The Biden administration has asked Congress for a larger defense budget as it submits its federal spending and revenue plan for next year. According to The New York Times: “Mr. Biden will request $813.3 billion in national security spending, an increase of $31 billion, or 4 percent, from 2022, according to people familiar with the proposal.”
The United States spent more on its military last year than any other nation in the world, almost $800 billion. That is well ahead of second-place China at $252 billion. Russia spent $62 billion in the same year.
Several of the largest defense contractors are already among America’s largest employers. Twenty of these companies have revenue over $30 billion a year, according to a 24/7 Wall St. analysis. Worldwide, “The 100 largest military contractors sold $531 billion in arms and military services, a 1.3% increase compared to 2019, according to SIPRI,” according to the research. The top U.S. company is Lockheed Martin, with 2020 revenue of $65 billion.
The defense and aerospace industries already employ over 2 million people in the United States. They are well paid. The AIA puts their pay at 41% higher than the national average.
Like almost every industry, defense will face a very tight jobs market. It is estimated that the March unemployment numbers will show America added 400,000 jobs and that the unemployment rate will drop to 3.7%. In February, the economy added 478,000 jobs and the rate fell to 3.8%.
The defense budget, if it passes, will mean that these companies will not only need workers but will need highly skilled ones. Complex engineering and manufacturing employees are not readily available. Competition for this talent likely will cost industry companies more money than in the past. However, new military equipment contracts may well offset that.
Click here to see which countries have the largest militaries.
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