The economic footprint of the U.S. gun industry in 2025 is overwhelming, with data showing record-high impacts on jobs, wages, and tax revenues nationwide.
Below is a comprehensive update of the sector’s current influence, covering direct and indirect employment, average wages, total economic impact, tax contributions, and leading states by job creation and output.
Overview: Firearms Industry in 2025
The U.S. firearms and ammunition industry remains a significant force in the American economy, generating nearly $92 billion in annual economic output and supporting almost 383,000 jobs in 2025. This broad footprint includes direct roles in manufacturing, distribution, and retail, as well as indirect jobs created through supply chains and associated industries.
Jobs Created by Gun Sales and Manufacturing
Firearms industry employment is at an all-time high. In 2025:
- Direct employment in manufacturing, distribution, and retail: approximately 150,668 full-time positions.
- Indirect employment (supplier and supporting industries): about 232,327 additional jobs, making the total sector employment 382,995.
- Average wage and benefits: $68,300—a figure well above many other sectors.
- While gun/ammo manufacturing alone directly employs about 49,350 workers, the industry’s broader impact—including retail and distribution—is much larger.
The industry has seen a dramatic 130% increase in jobs since 2008, when employment stood at 166,000.
Wage Impact
The combined wages paid to workers across the direct, supplier, and ancillary categories in 2025 reach over $26.1 billion.
- Direct wage total: $8.8 billion.
- Supplier wage total: $9.1 billion.
- Ancillary wage total: $8.3 billion.
- These wages are cycled back into local and state economies, supporting small businesses, services, and additional consumer activity.
Economic Output
The firearms industry’s total economic impact in 2025 reached $91.7 billion, an increase of nearly 400% from $19.1 billion in 2008. This accounts for direct, supplier, and induced economic activity:
- Direct economic output: $34.1 billion.
- Supplier economic output: $30.6 billion.
- Induced economic output: $26.9 billion.
The gun industry’s growth, even during periods of softer consumer demand, has remained robust, cementing its place as a significant economic driver.
Top States by Jobs and Output
The states leading in firearms industry jobs and economic output in 2025 are virtually unchanged from prior years:
- California: 13,086 direct jobs.
- Texas: 11,630 direct jobs.
- Florida: 9,393 direct jobs.
- Pennsylvania: 7,398 direct jobs.
- Ohio: 5,847 direct jobs.
Dominance is also seen in total output, with Texas, California, Minnesota, Florida, and Illinois regularly occupying the top positions.
Federal and State Tax Contributions
The arms and ammunition industry continues to be a reliable source of government revenue:
- Total annual taxes paid (federal, state, local): $10.97 billion in 2024.
- Federal business taxes: $6.6 billion.
- State business taxes: $4.4 billion.
- Federal excise taxes: $886 million in 2024, the bulk of which feeds into the Pittman-Robertson Wildlife Restoration Fund, vital for wildlife conservation.
These figures represent tax increases of well over 100% compared to 2008 levels.
Gun Sales Trends and NICS Checks
Although gun sales have declined slightly from pandemic-era highs, they remain formidable:
- Estimated annual gun sales in 2025: trending at over 20 million based on NICS background checks and quarterly trends.
- Quarter 1 of 2025 alone saw 5.2 million guns sold.
Manufacturing Output
While ATF data for 2025 is still forthcoming, the industry's manufacturing strength continues to ensure the U.S. leads in global firearms production:
- Projected 2025 manufacturing revenue: $19.6 billion (including military sales).
- Civilian market estimates suggest about $9–10 billion in annual revenue.
Growth Since 2008
Both employment and total economic impact in the firearms industry have far outpaced broader economic growth:
- Job growth: up 130% since 2008.
- Economic output: up 379% since 2008.
- Wages: more than quadrupled over the same span.
Federal Firearms Licensees
The number of federal firearms licensees continues to hover near 137,000, facilitating widespread commerce and distribution across the U.S..
Key Takeaways for 2025
The U.S. firearms and ammunition industry supports nearly 383,000 American jobs, pays $26 billion in wages, and contributes over $91 billion to the nation's economy.
Significant tax revenues, exceeding $10.9 billion annually, are funneled to federal, state, and local governments.
States like Texas, California, and Florida are leading both in job creation and economic output, reinforcing the industry’s nationwide reach.
Despite a competitive and highly scrutinized environment, firearms manufacturing, sales, and related employment remain pillars of many local and state economies.
For all the polarization surrounding gun policy, the numbers make one reality clear: the firearm and ammunition industry holds a central place in America’s 2025 economic story.
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About The Author Jake Smith (@notjakesmith) is a copywriter and photographer based in the pacific northwest. He graduated from the University of Idaho with degrees in public relations and apparel. |