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We Make More Than Food: Groceries = Jobs, Economic Growth

October 27, 2011

Yesterday GMA released a new study, commissioned by GMA and conducted by PricewaterhouseCoopers LLP, detailing the extraordinary contributions of food, beverage, and consumer products manufacturers to the U.S. economy.

In short, grocery manufacturers provided more than 1.7 million jobs and contributed more than 6 percent of the U.S. gross domestic product in 2009. Other key findings included:

-In 2009, food and beverage companies alone directly provided more than 1.5 million jobs, which accounted for approximately 13 percent of all U.S. manufacturing jobs. This makes food and beverage manufacturing one of the largest employers in the manufacturing sector, according to Bureau of Labor Statistics data.

-Each job in the food and beverage industry supported an average of five jobs in other sectors of the economy, including agriculture, construction, other manufacturing, transportation, and finance.

-In 2009, U.S. grocery manufacturers paid workers more than $94 billion in wages and benefits, and in total supported an additional $424 billion in wages and benefits in other sectors of the economy.  The food and beverage industry alone paid workers $78 billion in wages and benefits.

-In 2009, U.S. grocery manufacturers directly contributed $173 billion to U.S. GDP and in total supported more than $900 billion in U.S. GDP.  The food and beverage sector alone contributed $128 billion directly to the gross domestic product and an additional $600 billion in indirect contributions.

-In total, food and beverage manufacturers’ economic activities directly and indirectly accounted for almost 5 percent of wages, salaries and benefits paid in the U.S. and more than 5 percent of U.S. GDP.

Combining the PwC results with Bureau of Labor Statistics data on retail and distribution jobs, the food industry helps employ more than 15 million Americans in more than 30,000 communities across the entire value chain, from farm to table.

So the next time you’re walking down the grocery aisle, scanning the shelves for your favorite products and deals, remember that the food in those packages does more than nourish our bodies, it is a major driver of our economy, providing secure jobs for millions of our friends, neighbors and family members in communities across America.

by Geoff Moody


Filed under: Economic Impact

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