Tech Industry Remains Vital to New Jersey Economy

New Jersey Is the 8th Largest Cyberstate by Tech Employment in 2007

Clark, NJ (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 New Jersey's high-tech industry added 4,400 net jobs to its economy in 2006, the most recent year for which state data are available. New Jersey ranked the 8th largest cyberstate employing 210,000 with a total payroll of $19.7 billion. Tech industry jobs pay on average $93,800 - 75 percent higher than the state's average private sector wage.

"On the verge of recession in 2007, New Jersey's tech industry was still adding jobs, a sign of the fundamental strength of high-tech in our state," said Maryann Fiala, Acting Executive Director of TechAmerica New Jersey-Pennsylvania. "The 2008 national data indicate that high-tech held its own - adding jobs in the first three quarters before shedding them in the fourth, albeit at a much slower rate than the private sector economy."

"The Garden State is already looking ahead to tech to lead this economy out of recession after the worst is over," said Tom Shields, EVP and CFO of ANADIGICS, Inc. "Federal stimulus spending, with its provisions for significant technology investments, could be the catalyst we need to spur the economic recovery in our state."

New Jersey's tech industry job growth in 2007 was led by computer systems design and related services (+4,900 jobs), followed by engineering services (+1000 jobs). Job losses came in R&D and testing labs (-300 jobs), defense electronics (-300 jobs), and communications services (-100 jobs).

Two other major TechAmerica cyber reports are forthcoming 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.

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 New Jersey?

• 210,000 high-tech workers in 2007 (8th ranked cyberstate)
• 4,400 jobs added between 2006 and 2007
• High-tech firms employed 63 of every 1,000 private sector workers in 2007, ranked 10th nationwide
• High-tech workers earned an average wage of $93,800 (4th ranked), or 75 percent more than New Jersey's average private sector wage
• A high-tech payroll of $19.7 billion in 2007, ranked 6th nationwide
• 14,100 high-tech establishments in 2007, ranked 7th nationwide

New Jersey's National Industry Sector Rankings:

• 4th in defense electronics manufacturing employment with 8,800 jobs
• 6th in computer systems design and related services employment with 60,200 jobs
• 6th in communications services employment with 53,000 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:
Maxine Ballen
President and CEO, New Jersey Technology Council
856.787.9700 or mballen@njtc.org

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

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