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

Newport Beach, 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.

“California has long been the national leader in terms of size of the high tech industry,” said Peter Craig, Chairman of Valicore Technologies & AeA’s Orange County & Inland Empire Council. “But the state had been suffering job losses since the bursting of the tech bubble began in 2000. This latest job growth shows that our state has finally turned a corner. With the largest tech job growth of any state in the country, the Golden State is back on track.”

“Orange County continues to be a bastion of technological innovation within the state,” continued Craig. “But to maintain that status, we need to enhance our competitiveness as an industry, pushing our local leaders to invest in the education of our current and future workforce and supporting our cutting edge research institutions like UC Irvine. The research at those universities, and the researchers that make the breakthroughs, spawn the innovative companies that grow our economy and create high paying jobs for Orange County and the Inland Empire.”

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)

- # # # -

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.   
Copyright © 2007 American Electronics Association.   All rights reserved.