WASHINGTON — U.S. railroads generated more than $233 billion in economic activity and support almost 750,000 jobs nationwide, the Association of American Railroads says in a new report on the economic impact of the rail industry in 2023.
“Railroads are a key pillar of American commerce, powering our supply chains and driving economic growth nationwide,” AAR CEO Ian Jefferies said in a press release announcing the report. “With billions invested annually and a highly skilled workforce, railroads generate economic activity that extends from major industries to small businesses across the country. This study confirms that today’s rail investments build tomorrow’s jobs and prosperity.”
The report released Friday, Feb. 28, says that while railroads employ 153,000 workers, each one of those jobs creates 3.9 additional jobs in related industries such as manufacturing and logistics. Overall, the industry supports some 749,000 jobs, generating $66 billion in household income. In the top five states for rail employment — Texas, California, Illinois, Nebraska and Georgia — the total household impact, based on that 3.9 job multiplier, is $21.2 billion.
Every dollar spent on rail transportation generates $2.50 in economic activity, according to the report, leading to total activity of $233.4 billion. The year saw railroads pay some $25.1 billion in taxes to federal, state, and local governments; and spend $26.8 billion in infrastructure and other reinvestment.
Some $29.8 billion in rail revenue — or 37% of Class I earnings — was related to international trade, the report says, as well as 38% of rail traffic. Railroads handed 543.5 million tons of goods arriving at U.S. ports or crossing borders by rail.
The full 35-page report is available here.
