Tech Industry Remains Vital to California Economy

California High-Tech Workers Earn Highest Wage in the Nation - $107,100

San Diego, CA (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 Cyberstates 2009 report - which details national and state trends in high-tech employment, wages, and other key economic factors for all 50 states, the District of Columbia, and Puerto Rico - shows that California's high-tech industry added 2,000 net jobs for an industry total of 942,700 in 2007, the most current year for which state data is available. This marks the third net increase in jobs since the tech bubble began to burst in 2000. Leading the way in job creation were computer systems design and related services (+12,600 jobs), R&D and testing labs (+8,800), and engineering services (+2,500 jobs).

"California added tech jobs in 2007, the third year in a row of continuous employment growth," said Kevin Carroll, Executive Director, TechAmerica San Diego. "The 2008 national data show that the U.S. tech economy is relatively resilient, adding jobs on the year as a whole and not seeing a downturn until the fourth quarter. The tech industry could be uniquely poised to rebound from this recession through federal stimulus spending, which includes significant technology infrastructure investments. Governor Schwarzenegger and local San Diego officials need to make sure these federal dollars are directed locally to help spur our economic recovery."

The report found that California continued to lead the nation by most high-tech industry metrics. California's tech workers had the highest average wage at $107,100 which is 114 percent more than the state's average private sector wage.

Two other major TechAmerica cyber reports that analyze the U.S. high-tech industry: 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, are forthcoming.

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

What Does High Tech Mean for California?

• 942,700 high-tech workers in 2007 (1st ranked cyberstate)
• 2,000 jobs added between 2006 and 2007, ranked 19th nationwide
• High-tech firms employed 71 of every 1,000 private sector workers in 2006, ranked 8th nationwide
• High-tech workers earned an average wage of $107,100 (1st ranked), or 114 percent more than California's average private sector wage
• A high-tech payroll of $101.0 billion in 2007, ranked 1st nationwide
• 41,600 high-tech establishments in 2007, ranked 1st nationwide

California's National Industry Sector Rankings:

• 1st in computer systems design and related services employment with 197,700 jobs
• 1st in communications services employment with 157,200 jobs
• 1st in R&D and testing labs employment with 121,800 jobs
• 1st in engineering services employment with 111,700 jobs

Source: Cyberstates 2009

Data are for 2007 unless otherwise noted.

2007 state data are the most current available for employment, wages, payroll, establishments, and industry sector jobs.

Published by TechAmerica - Where the Future Begins

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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 www.techamerica.org.

Contact:
Kevin Carroll
Executive Director, TechAmerica San Diego
858.452.9288 or kevin.carroll@techamerica.org

Josh James
Director, Research and Industry Analysis (research-based inquiries)
202.682.4422 or josh.james@techamerica.org

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