Biopharma brings $1.2 trillion, supports 4.5m U.S. jobsStaff writer ▼ | May 18, 2016
The biopharmaceutical industry supported nearly 854,000 direct jobs and another 3.5 million jobs and more than $1.2 trillion in economic output in the United States in 2014.
Analysis According to state and national data
The report, which analyzed state and national data across the large-scale biopharmaceutical sector supply chain, highlights how the discovery, development and delivery of innovative medicines translate into higher-wage jobs, increased tax revenue and greater economic output in our local communities.
The biopharmaceutical sector in the United States spurs economic activity and generates jobs across a whole range of sectors, from vendors and suppliers to the economic activity of its workforce.
These benefits are felt far beyond individual biopharmaceutical companies and are built upon a robust foundation of innovation-led U.S. companies that sustain a diverse and large-scale supply chain for the development, production and distribution of treatments and cures to patients.
Key findings from this examination of the broad biopharmaceutical value chain include the following:
Close to 4.5 million U.S. jobs. The biopharmaceutical sector's high job multiplier—for every one job, another 4.21 are supported across the economy—translates into nearly 4.5 million jobs in the United States in 2014.
This is including close to 854,000 direct jobs and another 3.5 million additional jobs through vendors and suppliers to the biopharmaceutical sector and with businesses that serve its employees in sectors ranging from transportation and construction to health care and information technology.
More than $1.2 trillion in economic output. The biopharmaceutical sector's economic output, which represents the value of the goods and services produced by the sector, totaled more than $558 billion in the United States in 2014.
The sector also supported another $659 billion through its vendors and suppliers and through the economic activity of its workforce, for a total of $1.2 trillion.
Nearly $311 billion paid in wages and benefits. U.S. workers in jobs supported by the biopharmaceutical sector were paid a total of nearly $311 billion in wages and benefits in 2014.
Annual average compensation of $123,108. Employees in direct biopharmaceutical sector jobs earn an average salary of $123,108, more than twice the average $57,149 annual salary for all other U.S. jobs.
These employees provide an average of $653,971 in annual economic output, compared to $171,600 for employees across all U.S. job sectors.
One-third of workers in STEM occupations. One-third of the biopharmaceutical industry's workers are in key science, technology, engineering and mathematics (STEM) occupations. ■