Arts and Cultural Sector Outpaces Broader Economy in 2023

National Growth in Arts and Cultural Production

According to statistics released by the U.S. Bureau of Economic Analysis, inflation-adjusted arts and cultural economic activity rose 6.6 percent in 2023, following a 3.8 percent increase the previous year. This performance exceeded the growth of the overall economy, which expanded 2.9 percent in 2023 after a 2.5 percent gain in 2022. The data underscore the sector's resilience amid broader economic conditions.

In nominal terms, value added for arts and cultural production increased 7.6 percent nationally. This expansion brought the sector's total contribution to $1.17 trillion, equivalent to 4.2 percent of gross domestic product. The figures reflect both direct production within cultural industries and related supporting activities that facilitate cultural output.

Performance of Core and Supporting Industries

Core arts and cultural production industries, encompassing performing arts, museums, design services, fine arts education, and education services, recorded a 5.5 percent real increase in value added during 2023. Supporting industries, which include art support services and information services, grew at a faster 7.1 percent pace on an inflation-adjusted basis. These divergent growth rates contributed to the overall expansion of the sector.

Among core industries, museums posted the strongest real gain, advancing 18.0 percent after a 12.0 percent decline in 2022. Design services increased 6.3 percent, while education services rose a more modest 1.8 percent. Performing arts grew 3.5 percent, a slowdown from the 24.9 percent surge recorded the prior year. Within performing arts, companies saw particularly robust nominal growth of 31.6 percent in 2023.

Supporting industries were the primary driver of the nominal increase in arts and cultural value added, rising 6.8 percent to reach $873.8 billion. Information services accounted for much of this expansion. Core industries, by contrast, increased 10.6 percent nominally to $265.8 billion, with performing arts and design services serving as leading contributors.

State-Level Variation in Value Added

At the state level, nominal value added for arts and cultural production rose in 47 states and the District of Columbia. Growth rates ranged widely, from a 14.7 percent increase in Nevada to a 3.4 percent decline in Louisiana. Such dispersion highlights the uneven geographic impact of economic forces affecting cultural activity.

In Nevada, which experienced the largest gain, promoters of performing arts and similar events, along with publishing and performing arts companies, were the main contributors to higher value added. Louisiana's decline was driven primarily by weakness in motion pictures. These examples illustrate how specific industry concentrations can shape state outcomes.

The share of arts and cultural production in total state GDP varied considerably. Washington recorded the highest proportion at 9.8 percent, followed by the District of Columbia, New York, California, and Nevada, all exceeding 5 percent. Most states fell between 2 and 5 percent, while Delaware had the lowest share at 1.2 percent. Leading industries also differed by jurisdiction, with publishing and retail prominent in Washington, government and advertising in the District of Columbia, and broadcasting plus other information services in New York.

Employment and Compensation Trends

Nationwide arts and cultural employment edged up 0.3 percent in 2023, reaching a total of 5.4 million jobs. Growth occurred in 27 states, with North Carolina posting the largest increase at 7.6 percent and Hawaii experiencing the steepest decline of 6.6 percent. Government and retail industries contributed to North Carolina's employment gains, whereas construction and motion pictures weighed on Hawaii's figures.

Compensation in the arts and cultural sector increased 3.6 percent nationally. This measure rose in 43 states and the District of Columbia, ranging from a 12.7 percent gain in Nevada to a 6.9 percent drop in Georgia. The data suggest that while employment growth was modest, compensation trends reflected somewhat stronger upward pressure in many areas.

North Carolina's arts and cultural jobs totaled 167,254, representing 3.3 percent of statewide employment. The contrast between employment and compensation movements across states points to differences in industry composition, wage levels, and economic conditions that warrant further examination as additional data become available.

Methodology and Future Releases

The 2023 statistics incorporate new and updated source data along with results from the 2024 annual update of national and regional economic accounts. Earlier years from 1998 to 2016 were revised to reflect the 2023 comprehensive update of those accounts, combined with arts and cultural production-specific information. These revisions aim to improve the accuracy with which the satellite account captures sector dynamics.

The Bureau of Economic Analysis produces the Arts and Cultural Production Satellite Account with support from the National Endowment for the Arts. Updated national figures on output, value added, intermediate inputs, employment, and compensation extend back to 1998, while state-level data on value added, employment, and compensation begin in 2001. The next release, covering 2024, is scheduled for March 2026.

Source

U.S. Bureau of Economic Analysis published this record on 2025-04-02. Pennington Financial accessed it on 2026-10-25.