Pittsburgh’s Tech Industry Adds 1,500 Jobs
Pittsburgh Tech Workers Earn Two-Thirds More Than Area’s Average Private Sector Wage

Washington, DC (June 24, 2008) – AeA, the nation’s largest technology trade association representing all segments of the high-tech industry, today released Cybercities 2008: An Overview of the High-Technology Industry in the Nation's Top 60 Cities. This detailed report tracks trends in high-tech employment, wages, establishments, payroll, employment concentration, and wage differential at the metropolitan level.

The high-tech industry in Pittsburgh added 1,500 net jobs, a three percent increase, for an industry total of 91,400 in 2006, according to the most current metropolitan data available. These jobs are very important to the local economy because they paid 66 percent more then the average private sector wage.

The engineering services sector played a major role in Pittsburgh in 2006, employing 10,400 people. Following this was R&D and testing labs which employed 8,900 in 2006. This was a significant part of the increased employment in Pittsburgh, as R&D and testing labs grew by 1,100 from 2005.

"Pittsburgh has reinvented itself. We have successful transitioned ourselves from the heavy industries of the past into the high-tech services of the future," said Christopher Hansen, President and CEO, AeA. "The tech industry is particularly attracted to Pittsburgh because of our strong research universities such as Carnegie Mellon University and the University of Pittsburgh. These institutions provide the industry with a strong pipeline of highly skilled technology workers. We also need to reform our high-skilled visa and green card system at the national level so that those foreign nationals, who are educated at our world class universities, can stay here in Pittsburgh and work. These people ultimately create the jobs and companies that help keep America on the cutting edge."

"America also needs to do more to invest in our educational system from kindergarten to college and in physical science basic research," said Chris Hansen, AeA's President and CEO. "These areas are critical components of the technology industry's pipeline. The America Competes Act, which overwhelmingly passed through both houses of Congress and was signed into law in August 2007, addresses many of these issues. Unfortunately, it was never funded. We call on the President and the Congress to make certain this Act is fully funded in 2008."

Cybercities 2008 shows that the top five cybercities by high-tech employment in 2006 were the New York Metro Area, Washington, DC, San Jose/Silicon Valley, Boston, and Dallas-Fort Worth. The nation’s highest tech industry concentration was in San Jose/Silicon Valley, where more than one in four private sector workers were employed by the tech industry. Seattle saw the largest tech industry employment growth, adding 7,800 jobs in 2006.

Later this summer, AeA will release Trade in the Cyberstates 2008: A State-by-State Overview of High-Tech International Trade. That report will look at the most recent data on high-tech exports from all 50 states, the District of Columbia, and Puerto Rico.

AeA members can purchase Cybercities 2008 for $125; non-members for $250.  Visit www.aeanet.org/cybercities to download the report, or call 408.987.4200. 

What Does High Tech Mean for Pittsburgh?

• 49,800 high-tech workers in 2006 (27th ranked cybercity)
   

• 1,500 jobs gained between 2005 and 2006 (22nd ranked cybercity)
   

• High-tech firms employed 52 of every 1,000 private sector workers in 2006 (38th ranked cybercity)
   

• High-tech workers earned an average wage of $67,100 (43rd ranked), or 66 percent more than Pittsburgh’s average private sector wage.
   

• A high-tech payroll of $3.3 billion in 2006 (28th ranked cybercity)
   

• 2,200 high-tech establishments in 2006 (30th ranked cybercity)

Pittsburgh’s National Industry Sector Rankings:

• 16th in R&D and testing labs employment with 8,900 jobs
   
• 21st in engineering services employment with 10,400 jobs
   
• 25th in telecommunication services employment with 8,600 jobs

Notes:

Pittsburgh = Pennsylvania Counties: Allegheny, Armstrong, Beaver, Butler, Fayette, Washington, and Westmoreland County.

Data are for 2006 unless otherwise noted.

2006 data are the most current available for employment, wages, payroll, establishments, and industry sector jobs.

Source: Cybercities 2008

Published by AeA, Advancing the Business of Technology (www.aeanet.org)

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About AeA

AeA, the nation’s largest technology trade association, 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.   

This page was last updated on 06/24/08.            
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