Silicon Valley Boast Most Tech Workers Statewide with the Highest Wages Statewide
San Francisco is California's 1st Ranked Cybercity in Software Publishing Employment

Santa Clara, CA (June 27, 2006) – A new report, released today by AeA, the nation’s largest trade association representing all segments of the high-tech industry, reveals that San Jose/Silicon Valley remains the state’s largest technology hub, employing some 214,900 tech industry workers, and paying the highest annual average wage of all California cybercities at $126,700. The report – California Cybercities 2006 – provides a comprehensive review of the high-tech industry statewide and in the 17 largest metropolitan areas by high-tech employment, wages, payroll, and establishments.

Of the 16 high-technology sectors, the report shows, San Jose/Silicon Valley is the employment leader in eight. The largest of these is semiconductor manufacturing, employing 39,100 workers in 2004. The report also reveals that high-tech job losses from the bursting of the tech bubble are leveling off in the Valley, as only 10,500 jobs were lost in 2004 compared to 27,800 lost in 2003.

Of the 16 high-technology sectors, San Jose/Silicon Valley is the employment leader in eight. The largest of these is semiconductor manufacturing, employing 39,100 workers in 2004.

The San Francisco-Oakland metro area ranks third in the state in high-tech employment with 156,700 tech industry workers, down 200 net jobs in 2004. San Francisco-Oakland’s tech industry pays the third highest annual average wage of all California cybercities at $96,900, and leads the state in software publishing employment with 17,100 jobs.

"The Bay Area remains the preeminent location in both the state and the country to conduct high-tech business,” said Julie Biagini, Executive Vice President of Endwave Corporation and Chairperson of AeA’s Bay Area Council. "Over a quarter of the Valley’s workforce is employed by the tech industry. These jobs pay incredibly well, 75 percent more than the average private sector wage.”

According to the report, the San Francisco-Oakland metro area ranks third in the state in high-tech employment with 156,700 tech industry workers, down 200 net jobs in 2004. San Francisco-Oakland’s tech industry pays the third highest annual average wage of all California cybercities at $96,900, and leads the state in software publishing employment with 17,100 jobs.

“To hold onto this prized position we cannot be complacent,” continued Biagini. “To ensure job growth in the coming years we have a lot of work to do. San Francisco, Silicon Valley, and California have to be seen as friendly places to do business and to live. To this end, our schools need to be institutions of excellence, where all kids learn the necessary skills to compete in the 21st century, particularly in math and science. And to remain competitive, we must press our national leaders to allow the best and brightest from around the world to work for our companies, study in our world-class universities, and start new companies here."

California's statewide high-tech industry employment edged downward by 10,600, or by one percent, for a tech industry total of 904,900 jobs in 2004, the most current state data available. This is dramatically slower than the 67,800 jobs lost in 2003. Geographically, California’s tech industry is diffused across the state. Northern California employs 439,000 tech industry workers, compared to 418,000 in Southern California.

California Cybercities 2006 is directly comparable to AeA’s annual Cyberstates report. Released in April, Cyberstates 2006 provides a comprehensive review of the high-technology industry at the national and state-by-state level.

AeA members can purchase California Cybercities 2006 for $45; non-members for $90. Please visit www.aeanet.org/research to download the report, or call 408.987.4200.

What Does High Tech Mean for San Jose/Silicon Valley?

• 214,900 high-tech workers (1st ranked California cybercity)

• 10,500 jobs lost between 2003 and 2004

• High-tech firms employed 284 of every 1,000 private sector workers in 2004, ranked 1st statewide
   

• High-tech workers earned an average wage of $126,700 (1st ranked), or 75 percent more than San Jose/Silicon Valley's average private sector wage

• A high-tech payroll of $27.2 billion in 2004, ranked 1st statewide

• 5,600 high-tech establishments in 2004, ranked 3rd statewide

San Jose/Silicon Valley’s State Industry Sector Rankings:

• 1st in semiconductor manufacturing employment with 39,100 jobs

• 1st in computer and peripheral equipment manufacturing employment with 29,100 jobs

• 1st in electronic components manufacturing employment with 18,100 jobs

What Does High Tech Mean for San Francisco - Oakland?

• 156,700 high-tech workers (3rd ranked California cybercity)

• 200 jobs lost between 2003 and 2004

• High-tech firms employed 94 of every 1,000 private sector workers in 2004, ranked 3rd statewide
   

•  High-tech workers earned an average wage of $96,900 (3rd ranked), or 74 percent more than San Francisco – Oakland’s average private sector wage
   

•  A high-tech payroll of $15.2 billion in 2004, ranked 2nd statewide

• 7,500 high-tech establishments in 2004, ranked 2nd statewide

San Francisco - Oakland State Industry Sector Rankings:

• 1st in software publishers employment with 17,100 jobs

•  2nd in telecommunications services employment with 20,800 jobs

•  2nd in computer and peripheral equipment manufacturing employment with 9,300 jobs

Source: California Cybercities 2006

Data are for 2004 unless otherwise noted.

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

Data throughout this press release are rounded.

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

- # # # -

About AeA

AeA, founded in 1943, is a nationwide trade association that represents all segments of the technology industry and 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 www.aeanet.org.

 

This page was last updated on 06/21/06.