California's Tech Industry Slowly Turning the Corner
California Tech Employment Losses Slow Significantly  

Los Angeles, CA (April 19, 2006) – AeA, the nation’s largest trade association representing all segments of the high-tech industry, today released its ninth annual Cyberstates report detailing national and state trends in high-tech employment, wages, exports, and other key economic factors.  The report, Cyberstates 2006: A Complete State-by-State Overview of the High-Technology Industry, covers all 50 states, the District of Columbia, and Puerto Rico.

California's 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 a dramatically slower job loss than the 67,800 jobs lost in 2003.

The report found that California still led the nation by most high-tech industry metrics.   California's tech workers had the highest average wage and the largest payroll.  The venture capital industry invested $10.4 billion in California and tech companies exported $47.8 billion from California to countries around the world.

"California continues to create wealth and innovation through our high-tech industry,” said Michael Leigh, CEO, Technology Market Force, and Chairman of the AeA Los Angeles Council.  "Venture capital investments in California jumped by $395 million, the most in the nation.  To assure that these investments continue to come to greater Los Angeles, community and industry leaders need to work to improve our education system to provide our children and our workforce with the math and science skills they will need to compete in an economy that is knowledge based and driven by technology."

Nationally, Cyberstates 2006 shows that the high-tech industry is edging forward.  High-tech employment added 61,100 net jobs for a total of 5.6 million workers in 2005, the first increase in tech jobs in four years.  U.S. high-tech exports were also up by four percent for a total of $199 billion in 2005.

This ninth annual 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.  Please visit www.aeanet.org/cyberstates to download the report, or call 408.987.4200. 

 What Does High Tech Mean for California?

• 904,900 high-tech workers (1^st ranked Cyberstate)
   

• 10,600 jobs lost between 2003 and 2004
   

• High-tech firms employed 72 of every 1,000 private sector workers in 2004, ranked 8^th nationwide
   

• High-tech workers earned an average wage of $90,600 (1^st ranked), or 106 percent more than California's average private sector wage
   

• A high-tech payroll of $81.9 billion in 2004, ranked 1^st nationwide
   

• 41,900 high-tech establishments in 2004, ranked 1^st nationwide
   

• High-tech exports totaled $47.8 billion in 2005, ranked 1^st nationwide
   

• High-tech exports represented 41 percent of California’s export
   

• Venture capital investments of $10.4 billion in 2005, up 4 percent from $10.0 billion in 2004
   

• R&D expenditures of $59.7 billion in 2003, ranked 1^st nationwide

California’s National Industry Sector Rankings:

• 1^st in semiconductor manufacturing employment with 66,800 jobs
   

• 1^st in computer and peripheral equipment manufacturing employment with 60,200 job
   

• 1^st in electronic components manufacturing employment with 49,300 jobs

Source: Cyberstates 2006

Data are for 2004 unless otherwise noted.

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

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 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 04/18/06.   
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