California Tech Employment Losses Slow Significantly

AeA, a trade association representing all segments of the high-tech industry, today released its ninth annual Cyberstates report detailing national and state trends in high-tech employment, wages, exports, and other key economic factors. The report, Cyberstates 2006: A Complete State-by-State Overview of the High-Technology Industry, covers all 50 states, the District of Columbia, and Puerto Rico.

Nationally, Cyberstates 2006 shows tech industry gains. High-tech employment was up by 61,100 workers in 2005, the first increase in tech jobs in four years. U.S. high-tech exports gained four percent, for a total of $199 billion in 2005.

In California, widely considered the epicenter of the U.S. tech industry, job loss slowed. In 2004, the latest year for which state data is available, high tech lost only 10,600 jobs, compared to a loss of 67,800 jobs in 2003.

The report also confirmed that California continues to lead the nation by most high-tech industry metrics. California tech companies report the largest payrolls of technology employers nationwide, and California tech workers had the highest average wage in the United States. In 2005, venture capitalists invested $10.4 billion in California, and tech companies exported $47.8 billion from California to countries around the world.

"California remains a fertile environment for new ideas and new technology companies," said Tim Guertin, President and CEO, Varian Medical Systems. "Venture capital investments in California jumped by $395 million, the most in the nation. Silicon Valley continues to be a primary destination for this investment. To maintain our competitiveness, U.S. technology leaders must continue to press for increased investment in long-term basic research, fewer restrictions on highly skilled foreign nationals who come to study and start companies, and dramatically improve K-12 math and science education."

What Does High Tech Mean for California?

• 904,900 high-tech workers (1st ranked cyberstate)
  
  
• 10,600 jobs lost between 2003 and 2004
  
  
• High-tech firms employed 72 of every 1,000 private sector workers in 2004, ranked 8th nationwide
  
  
• High-tech workers earned an average wage of $90,600 (1st ranked), or 106 percent more than California's average private sector wage
  
  
• A high-tech payroll of $81.9 billion in 2004, ranked 1st nationwide
  
  
• 41,900 high-tech establishments in 2004, ranked 1st nationwide
  
  
• High-tech exports totaled $47.8 billion in 2005, ranked 1st nationwide
  
  
• High-tech exports represented 41 percent of California's exports
  
  
• Venture capital investments of $10.4 billion in 2005, up 4 percent from $10.0 billion in 2004
  
  
• R&D expenditures of $59.7 billion in 2003, ranked 1st nationwide

California's National Industry Sector Rankings:

• 1st in semiconductor manufacturing employment with 66,800 jobs
  
  
• 1st in computer and peripheral equipment manufacturing employment with 60,200 jobs
  
  
• 1st in electronic components manufacturing employment with 49,300 jobs

Data are for 2004 unless otherwise noted.

2004 data are the most current for state employment, wages, payroll, establishments, and industry segment jobs.

Source: Cyberstates 2006