Washington, DC, April 26, 2005 – A study released today by AeA shows that in 2004 the U.S. high-tech industry lost 25,000 jobs, dropping to 5.6 million.  This decline in 2004 represents a considerable slowdown in technology jobs lost, compared to the 333,000 jobs lost in 2003 and the 612,000 jobs lost in 2002.  The report, AeA’s annual Cyberstates 2005:  A State-by-State Overview of the High-Technology Industry, details national and state trends in high-tech employment, wages, exports, and other economic indicators.

"The good news is that the technology industry looks to have turned a corner," said AeA’s President and CEO, William T. Archey.  "For the first time since 2000, both software services and engineering and tech services added jobs.  Each of these tech sectors added over 30,000 net new jobs to the economy in 2004.  This is especially positive news because tech jobs pay 84 percent more than the average private sector job."

Cyberstates 2005 found that all but four states lost high-tech jobs in 2003, the most recent year for which state data are available.  California and Texas lost the greatest number of tech jobs, shedding some 67,800 and 32,900 jobs, respectively.  Despite these losses, California and Texas remained the leading cyberstates by employment, followed by New York and Florida.  However, Virginia displaced Massachusetts in 2003, becoming the fifth largest state by technology employment.  And, while Colorado remained the nation's leading cyberstate by concentration of high-tech workers, Virginia also moved up by this metric to second place.

The report also found that venture capital investment in the technology industry rose for the first time since 2000.  High-tech venture capital investment totaled $11.8 billion in 2004, compared to $10.7 billion in 2003.

Archey further stated, “While the tech industry is beginning to make some headway, we need to be aware of increased challenges to our lead in science and technology as competition from the rest of the world intensifies.  We need to pay particular attention to the factors that drive technology innovation, primarily a highly educated and skilled workforce and research and development.  We explore these issues in our recent report Losing the Competitive Advantage?”

This eighth edition of Cyberstates provides a comprehensive review of the high-tech industry nationally and state-by-state by high-tech employment, wages, payroll, establishments, and trade.  Cyberstates also offers data on venture capital investments and R&D expenditures.

AeA members can purchase the report for $95; non-members for $190.  Visit www.aeanet.org to download the report, or call 800.284.4232 or 408.987.4200.

·      U.S. high-tech employment totaled 5.56 million in 2004.

·      Tech employment was down in 2004 by 25,000 or by 0.5 percent.

·      Tech employment declined by 333,000 in 2003 and by 612,000 in 2002.

·      High-tech manufacturing industry employment fell by 2 percent, losing 31,900 jobs between 2003 and 2004.

·      The biggest 2003-2004 manufacturing job losses were recorded in computers and peripheral equipment (-11,900) and electronic components (-5,500).

·      The communications services shed 54,000 jobs from their payrolls.

·      The software services industry added 30,300 jobs.

·      The engineering and tech services industry added over 30,000 jobs in 2004.

U.S. High-Tech Employment

All But Four Cyberstates Lost Tech Jobs in 2003

U.S. Tech Exports and Venture Capital Expenditures Increased in 2004

This page was last updated on 04/27/05.