TechAmerica Foundation : U.S. High-Tech Industry Sheds 245,600 Jobs in 2009

U.S. High-Tech Industry Sheds 245,600 Jobs in 2009

Most Recent State Data Show 2008 Gains in Texas as Recession Unfolded

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Josh James, Director, Research and Industry Analysis (research-based inquiries)
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Washington, DC (April 28, 2010) – TechAmerica Foundation today released its 13th annual Cyberstates report detailing national and state trends in high-tech employment, wages, and other key economic factors. The report, Cyberstates 2010: The Definitive State-by-State Analysis of the High-Technology Industry, covers all 50 states, the District of Columbia, and Puerto Rico.

Nationally, the high-tech industry lost 245,600 jobs in 2009, for a total of 5.9 million workers. This recession–induced, four percent decline in tech employment is slightly lower than the five percent decline experienced by the private sector as a whole and follows four years of steady growth in tech industry employment.

Texas saw the second largest high-tech employment gains in the nation in 2008 even as the recession gathered steam. The addition of 14,600 high-tech jobs brought the industry total to 492,400 in 2008 – the most current year for which state data are available. Texas remains the second-largest cyberstate by tech employment, behind California and ahead of New York. Additionally, the high-tech industry in Texas paid out $41.8 billion in payroll in 2008. The Texas average tech industry wage in 2008 was $84,800 – 82 percent higher than the state’s average private sector wage.

The largest tech employment gains in Texas took place in computer systems design and related services (+9,200 jobs), followed by engineering services (+4,400 jobs), and R&D and testing labs (+2,300 jobs). A high-tech industry leader, Texas ranked among the top three in terms of employment in 10 of 15 high-tech sectors.

“The fact that Texas’s tech industry was adding jobs in 2008 amidst the recession is a testament to its strength,” said Jeff Clark, Executive Director, TechAmerica Texas. “However it is unlikely Texas will avoid job loss in 2009, as the national data indicate that is when the full force of the recession hit the tech industry.”

Two other major TechAmerica Foundation cyber reports are forthcoming that analyze the U.S. high-tech industry: Cybercities 2010: An Overview of the High-Technology Industry in the Nation’s Top 60 Cities, and Trade in the Cyberstates 2010: A State-by-State Overview of High-Tech International Trade.

TechAmerica Foundation would like to thank Grant Thornton for the generous underwriting of this report. Cyberstates 2010 may be purchased for $150. The quarterly supplement may be freely downloaded. Both reports may be accessed at:

What Does High Tech Mean for Texas?

  • 492,400 high-tech workers in 2008 (2nd ranked cyberstate)
  • 14,600 jobs added between 2007 and 2008
  • High-tech firms employed 57 of every 1,000 private sector workers in 2008, ranked 16th nationwide
  • High-tech workers earned an average wage of $84,800 (12th ranked), or 82 percent more than Texas’s average private sector wage
  • A high-tech payroll of $41.8 billion in 2008, ranked 2nd nationwide
  • 26,900 high-tech establishments in 2008, ranked 2nd nationwide

Texas’s National Industry Sector Rankings:

  • 2nd in internet and telecommunications services employment with 127,700 jobs
  • 2nd in engineering services employment with 96,900 jobs
  • 2nd in semiconductor manufacturing employment with 35,700 jobs

Source: Cyberstates 2010

Data are for 2008 unless otherwise noted.

2008 state data are the most current available for employment, wages, payroll, establishments, and industry sector jobs.

Published by TechAmerica Foundation

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About TechAmerica Foundation
TechAmerica Foundation educates industry executives, policymakers, and opinion leaders on the promise of technological innovation to advance prosperity, security, and the general welfare. Launched in 1981, the foundation is a 501(c)(3) non-profit, non-partisan affiliate of TechAmerica, the leading voice and resource for the U.S. technology industry. It disseminates award-winning industry, policy and market research covering topics such as U.S. competitiveness in a global economy, innovation in government, and other areas of national interest. The foundation also organizes conferences and seminars to explore pertinent issues with government and industry representatives and to share the foundation’s findings.