US Business Trends

What government data reveals about how the American business landscape is changing, industry by industry, state by state.

The Shift in Industry Composition

Census Bureau County Business Patterns data tracked on PlainBizBench reveals a long-term shift in the US economy from goods-producing industries (manufacturing, mining, construction) toward service-producing industries (healthcare, professional services, technology, finance). While this trend has been underway for decades, the pace and pattern vary significantly by state and industry sector.

Manufacturing employment has declined in total count but productivity per worker has increased dramatically. Healthcare and social assistance have become the largest employment sector in many states. Professional and technical services have grown fastest in metropolitan areas. Browse sector pages on PlainBizBench to see employment trends by sector.

Largest U.S. industries by employment

Total employees (thousands), NAICS 3-digit industries

Administrative and Support Se…12,961KFood Services and Drinking Pl…12,645KProfessional, Scientific, and…10,401KAmbulatory Health Care Servic…8,697KHospitals6,344KSpecialty Trade Contractors4,987K

Profit Margin Trends

IRS Statistics of Income data shows that average profit margins vary significantly by economic cycle. During expansion periods, margins tend to widen across most sectors as revenue grows faster than fixed costs. During contractions, margins compress. However, the relationship is not uniform, some industries (healthcare, utilities) show relatively stable margins while others (retail, hospitality) are highly cyclical.

The most profitable industries by margin consistently include professional services (legal, accounting, consulting), real estate, and technology, sectors where revenue is less capital-intensive and human expertise commands premium pricing. Use PlainBizBench's rankings page to see current profit margin leaders across all industries.

Highest-margin U.S. industries

Pre-tax net income ÷ total receipts, NAICS 3-digit industries

Funds, Trusts, and Other Fina…68.7%Real Estate21.7%Lessors of Nonfinancial Intan…19.5%Credit Intermediation and Rel…18.7%Wholesale Electronic Markets …17.1%Beverage and Tobacco Product …13.7%

Regional Economic Divergence

State-level data on PlainBizBench reveals increasing economic divergence across regions. Coastal metropolitan areas have seen disproportionate growth in high-margin, knowledge-intensive industries. Interior states have maintained strength in agriculture, energy, and logistics but face challenges as manufacturing automation reduces employment in traditional strongholds.

Payroll per employee data, a proxy for compensation levels, shows this divergence clearly. The gap between the highest-paying states (Massachusetts, Connecticut, New York, California) and the lowest-paying states has widened over time, reflecting both industry mix differences and geographic wage premiums in high-cost markets. Browse state pages to compare your market.

Highest average payroll per employee, by industry

Annual payroll ÷ employees, NAICS 3-digit industries

Securities, Commodity Contrac…$260,466Oil and Gas Extraction$192,366Publishing Industries (except…$177,093Funds, Trusts, and Other Fina…$173,124Data Processing, Hosting, and…$147,665Management of Companies and E…$128,997

Related Guides

Understanding Profit Margins by Industry

What margins mean and how to compare

Industry Employment Trends

Growing and shrinking industries

Sources: IRS, Statistics of Income; U.S. Census Bureau, County Business Patterns.