California High-Tech Workers Earn Highest Wage in the Nation, $95,300, AeA Report Says
California's high-tech industry added 14,400 net jobs -- a two percent increase -- for a tech industry total of 919,300 in 2005, the most current state data available. This marks the first net increase in jobs since the tech bubble began to burst in 2000. Leading the way in job creation were the computer systems design and related services sector (+7,100 jobs) and the engineering services sector (+6,400 jobs).
The report found that California continues to lead the nation by most high-tech industry metrics. California's tech workers had the highest average wage at $95,300, which is 109 percent above the state's average private sector wage. This differential is also the highest in the nation. Venture capital investments increased 14 percent to $12.2 billion in 2006, accounting for 48 percent of all venture capital in the country.
"This job growth in California's high-tech industry is a boon for the state and San Diego " said Kevin Carroll, Executive Director AeA San Diego Council. "Tech is been one of the most critical -- if not the most critical - - industry for promoting economic growth, innovation, and job creation in the state. Since the bursting of the tech bubble in 2001, the high-tech industry has continued to help grow the economy and spawn innovation, but not until the release of this latest data can we say definitively that we are back in the business of creating jobs for the Golden State. And these are high paying jobs with average wages that are more than twice as high as the state's average private sector wage." What the data does not show is it is not just Silicon Valley but Southern California and San Diego which has also experienced job growth.
"We need to maintain and advance this win-win situation of innovation and job expansion for high tech in San Diego," continued Carroll. "It benefits our companies, our workers, and the economy as a whole. With proper planning and initiative, we can push our local leaders to emphasize investments in long term research and improvements in math and science education in our schools so California and the greater San Diego region can continue its leadership in high tech."
Nationally, Cyberstates 2007 shows that the high-tech industry is picking up. High-tech employment was up by 146,600 out of 5.8 million workers in 2006, the second year in a row that the U.S. tech industry has added jobs.
This 10th edition of Cyberstates provides a comprehensive review of the high-tech industry nationally and state-by-state in terms of high-tech employment, wages, payroll, and establishments. Cyberstates also offers data on venture capital investments and R&D expenditures.
A national and state-by-state analysis of the technology industry and international trade will appear in a forthcoming AeA report entitled Trade in the Cyberstates 2007: A State-by-State Overview of High-Tech International Trade.
AeA members can purchase Cyberstates 2007 for $125; non-members for $250. Visit http://www.aeanet.org/cyberstates to download the report, or call 408.987.4200
What Does High Tech Mean for California?
-- 919,300 high-tech workers (1st ranked cyberstate)
-- 14,400 jobs gained between 2004 and 2005, ranked 1st nationwide
-- High-tech firms employed 71 of every 1,000 private sector workers in 2005, ranked 8th nationwide
-- High-tech workers earned an average wage of $95,300 (1st ranked), or 109 percent more than California's average private sector wage
-- A high-tech payroll of $87.6 billion in 2005, ranked 1st nationwide
-- 41,100 high-tech establishments in 2005, ranked 1st nationwide
-- Venture capital investments of $12.2 billion in 2006, up 14 percent from $10.7 billion in 2005
-- R&D expenditures of $60.5 billion in 2004, ranked 1st nationwide
California's National Industry Sector Rankings:
-- 1st in computer systems design and related services with 172,600 jobs
-- 1st in telecommunications services employment with 114,300 jobs
-- 1st in semiconductor manufacturing employment with 67,600 jobs
-- 1st in computer and peripheral equipment manufacturing with 59,100 jobs
Source: Cyberstates 2007
Data are for 2005 unless otherwise noted.
2005 state data are the most current available for employment, wages, payroll, establishments, and industry sector jobs.
Published by AeA, Advancing the Business of Technology ( http://www.aeanet.org)
About AeA
AeA, the nation's largest technology trade association with 2,500 member companies representing all segments of the high-tech industry, is dedicated solely to helping our members' top line and bottom line. We do this in partnership with our small, medium, and large member companies by lobbying governments at the state, federal, and international levels, providing access to capital and business opportunities, and offering select business services and networking programs. For more information, please visit http://www.aeanet.org.
Web site: http://www.aeanet.org//