts and culture sector.
