Economic Impact Study
In 2015, the Texas Music Office commissioned the first of a series of biennial studies on the impact of the music business on the Texas economy. In 2023, the Texas Music Office continued its work with Jon Hockenyos and his team of economists at TXP, Inc. to update the original study, which was completed at the end of 2022.
As the 5th TMO economic impact study is being written in December 2022, the impact of the pandemic is receding as the year comes to a close, and, with patrons willing and able to return to bars, festivals, concerts, and other performance venues where live music is found. This welcome turn of events is set against the backdrop of gathering clouds on the economic horizon, as stubbornly high inflation has yielded much tighter monetary policy, which presages recession. Nevertheless, there are clear signs that music is back, as the economic impact roughly matches that prior to COVID-19. However, there is some variation from previous analysis. Specifically, the number of overall jobs associated with music in Texas has declined, albeit with the jobs that remain paying higher wages. This has little to do with music per se, but likely instead reflects broader trends in the overall labor market.
The return on investment associated with economic development is normally a longer-term payback, as external events tend to drive the fortunes of a regional economy in the near term, which the COVID-19 pandemic clearly showed. However, the outlook for Texas remains bright, not the least due to the strong influx of both firms and people in recent months. Much of Texas’ future will depend on what has brought so many here recently; a highly capable workforce, innovation and entrepreneurship, clusters in knowledge industries, the presence of world-class research universities and other institutions of higher learning, and public policy that supports growth and development.
Moreover, music is a crucial element of “Brand Texas” that draws visitors from across the globe, a key element of recovery post-pandemic for the hospitality sector. As Texas looks to its economic development future, the creativity expressed through music is a fundamental comparative advantage – the goal remains to identify the key investments, policies, and regulatory changes that can support the monetization necessary for sustainability and growth.
- Combined, music business and music education directly account for just under 90,000 permanent jobs, $4.6 billion in annual earnings, and just over $10.8 billion in annual economic activity, comparable to the results pre-pandemic.
- The ripple effects associated with the direct injection related to music business and music education bring the total impact (including the direct effects) to over 192,000 permanent jobs, $9.4 billion in earnings, and $26.6 billion in annual economic activity. The State of Texas also realizes approximately $470 million in tax revenue from these impacts.
Participation in the Texas Music Office's "Music Friendly Community" program provides Texas communities with a network for fostering music industry development, and sends a clear message to industry professionals that certified communities are serious about attracting and developing music industry growth.
The Texas Music Office is the State of Texas' official economic development office for the Texas music industry, and the office's resources are an unparalleled source of information into why the Texas Music industry annually has a multi-billion dollar economic impact on the state's economy.
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