TechAmerica Foundation : Cyberstates 2011 Executive Summary

Cyberstates 2011 Executive Summary

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|| 2011 Mid-year Update

TechAmerica Foundation proudly presents this 14th annual edition of Cyberstates: The Definitive State-by- State Analysis of the U.S. High-Tech Industry, which examines the size and scope of the high-tech industry in terms of jobs, wages, and other factors nationally and in all 50 states, the District of Columbia, and Puerto Rico. The U.S. high-tech industry lost 115,800 jobs in 2010, for a total of 5.75 million workers. This two percent decline in tech industry employment was less than half of the 249,500 jobs lost in 2009 following several years of sustained growth.

Of the four high-tech sectors highlighted in this report, only software services added jobs in 2010 — 22,800, a modest one percent gain. Of the jobs lost, 72,100 were in communications services, 53,600 were in tech manufacturing, and 12,900 were in engineering and tech services.

Cyberstates 2011 relies on data from the U.S. Bureau of Labor Statistics. The report provides 2010 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.

The state-by-state data reveal that only eight cyberstates added tech jobs in 2010. The largest gains occurred in Michigan (+2,700), the District of Columbia (+1,400), West Virginia (+400), Utah (+400), and South Carolina (+300). On a percentage basis, the District of Columbia saw the fastest job growth in 2010 at 4.3 percent, albeit at a small base.

For the sixth straight year, Virginia led the nation with the highest concentration of tech workers — 98 of every 1,000 private sector workers in the state were employed in the tech industry. Massachusetts and Colorado ranked second and third, respectively.

The tech industry continues to pay it workers well — 93 percent more than the average private sector wage. Forty-nine cyberstates had wage differentials above 50 percent and seven had differentials higher than 100 percent. To restore job growth in the U.S. tech industry, the United States needs to focus on those factors that made us the most competitive economy in the world over the last 60 years. We fostered a technically skilled workforce by educating American youth in math, science, and engineering, and by welcoming — not shunning — highly skilled talent from across the globe. We recognized that investment in research and development was critical to promoting technological innovation.

Most importantly, we understood that innovation — taken in its broadest sense as the open acceptance of change and new ideas — is what fuels our economy. Innovation has created entirely new industries and is largely responsible for the dramatic increases in productivity that help raise American wages and living standards and create high paying jobs.

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