A February study from the Association of American Railroads (AAR) shows that the U.S. rail transportation industry contributed $233.4 billion to the economy in 2023, supporting nearly 750,000 jobs.
“Railroads are a key pillar of American commerce, powering our supply chains and driving economic growth nationwide,” AAR President and CEO Ian Jefferies said in a February 28 release announcing the study’s results. “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.”
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Among the study’s findings:
- Freight railroads invested $26.8 billion in capital improvements in 2023 alone, modernizing their operations, enhancing safety, and expanding long-term growth opportunities for businesses nationwide. These investments have a ripple effect on the U.S. economy, with every $1 invested in rail transportation driving $2.50 in economic activity, according to the study.
- Nearly 40% of all rail traffic–11.3 million shipments–were directly tied to trade-related activity connecting domestic producers to international markets in 2023.
- Every railroad job supports 3.9 additional jobs in industries such as manufacturing, logistics, and technology.
- In 2023, rail transportation directly employed 153,000 highly skilled workers whose total compensation exceeds the national average. When factoring industries railroads support and household spending effects, rail transportation supported a total of 749,000 nationwide, generating $66.1 billion in household income for 2023.
