Tuesday, March 31, 2009

Report: Tech Weathers Economic Storm

The U.S. high-tech sector has weathered the economic storm better than most industries, Technology Association of America President Phil Bond told reporters at a Monday press conference to unveil the trade group's annual state-by-state overview of the technology business. While the 2009 outlook remains clouded with uncertainty, "we're convinced that the tech sector is positioned to contribute to the U.S. economic recovery," he said. Bond other officials from the organization, which was formed when the Information Technology Association of America and American Electronics Association merged, laid out a number of facts and figures to support their notion.

In crafting the economic stimulus bill, Congress and the Obama administration embraced the transformative power of technology for building the infrastructure for the 21st century; modernizing education and healthcare systems; and creating smarter and more efficient ways to use energy, officials said. "We believe it when we say future begins here," Bond said. "We think public policy in the United States has underscored that innovation is America's greatest resource."

According to the 2008 Cyberstates report:

• The U.S. high-tech industry employment was up for the fourth straight year in 2008, adding 77,000 jobs, a 1.3 percent increase.
• Tech sectors adding jobs included software services (+86,200) and engineering and tech services (+26,600).
• Tech sectors shedding jobs included tech manufacturing (-23,100) and communications services (-12,700).
• Nationwide, average high-tech wages were 88 percent higher than the average private sector wage.
• Unemployment rates inched up for several tech occupations in 2008, but remained relatively low - 2.4 percent for computer scientists and 2.5 percent for engineers.

• The U.S. high-tech industry gained jobs for the better part of 2008, then lost 38,000 jobs in the 4th quarter.
• Q4 job loss in the tech industry was nearly half the rate of U.S. private sector job loss, -0.6 percent compared to -1.3 percent.
• High-tech manufacturing, communications services, and engineering and tech services all experienced employment declines from the 3rd to the 4th quarter.
• Software services was a bright spot for the tech industry, growing its workforce by 12,600 jobs, or 0.7 percent, in Q4.
• High-tech jobs lost represented 2.5 percent of total private sector job loss in the 4th quarter, while the tech industry represents 5 percent of total private sector employment.

State-by-state data, which is based on 2007 figures from the Bureau of Labor Statistics, show that California ranked first for high-tech jobs, followed by Texas, New York, Florida and Virginia, TechAmerica research director Josh James said. Massachusetts, Illinois, New Jersey, Pennsylvania and Georgia rounded out the top 10.