As an Amazon Associate we earn from qualifying purchases.
NASA continues to be a powerful economic engine for the United States, generating substantial employment and economic activity across the nation. According to a comprehensive economic impact study for Fiscal Year 2023, NASA’s activities contributed $75.6 billion to the U.S. economy and supported over 304,800 jobs nationwide.
Direct Employment and Economic Contribution
NASA directly employs 17,823 full-time equivalent (FTE) civil servants across its facilities, with annual wages and benefits totaling more than $3.5 billion. The average NASA civil servant earns $197,283 annually – nearly 269% higher than the U.S. average of $73,416, reflecting the highly skilled nature of NASA’s workforce.
However, NASA’s economic impact extends far beyond its direct employment. For every NASA civil service job, at least 16 additional jobs are supported throughout the U.S. economy. This impressive multiplier effect stems from:
- $23.3 billion in procurement spending with contractors
- $3.516 billion in direct labor income
- $98 million in purchase card transactions
Geographic Distribution of Impact
The economic benefits of NASA’s activities are spread across the country, though ten states capture approximately 90% of the total employment impact:
- California
- Texas
- Florida
- Alabama
- Maryland
- Virginia
- Colorado
- Ohio
- Mississippi
- Washington
Moon to Mars Campaign Impact
A significant portion of NASA’s economic influence comes from the Moon to Mars (M2M) campaign, which accounts for approximately 32% of the agency’s overall U.S. impact. The M2M initiative employs 2,749 NASA civil servants and generates $7.7 billion in procurement activity.
Key highlights of M2M’s economic impact include:
- 96,479 total jobs supported
- $8.6 billion in annual labor income
- $23.8 billion in economic output
- $2.9 billion in federal, state, and local tax revenues
Climate Change Research Investment
NASA’s investments in climate change research and technology represent another crucial component of its economic impact, accounting for approximately 11% of the agency’s overall impact. This program:
- Employs 2,009 NASA civil servants
- Provides $382 million in annual wages and benefits
- Generates $2.4 billion in procurement activity
- Supports 32,900 total jobs
- Contributes $7.9 billion in economic output
- Generates $1 billion in tax revenues
Sector-Specific Impacts
The scientific research and development services sector benefits most significantly from NASA activities, accounting for 19% of total NASA impacts. The top ten most impacted sectors collectively represent 47% of total NASA employment impacts.
Tax Revenue Generation
NASA’s activities generate substantial tax revenue for government at all levels. The agency’s operations contribute an estimated $9.6 billion in annual federal, state, and local tax revenues throughout the U.S.
Multiplier Effects
The study reveals impressive economic multipliers that demonstrate NASA’s catalytic effect on the broader economy:
- Employment: Each NASA civil service job supports at least 16 additional jobs
- Labor Income: Every million dollars in NASA civil service labor income generates an additional $6.8 million in labor income throughout the economy
- Output: Each million dollars of NASA output produces an additional $8 million in economic output
State-Level Impact Examples
The economic benefits of NASA activities vary significantly by state. For example:
- Alabama: Heavily impacted by the M2M campaign, with over half of its NASA-related economic activity tied to this initiative
- California: Receives the largest share of NASA’s economic impact, with significant activity in both M2M and climate change research
- Texas: Houses major NASA facilities and benefits substantially from both direct employment and contractor activity
- Florida: Benefits significantly from Kennedy Space Center operations and launch activities
Future Growth Potential
NASA’s economic impact is expected to continue growing as the agency pursues ambitious goals including:
- The Artemis program to return humans to the Moon
- Development of sustainable lunar presence
- Preparation for future Mars missions
- Ongoing climate change research and monitoring
- Advanced aeronautics research
Research and Development Benefits
NASA’s R&D activities create ripple effects throughout the national economy by:
- Supporting high-tech industries
- Creating knowledge-intensive jobs
- Developing new technologies
- Transferring innovations to private businesses
- Improving U.S. global competitiveness
- Advancing scientific knowledge
Facility Network Impact
NASA’s network of research centers, flight centers, and specialized facilities contributes to economic activity through:
- Specialized research capabilities
- Testing and validation services
- Manufacturing and assembly operations
- Technology development
- Safety and mission assurance activities
- Educational programs
Summary
The economic impact study demonstrates NASA’s important role not just in space exploration and scientific research, but as a major driver of economic activity across the United States. The agency’s $75.6 billion contribution to the economy, support of over 304,800 jobs, and generation of $9.6 billion in tax revenues underscore its importance to the nation’s economic vitality.
Through its direct employment, procurement spending, and multiplier effects, NASA continues to stimulate economic growth, support high-skilled jobs, and generate substantial tax revenues across the country. The agency’s major initiatives, particularly the Moon to Mars campaign and climate change research, create additional economic benefits while advancing crucial scientific and exploration goals.
