California Tech Industry Rebounds, Adding 14,400 Jobs
California High-Tech Workers Earn Highest Wage in the Nation, $95,300, AeA Report Says

Santa Clara, CA (April 24, 2007) – AeA, the nation’s largest technology trade association with 2,500 member companies representing all segments of the high-tech industry, today released its 10th anniversary Cyberstates report detailing national and state trends in high-tech employment, wages, and other key economic factors. The report, Cyberstates 2007: 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 added 14,400 net jobs – a two percent increase – for a tech industry total of 919,300 in 2005, the most current state data available. This marks the first net increase in jobs since the tech bubble began to burst in 2000. Leading the way in job creation were the computer systems design and related services sector (+7,100 jobs) and the engineering services sector (+6,400 jobs).

The report found that California continues to lead the nation by most high-tech industry metrics. California's tech workers had the highest average wage at $95,300 which is 109 percent above the state’s average private sector wage. This differential is also the highest in the nation. Venture capital investments increased 14 percent to $12.2 billion in 2006, accounting for 48 percent of all venture capital in the country.

“Since the bursting of the technology bubble, people across the state and around the country have wondered when – if ever – California and the high-tech industry would rebound,” said Tim Guertin, President and CEO of Varian Medical Systems. “At long last we can finally say that is happening. We are expanding employment for the first time since 2000 – adding more tech industry jobs than any other state. These jobs are the best paid in the country, compared to both absolute tech wages in every other state and to the differential over the average private sector wage in California. And venture capital investments in the Golden State continue to rise and dominate overall VC investments in the country.”

“Silicon Valley remains the nexus for high tech in California,” continued Guertin. “But as AeA’s California Cybercities report showed earlier this year, southern California employs nearly as many tech workers as northern California, and tends to offer workers a lower cost of living. The key to maintaining the Valley as the preeminent high-tech hub in the state, the country, and the world will depend on a number of variables. These include the skills of our workforce as measured by both the quality of math and science education in our schools and the ability of our companies to recruit top talent from other states and from around the world, the attractiveness and affordability of living and conducting business in the area, and continued access to venture capital.”

Nationally, Cyberstates 2007 shows that the high-tech industry is picking up. High-tech employment was up by 146,600 out of 5.8 million workers in 2006, the second year in a row that the U.S. tech industry has added jobs.

This 10th edition of Cyberstates provides a comprehensive review of the high-tech industry nationally and state-by-state in terms of high-tech employment, wages, payroll, and establishments. Cyberstates also offers data on venture capital investments and R&D expenditures.

A national and state-by-state analysis of the technology industry and international trade will appear in a forthcoming AeA report entitled Trade in the Cyberstates 2007: A State-by-State Overview of High-Tech International Trade.

AeA members can purchase Cyberstates 2007 for $125; non-members for $250. Visit www.aeanet.org/cyberstates to download the report, or call 408.987.4200. 

What Does High Tech Mean for California?

• 919,300 high-tech workers (1st ranked cyberstate)
   
• 14,400 jobs gained between 2004 and 2005, ranked 1st nationwide
   
• High-tech firms employed 71 of every 1,000 private sector workers in 2005, ranked 8th nationwide
   
• High-tech workers earned an average wage of $95,300 (1st ranked), or 109 percent more than California's average private sector wage
   
• A high-tech payroll of $87.6 billion in 2005, ranked 1st nationwide
   
• 41,100 high-tech establishments in 2005, ranked 1st nationwide
   
• Venture capital investments of $12.2 billion in 2006, up 14 percent from $10.7 billion in 2005
   
• R&D expenditures of $60.5 billion in 2004, ranked 1st nationwide

California’s National Industry Sector Rankings:

• 1st in computer systems design and related services with 172,600 jobs
   
• 1st in telecommunications services employment with 114,300 jobs
   
• 1st in semiconductor manufacturing employment with 67,600 jobs
   
• 1st in computer and peripheral equipment manufacturing with 59,100 jobs

Source: Cyberstates 2007

Data are for 2005 unless otherwise noted.

2005 state data are the most current available for employment, wages, payroll, establishments, and industry sector jobs.

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 with 2,500 member companies 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 04/23/07.    
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