Warren, NJ, November 19, 2003—New Jersey’s high-technology industry shrank by nearly 29,000 jobs in 2002, according to Cyberstates 2003: A State-by-State Overview of the High-Technology Industry, a new analytical report released today by AeA. The state ranked 9^th nationwide in high-technology employment in 2002, down from 8^th place in 2001.

Cyberstates 2003 shows that New Jersey’s tech industry dropped by 12 percent in 2002 to 216,500 workers. The state’s high-tech manufacturing sector shed some 6,400 jobs, while its telecommunications services sector lost 10,000 jobs, and software was down by 7,000.

"The latest Cyberstates data clearly show that New Jersey’s high-tech industry was hit hard last year," said Linda Klose, Executive Director, AeA’s New Jersey Council. "We are optimistic that in the coming year the industry will rebound."

Cyberstates 2003 also examines tech exports and venture capital investments. New Jersey exported $3.2 billion worth of high-tech goods in 2002, compared to $4.2 billion in 2001, a 24 percent drop. Similarly, venture capital investments in New Jersey dropped by 62 percent, falling from $1.5 billion in 2001 to $570 million in 2002.

Nationally, Cyberstates 2003 shows that high-tech employment fell by 540,000 jobs, dropping to 6 million in 2002. However, using preliminary data, we estimate that the tech industry will lose 234,000 jobs in 2003.

For the first time, Cyberstates 2003 is based on the newly implemented North American Industry Classification System (NAICS). This more current and comprehensive system allows us to capture several sectors, which we could not with the previous system. These include fiber optic cable manufacturers, semiconductor machinery manufacturers, and web search portals. Consequently, the data presented in this report are not comparable in any way to previous editions of Cyberstates.

Cyberstates 2003 is the seventh edition of AeA’s Cyberstates reports. The study includes seven chapters detailing national and state trends in employment, wages, and exports. Venture capital investments and research and development (R&D) expenditures are also examined. The report includes state rankings for each indicator. Cyberstates 2003 is based on the most current U.S. government data available.

What Does High Tech Mean for New Jersey?

• 28,700 jobs lost between 2001 and 2002

• High-tech firms employ 66 of every 1,000 private sector workers in 2002, ranked 13^th nationwide

• High-tech workers earned an average wage of $73,831 (5^th ranked), or 67% more than the average private sector wage

• 13,300 high-tech establishments in 2001, ranked 7^th nationwide

• High-tech exports totaled $3.2 billion in 2002, ranked 10^th nationwide

• Venture capital investments of $568 million, down 62% from $1.5 billion in 2001

• R&D expenditures of $13.1 billion in 2000, ranked 4^th nationwide

New Jersey’s National Industry Segment Rankings:

• 5^th in computer systems design and related services with 51,000 jobs

• 5^th in R&D and testing labs employment with 35,900 jobs

Source: Cyberstates 2003
Data are for 2002 unless otherwise noted.
2001 data are the most current for wages, payroll, establishments, and industry segment jobs.