"While high-tech employment fell by eight percent last year, preliminary 2003 data show a significant slowdown in high-tech job losses, with a decline of four percent," said AeA’s President and CEO William T. Archey. "We project that the 2003 high-tech job losses will total 234,000--down 57 percent from the 540,000 decline in 2002."

Archey further stated, "However, these declines have caused us to pause about two important issues. We are aware of current budget constraints, but now is not the time to cut back on education, particularly in math and science. We need a world class workforce to deal with world class challenges. Our second concern is the decline in basic research, particularly in technology, by the federal government. We worry that we have eaten the seed corn of federal research of 20 and 30 years ago that is not being replenished."

This new industry classification system is fundamentally different from the old Standard Industrial Classification (SIC) system. Every sector of the economy has been restructured and redefined by the NAICS. Consequently, the data presented in this report are not comparable in any way to previous editions of Cyberstates. In this edition, however, 2001, 2002, and 2003 data use the NAICS system and are therefore comparable.

Cyberstates 2003 found that all but three states lost high-tech jobs in 2002. California lost the greatest number of tech jobs, shedding some 123,000 jobs. Texas was second with tech jobs down by 61,000 jobs. Interestingly, the District of Columbia, Wyoming, and Montana were the only three cyberstates to add technology jobs between 2001 and 2002.

This seventh annual edition of Cyberstates provides a comprehensive review of the high-tech industry nationally and by state of high-tech employment, wages, payroll, establishments, and exports. Cyberstates also offers data on venture capital investments, R&D expenditures, and home computer and Internet use.

 Cyberstates 2003 Key Facts

• U.S. high-tech employment totaled 6.0 million in 2002, down 8 percent from 6.5 million in 2001

• The communications services and software sectors each shed 146,000 jobs from their payrolls

• Engineering and tech services dropped by 15,000 jobs

• R&D and testing labs added 7,000 jobs in 2002

• Colorado led the nation in concentration of high-tech workers in 2002, with 98 high-tech workers per 1,000 private sector workers, followed by Massachusetts, Virginia, New Mexico, and Maryland

U.S. Tech Exports and Venture Capital Expenditures Fell in 2002

• U.S. high-tech exports fell 12 percent to $166 billion in 2002, from $188 billion in 2001

• U.S. high-tech venture capital investments totaled $13 billion in 2002, dropping 52 percent from the $27 billion in 2001

Cyberstates 2003 is available to AeA members for $95 and to non-members for $190. Contact AeA at 800.284.4232 or 408.987.4200, or www.aeanet.org. Cyberstates 2003 is part of AeA’s cyber report series which includes Cybernation 2.0, CyberEducation 2002, and Cybercities.

NOTE TO EDITORS:  Press releases focusing on specific states were released on US Newswire and are available on AeA’s website

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AeA is the nation's largest high-tech trade association. Founded in 1943, AeA utilizes an extensive international network of offices to serve its members though advocacy, training, research and business services.

This page was last updated on 11/18/03.