U.S. High-Tech Industry Adds Jobs for Fourth Straight Year in 2008

April 2, 2009

77,000 Jobs Added in 2008; Job Losses Hit in Fourth Quarter

Washington, DC – March 31, 2009 – TechAmerica, formed by the merger of AeA and the Information Technology Association of America (ITAA), today released its 12th annual Cyberstates report, which includes a first-ever supplement with a 3rd and 4th quarter breakdown of 2008 tech employment.  Fourth quarter data show the tech industry’s resilience compared to the U.S. economy as a whole, having sustained only a 0.6 percent drop in employment, or 38,000 jobs, in Q4 2008 when total private-sector employment declined by 1.3 percent.

The high-tech industry has added 382,900 jobs to the U.S. economy over the last four years.  The industry added 77,000 net jobs in 2008, for a total of 5.9 million workers.  This was on top of 79,600 added in 2007, 139,000 in 2006, and 87,400 in 2005.

The U.S. high-tech industry continued to add jobs in 2008; however, future growth is clearly jeopardized as a result of the current economic downturn and the volatility of global financial markets, said Christopher W. Hansen, CEO of TechAmerica. While we suffered losses in the fourth quarter, our industry has weathered the storm better than most, and the results of our report indicate that the tech industry is well positioned to help lead America’s economic recovery.

TechAmerica pointed to the technology initiatives and investments in the American Recovery and Reinvestment Act – the federal stimulus package – as further evidence of the leading role of technology in powering economic growth and job creation.

In crafting the stimulus bill, Congress and the Obama Administration put their trust in the transformative power of technology to build infrastructure for the 21st century, modernize our education and healthcare systems, and create smarter and more efficient ways to use energy, said Phillip J. Bond, President of TechAmerica. The results of our Cyberstates report show that they have chosen wisely – technology investments will foster new economic growth at the state, local, and national levels.

With our 50-state advocacy network, Bond went on to note, TechAmerica is already on the ground to assist governments at all levels in their economic recovery efforts, and we remain uniquely positioned to track and report on the technology industry’s efforts to aid America’s economic recovery.

2008 was the fifth straight year of employment gains in the tech industry’s two strongest sectors – software services, which added 86,200 net jobs, and engineering and tech services, which added 26,600 net jobs. The downside is that the other two technology sectors saw net employment losses in 2007. High-tech manufacturing shed 23,100 jobs and communications services shed 12,700 jobs.

Cyberstates 2009 includes state-by-state data, the most recent available from 2007, and shows that 39 cyberstates experienced net tech job growth. The largest gains occurred in Texas (+14,700), Georgia (+13,100), Washington (+11,300), North Carolina (+5,500), and Virginia (+5,300). On a percentage basis, Kansas saw the fastest job growth in 2007 at 8.1 percent.

For the fourth straight year, Virginia led the nation with the highest concentration of tech workers – 92 of every 1,000 private sector workers in the state were employed in the tech industry. Virginia was followed by Massachusetts and Colorado.

Cyberstates 2009 relies on data from the U.S. Bureau of Labor Statistics. The report provides 2008 national data on tech employment as well as 2007 national and state-by-state data on high-tech employment, wages, establishments, payroll, wage differential, and employment concentration. All data are the most recent available at the time of publication.

Two other major TechAmerica cyber reports that analyze the U.S. high-tech industry are forthcoming: Cybercities 2009: An Overview of the High-Technology Industry in the Nation’s Top 60 Cities and Trade in the Cyberstates 2009: A State-by-State Overview of High-Tech International Trade.

Cyberstates 2009 may be purchased for $150.  The quarterly supplement may be freely downloaded. Both reports may be accessed at: www.techamerica.org/cyberstates.

Cyberstates 2009 Key National Findings

(national data is for 2008, national wage data is for 2007)

  • U.S. high-tech employment totaled 5.9 million in 2008.
  • Tech employment was up in 2008 by 77,000 or by 1.3 percent.
  • High-tech manufacturing employment fell by 1.3 percent, losing 23,100 jobs between 2007 and 2008.
  • The semiconductor industry lost the most jobs of any manufacturing sector, 10,900 in 2008.
  • Six of the nine tech manufacturing sectors lost jobs in 2007.  Only the communications equipment, defense electronics, and electromedical equipment sectors added jobs.
  • The communications services sector continued to shed jobs in 2008, albeit at a faster pace, losing 12,700 compared to a loss of 7,200 in 2007.
  • The software services industry added 86,200 jobs in 2008, up for the fifth year in a row.
  • The engineering and tech services industry added 26,600 jobs in 2008, also up for the fifth year in a row, putting it at an all time high.
  • The unemployment rate for electrical engineers was 2.5 percent in 2008 and 2.7 percent for computer and math occupations.
  • The tech industry paid an annual average wage of $83,300 in 2007, 88 percent more than the average private sector wage of $44,400.

U.S. High-Tech Employment

High-Tech Sector                        2007                2008                 Percent Change             Numeric Change

High-Tech Manufacturing         1,289,100         1,266,000         -1.8%                                 -23,100
Communications Services       1,326,600         1,313,800         -1.0%                                -12,700
Software Services                      1,619,400          1,705,600         +5.3%                               +86,200
Engineering & Tech Services  1,610,800          1,637,500         +1.7%                                +26,600
Total High Tech                          5,845,900          5,922,900         +1.3%                                 +77,000
 


 

Cyberstates 2009 Key State Findings
(all state data is for 2007)

  • The leading states by high-tech employment in 2007 were California (942,700), Texas (474,100), New York (304,200), Florida (280,300), and Virginia (276,100).  2007 data are the most recent available at the state level.
  • Texas led the nation in net tech job creation in 2007, adding 14,700 jobs.  The next largest gains occurred in Georgia (+13,100 ), Washington (+11,300), North Carolina (+5,500), and Virginia (+5,300).
  • For the third straight year, Virginia led the nation in concentration of high-tech workers in 2007, with 92 high-tech workers per 1,000 private sector workers.
  • Forty-eight cyberstates have annual average high-tech wages that are 50 percent or higher than the average private sector wage in their respective state, and five cyberstates have wages that are 100 percent higher.

Note:  Data are rounded.

Source: Cyberstates 2009 is based on U.S. Bureau of Labor Statistics data.

 


About TechAmerica

TechAmerica is the leading voice for the U.S. technology industry, the driving force behind productivity growth and jobs creation in the United States and the foundation of the global innovation economy.  Representing approximately 1,500 member companies of all sizes from the public and commercial sectors of the economy, it is the industry’s largest advocacy organization and is dedicated to helping members’ top and bottom lines. It is also the technology industry’s only grassroots-to-global advocacy network, with offices in state capitals around the United States, Washington, D.C., Europe (Brussels) and Asia (Beijing).  TechAmerica was formed by the merger of AeA (formerly the American Electronics Association), the Cyber Security Industry Alliance (CSIA), the Information Technology Association of America (ITAA) and the Government Electronics & Information Technology Association (GEIA).  Learn more at http://www.techamerica.org/.