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Government Sector

10 Pages First Research, Inc. June 08, 2015 SKU: FRRS5580411

Government Sector

Brief Excerpt from Industry Overview Chapter:

Agencies in this sector administer government services at the federal, state, or municipal level. The largest US government agencies by employment include the federal Department of Defense, Department of Veterans Affairs, Department of Homeland Security, Department of Justice, and Department of the Treasury.

Worldwide, there are some 195 nations with independent governmental administrations, as well as more than 70 dependent areas or territories. Government spending by all nations is about $25 trillion.

The US government services sector consists of more than 90,000 state and local governments as well as more than 400 federal government agencies, departments, and commissions. Combined spending by these entities is about $7 trillion; the federal government accounts for more than half of that total.

US state-specific data can be found in First Research's State profiles, for all 50 states and Washington, DC. Profiles also are available for Canadian provinces.


Demand for government services is driven by population growth and changing demographics of the US population. The US Census Bureau estimates that the 65-and-over population will climb by more than 60 percent between 2015 and 2035, which will increase the demand for federal programs like Social Security and Medicare. State and local governments experience similar demand drivers, but face increasing or decreasing revenues from which to fund services based on shifts in the population.


Major government services include creating and enforcing policies and laws, providing operating services, building and maintaining infrastructure, and providing...

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Government Sector

First Research, Inc.
June 08, 2015

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