Redmond, WA, June 26, 2002—Washington’s high-technology industry employment growth slowed last year, growing by just one percent or by 1,500 jobs, with tech employment reaching 135,800. This is a dramatic change from the previous year, when technology employment in Washington grew by 16 percent, according to Cyberstates 2002: A State-by-State Overview of the High-Technology Industry, a new analytical report released today by AeA.

At the same time, Washington experienced a dramatic decline in venture capital investments, dropping by 60 percent, from $2.6 billion to $1 billion between 2000 and 2001.

Cyberstates 2002 also shows that electronics exports from Washington increased five percent in 2001, to $2.4 billion from $2.3 billion in 2000, compared with a national decline of 15 percent.

"The concentration of Washington's technology industry on the services side means that Washington weathered the technology slowdown without losing technology jobs. And with the technology industry responsible for 61 out of every 1,000 jobs, Washington's technology industry is still strong," said Dennis Brewer, Chairman of AeA’s Washington Council and Managing Director of CNA Consulting. "However, the challenge for Washington will be the effect of the decline in venture capital investments," he added.

Nationally, Cyberstates 2002 shows that high-tech industry employment grew slightly in 2001, reaching 5.6 million, compared to 5.5 million in 2000. This one percent increase illustrates the effect of the technology slowdown in 2001, compared to nine percent growth in 2000.

Cyberstates 2002 is the sixth edition of AeA’s Cyberstates reports. The study includes nine chapters detailing national and state trends in employment, wages, and exports. Venture capital investments, research and development (R&D) expenditures, and computer and Internet home use are also examined. The report includes state rankings for each indicator. Cyberstates 2002 is based on the most current U.S. government data available.

What Does High Tech Mean for Washington?

• High-tech workers earned an average wage of $118,300 (1^st ranked), or 218% more than the average private sector wage in 2000

• An increase of $112 million in high-tech exports between 2000 and 2001

• Venture capital investments declined by 60% between 2000 and 2001, dropping by $1.6 billion

• Home Internet access totaled 60%, ranked 3^rd nationwide

Source: Cyberstates 2002
Data are for 2001 unless otherwise noted.
2000 data are the most current for wages, payroll, establishments, and industry segment jobs.