Tech Industry Remains Vital to Massachusetts Economy

Massachusetts Boasts 2nd Highest Concentration of High-Tech Workers in the Nation

Woburn, MA (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 Massachusetts's high-tech industry added 3,800 net jobs - a rise of two percent - in 2007, the most current year for which state data are available. These jobs are well compensated at an average of $100,500 - 80 percent more than the state's average private sector wage.

"The fact that the Massachusetts tech sector added 3,800 jobs in 2007, on the eve of the current downturn, demonstrates the strength of the tech industry," said Anne Doherty Johnson, Executive Director, TechAmerica New England. "The national data show that America's tech sector was remarkably resilient in 2008, not experiencing net job loss until the fourth quarter, and even then, at about half the rate of job loss in the private sector. To give the Massachusetts economy every chance at a successful and expedient recovery, we call upon our public officials to direct federal stimulus investments to our local economy. The provisions of the package, which include substantial technology infrastructure investments, could boost job creation in the short run while equipping us for sustainable long-term growth."

Massachusetts remained the 6th largest cyberstate employing 246,500 with a total payroll of $25 billion. Massachusetts boasts the second highest concentration of high tech workers with 87 out of every 1,000 private sector workers employed by the high-tech industry.

Massachusetts' largest job gains in 2007 occurred in computer systems design and related services (+3,800 jobs). This growth combined with the job gains in software publishers (+1,000 jobs) and R&D and testing labs (+ 400 jobs), offset the loss in communications services (- 900 jobs), engineering services (- 600 jobs).

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 Massachusetts?

• 246,500 high-tech workers in 2007 (6th ranked cyberstate)
• 3,800 jobs added between 2006 and 2007
• High-tech firms employed 87 of every 1,000 private sector workers in 2007, ranked 2nd nationwide
• High-tech workers earned an average wage of $100,500 (2nd ranked), or 80 percent more than Massachusetts's average private sector wage
• A high-tech payroll of $24.8 billion in 2007, ranked 4th nationwide
• 11,300 high-tech establishments in 2007, ranked 11th nationwide

Massachusetts's National Industry Sector Rankings:

• 2nd in R&D and testing labs employment with 44,520 jobs
• 2nd in measuring and control instruments manufacturing employment with 15,900 jobs
• 2nd in consumer electronics manufacturing employment with 3,800 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

- # # # -

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:
Anne Doherty Johnson
Executive Director, TechAmerica New England
781.938.1925 or anne.doherty.johson@techamerica.org

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

Featured Events

Access to Investors
Present your company to potential investors at TechAmerica's Growth Cap Financial Conference from May 12-14 in San Francisco...
Read Full Article

Public Sector
TechAmerica and Grant Thornton will release the 20th Annual Survey of Federal CIOs on March 23. Attend the conference in Washington, DC...
Read Full Article

Advertisement

...
Read Full Article