Where the jobs are: High-tech workers facing fewer layoffs than most other sectors
By Manufacturing Business Technology Staff -- Manufacturing Business Technology, 4/3/2009 2:17:00 PM
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The high-tech industry has done better than other sectors when it comes to retaining jobs in tough economic times, according to the industry advocacy group TechAmerica.
"The U.S. high-tech industry continued to add jobs in 2008; however, future growth is clearly jeopardized as a result of the current economic downturn and the volatility of global financial markets,” says Christopher W. Hansen, CEO of TechAmerica. “While we suffered losses in the fourth quarter, our industry has weathered the storm better than most, and the results of our report indicate that the tech industry is well positioned to help lead America’s economic recovery.”
The numbers Hansen cited come from TechAmerica’s 12th annual Cyberstates report. Hansen says data from Q4 2008 shows the tech industry’s resilience compared with the U.S. economy as a whole. The industry recorded a 0.6-percent drop in employment, or 38,000 jobs, in the quarter while total private-sector employment declined by 1.3 percent.
Additional TechAmerica data shows the high-tech industry adding 382,900 jobs to the U.S. economy over the last four years. The breakdowns for individual years over that time frame are as follows:
- 77,000 net jobs added in 2008;
- 79,600 net jobs added in 2007;
- 139,000 net jobs added in 2006; and
- 87,400 net jobs added in 2005.
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A total of 5.9 million people were working in the industry at the end of 2008 (see table above), according to the Cyberstates report. The report also says 2008 was the fifth straight year of employment gains in the tech industry’s two strongest sectors—software service and engineering tech services, which added 86,200 and 26,600 net jobs respectively. On the downside, two other technology sectors—high-tech manufacturing and communications services—saw net employment losses 23,100 and 12,700 net jobs respectively.
Still, TechAmerica points to the technology initiatives and investments in the American Recovery and Reinvestment Act—the federal stimulus package—as further evidence of the leading role of technology in powering economic growth and job creation.
“In crafting the stimulus bill, Congress and the Obama Administration put their trust in the transformative power of technology to build infrastructure for the 21st century, modernize our education and health-care systems, and create smarter and more efficient ways to use energy,” says Phillip J. Bond, President of TechAmerica. “The results of our Cyberstates report show that they have chosen wisely—technology investments will foster new economic growth at the state, local, and national levels.”
