Illinois’ Tech Industry Adds 3,600 Jobs
Illinois Ranks 4th by Tech Industry Employment in Four Manufacturing Sectors

Oakbrook Terrace, IL (April 2, 2008) – AeA, the nation’s largest technology trade association representing all segments of the high-tech industry, today released its 11th annual Cyberstates report detailing national and state trends in high-tech employment, wages, and other key economic factors. The report, Cyberstates 2008: A Complete State-by-State Overview of the High-Technology Industry, covers all 50 states, the District of Columbia, and Puerto Rico.

Illinois's high-tech industry added 3,600 net jobs in 2006, the most current state data available. Despite this growth, Pennsylvania grew faster dropping Illinois one slot to the 8th largest cyberstate. Illinois's tech industry employed 209,300 tech industry workers with a total payroll of $16.1 billion in 2006.

Illinois ranked 4th by tech industry employment in four manufacturing sectors: electronic components (12,500 total jobs), measuring and control instruments (11,400 total jobs), communications equipment (9,400 total jobs), and consumer electronics (1,500 total jobs).

Job gains were fueled by the computer systems design and related services sector, which added 3,700 net jobs. Engineering services followed with a gain of 1,200 jobs net jobs. These sectors offset losses concentrated in telecommunications services (-1,500 jobs), electronic components manufacturing (-600), and communications equipment manufacturing (-600 jobs).

Venture capital investments In Illinois rose by 24 percent for a total of $510 million in 2007, up from $410 million in 2006. This ranks Illinois 12th nationwide by this metric.

“The good news is that, aside from telecommunications and tech manufacturing, Illinois’ services sectors grew and we attracted additional investment for technology-based companies,” said Marty Singer, PCTEL’s Chairman and CEO and the Chairman of AeA’s Midwest Council. ”On the other hand, we are discouraged that many of our telecommunications and tech manufacturing sectors continue to shed jobs, some migrating outside of the state,” added Singer. 

“The government is failing to respond to this threat. Instead of funding programs to improve math and science curricula and encouraging highly skilled foreign students to stay in Illinois, we have political pressure for a Gross Receipts Tax that will drive businesses to the west and an unfriendly federal approach that encourages skilled foreigners to support business efforts outside the U.S,” continued Singer. “Our leaders in Washington must honor the promises they made in 2007 to dramatically increase investment in research and education and the state legislature needs to address the poor state of math and science education in the K-12 system,” concluded Singer.

Nationally, Cyberstates 2008 shows that the high-tech industry added jobs for the third consecutive year. Tech industry employment totaled 5.9 million, after adding 91,400 jobs in
2007. This is on top of job gains of 139,000 in 2006 and 87,400 in 2005.

This 11th 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.

Two other major AeA cyber reports are forthcoming that analyze the U.S. high-tech industry: Cybercities 2008: An Overview of the High-Technology Industry in the Nation’s Top 60 Cities, and Trade in the Cyberstates 2008: A State-by-State Overview of High-Tech International Trade.

AeA members can purchase Cyberstates 2008 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 Illinois?

• 209,300 high-tech workers in 2006 (8th ranked cyberstate)
   

• 3,600 jobs added between 2005 and 2006
   

• High-tech firms employed 42 of every 1,000 private sector workers in 2006, ranked 29th nationwide
   

• High-tech workers earned an average wage of $77,100 (14th ranked), or 68 percent more than Illinois's average private sector wage
   

• A high-tech payroll of $16.1 billion in 2006, ranked 8th nationwide
   

• 16,100 high-tech establishments in 2006, ranked 5th nationwide
   

• Venture capital investments of $510 million in 2007, up 24 percent from $410 million in 2006, ranked 12th nationwide
   

• R&D expenditures of $11.3 billion in 2004, ranked 8th nationwide

Illinois’s National Industry Sector Rankings:

• 4th in measuring and control instruments with 11,400 jobs
   

• 4th in electronic components manufacturing employment with 12,500 jobs
   

• 4th in communications equipment manufacturing employment with 9,400 jobs

Source: Cyberstates 2008

Data are for 2006 unless otherwise noted.

2006 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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This page was last updated on 03/31/08.             
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