Tech Industry Remains Vital to Virginia Economy

Virginia Has the Nation's Highest Concentration of Tech Workers

Washington, DC (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 Virginia's tech industry grew by two percent, adding 5,300 jobs for a total of 276,100 in 2007, the most recent year for which state data are available. This is the fourth consecutive year of ranking among the top five states by tech job growth for Virginia. Virginia also continues to be the national leader in terms of high-tech employment concentration, with 9.2 percent of its private sector workforce in the tech industry. These jobs pay nearly twice as much as the average private sector job in Virginia.

"Virginia is the epitome of a high-tech success story-it is the fifth ranked cyberstate nationally, has the highest concentration of tech workers, grew for the fourth consecutive year in 2007, and has consistently boasted one of the fastest growing high-tech employment populations in the country," said Phillip J. Bond, President of TechAmerica. "This all indicates that the tech industry here in Virginia is well positioned to weather the storm. We anticipate that - bolstered by technology investments outlined in the stimulus package - the tech industry in Virginia will be poised to lead our state's recovery efforts."

The state's largest high-tech sector is computer systems design and related services which employs 126,400 people, added 7,400 jobs in 2007, and was ranked 2nd nationwide, after California. The state also gained tech jobs in the software publishers services sector (+200 jobs) as well as the high tech manufacturing sectors (+400 jobs). Virginia shed jobs in communications services (-1,300 jobs), engineering services (-1,000 jobs) and R&D and testing labs (-300 jobs) in 2007.

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 Virginia?

• 276,100 high-tech workers in 2007 (5th ranked cyberstate)
• 5,300 jobs added between 2006 and 2007
• High-tech firms employed 92 of every 1,000 private sector workers in 2007, ranked 1st nationwide
• High-tech workers earned an average wage of $89,700 (6th ranked), or 97 percent more than Virginia's average private sector wage
• A high-tech payroll of $24.8 billion in 2007, ranked 5th nationwide
• 15,700 high-tech establishments in 2007, ranked 6th nationwide

Virginia's National Industry Sector Rankings:

• 2nd in computer systems design and related services employment with 126,400 jobs
• 4th in engineering services employment with 50,500 jobs
• 8th in communications services employment with 52,800 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

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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:
Anne Caliguiri
Director of Communications
202.682.4443 or anne.caliguiri@techamerica.org

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

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