Assignment 2: Economic Brief on Education Industry

Assignment 2: Economic Brief on Education Industry
Student’s Name
ECO 100: Principles of Economics
Professor’s Name
Date
Assignment 2: Economic Brief on Education Industry
Introduction
The Education industry is one of the industries with the highest GDP growth in the United States. In the United States, this sector plays a crucial role ranging from printing and distribution of educational resources to students at all levels to their tutors. Today, the educational service industry is experiencing tremendous growth with emerging multiple types of opportunities for franchisees. The Bureau of Labor Statistics (BLS) reports that the education service industry employs over 3.5 million people in the United States alone and contributes about 30% of the country’s GDP annual growth (BLS.gov, n.d.). This brief presents an overview of the education service industry with the goal of analyzing the macroeconomic aspects of its GDP growth and its potential for the United States.
Education Industry Size and its Growth
The Bureau of Economic Analysis (BEA) reports that the United States is the leading country when it comes to expenditures on education. The country is actively involved in preparing young people for employment and economic development in the country. The Bureau of Economic Analysis reported in 2017 that Education in the United States was valued at $1, 350 billion (Zak, 2018). This is a significant value and it is expected to increase every year. Some of the factors behind this growth are increased enrolment in education and population increase.
Why GDP is Important and how it affects Education Industry
Education has a significant impact on GDP growth and this is the reason why a country would go a long way to increase the resource allocation to this sector. Access to education increases creativity an...