New Report on the Tech Industry Finds that Silicon Valley Remains the Leading Location for Tech Employment
Although Often Overlooked, Southern California's Tech Industry Is Nearly as Large as Northern California's

Santa Clara, CA (June 27, 2006) – AeA, the nation’s largest trade association with 2,500 companies representing all segments of the high-tech industry, today released California Cybercities 2006. The report 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.

San Jose/Silicon Valley remained the state’s largest technology hub, employing some 214,900 tech industry workers in 2004, and paying the highest annual average wage of all California cybercities at $126,700. Following Silicon Valley was Los Angeles (165,700 jobs), San Francisco-Oakland (156,700), San Diego (99,900), and Orange County (97,700).

While California's tech industry overall lost 10,600 net jobs in 2004, this was down considerably from the 67,800 jobs lost in 2003. The tech industry in San Jose/Silicon Valley lost a net 10,500 job, contributing significantly to California's overall decline in tech employment in 2004. These lost jobs were balanced out by a net job growth in Sacramento (+1,300), Riverside-San Bernardino (+1,000), Fresno (+200), Santa Barbara (+150), and Salinas-Monterey (+70).

Of the 16 high-tech sectors, San Jose/Silicon Valley was the employment leader in eight. Los Angeles led in five sectors and ranked in the top five in 15 of 16 sectors. San Diego led in two sectors and was in the top five in 14 of 16 sectors. Orange County ranked in the top five of all 16 sectors.

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.

Throughout California, average annual tech wages were significantly higher than the average private sector wage. The statewide average tech wage was $90,600 or 106 percent higher than in the private sector. At the metropolitan level, the high-tech industry wage differential ranged from 183 percent higher in Santa Cruz to 53 percent higher in Ventura.

"California remains the preeminent location for the high-tech industry to conduct business, locate facilities, and create innovative products and services,” said William T. Archey, President and CEO, AeA. "California's tech industry job losses seem to be leveling off. The industry declined by a net of 10,600 jobs in 2004, compared to 67,800 in 2003. California was hit particularly hard by the bursting of the tech bubble and the consequent decline in venture capital investments, but it is now poised for growth.”

"However, this growth will only happen if we address the competitiveness issues facing both California and the nation," continued Archey. “To ensure job gains in the coming years, we have to get our house in order now. California needs to make itself more business friendly, improve its infrastructure, create more affordable housing, and make itself an attractive location to start a family. To this end, its schools need to be institutions of excellence, where all kids learn the skills necessary to compete in the 21st century, particularly in math and science. And, we need to recognize that we aren't only competing with other states but also with other countries."

California Cybercities 2006 is directly comparable to AeA’s annual Cyberstates report. Released in April, Cyberstates 2006 provides a comprehensive review of the high-tech 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.

 

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.

California Cybercities 2006 covers 17 metropolitan areas: Bakersfield, Fresno, Los Angeles, Orange County, Riverside - San Bernardino, Sacramento, Salinas - Monterey, San Diego, San Francisco - Oakland, San Jose/Silicon Valley, San Luis Obispo, Santa Barbara, Santa Cruz, Santa Rosa, Stockton, Vallejo, and Ventura.

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

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About AeA

AeA, founded in 1943, is a nationwide trade association with 2,500 member companies representing 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 06/27/06.