Massachusetts’s Tech Industry Adds 4,300 Jobs
Massachusetts Has the 2nd Highest Concentration of High-Tech Workers in the Nation

Woburn, MA (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.

Massachusetts's high-tech industry saw a net gain of 4,300 jobs – a rise of two percent – in 2005, the most current state data available. Massachusetts remained the 6th largest cyberstate employing 237,500 with a total payroll of $21.3 billion. Massachusetts boasts the second highest concentration of high tech workers with 86 out of every 1,000 private sector workers employed by the high-tech industry. These jobs are well compensated at an average of $89,700 – 78 percent more than the average private sector worker.

As with many states, Massachusetts’ telecommunication services sector saw a decline (-1,300 jobs) but was more than offset by impressive gains in sectors like R&D and testing labs (+1,900 jobs), computer systems design and related services (+1,700 jobs), and software publishers (+1,600 jobs).

Massachusetts continues to have a strong manufacturing base. The state’s measuring and control instruments manufacturing employment ranks 2nd nationwide (16,000 total jobs), consumer electronics manufacturing ranks 2nd (3,600 total jobs), and computer and peripheral equipment manufacturing ranking 3rd (16,200 total jobs).

“The high-tech industry is a vibrant and driving force in Massachusetts’ economy,” said Anne Doherty Johnson, Executive Director, AeA New England Council. “Growth in the tech industry is particularly vital because it generates cutting edge innovations and high paying jobs. But long term job growth is by no means assured. As with the rest of the country, the Bay State needs to focus on its own competitiveness if it intends to keep innovative technology companies and high paying jobs in Massachusetts.”

“While Massachusetts has some of the top universities in the country” continued Johnson, “they only benefit our economy if they can access both foreign and homegrown talent. These best and brightest conduct the research and start the companies that bring innovation, intellectual property, and high paying jobs to the state. We need to focus much more energy on improving math and science education in schools so our kids are prepared for our top universities. And we need to allow more of the world’s brightest scientists and engineers to come work in our state’s universities and tech companies.”

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 Massachusetts?

• 237,500 high-tech workers (6th ranked cyberstate)
   

• 4,300 jobs added between 2004 and 2005
   

• High-tech firms employed 86 of every 1,000 private sector workers in 2005, ranked 2nd nationwide
   

• High-tech workers earned an average wage of $89,700 (2nd ranked), or 78 percent more than Massachusetts's average private sector wage
   

• A high-tech payroll of $21.3 billion in 2005, ranked 5th nationwide
   

• 12,100 high-tech establishments in 2005, ranked 8th nationwide
   

• Venture capital investments of $2.8 billion in 2006, up 13 percent from $2.5 billion in 2005
   

• R&D expenditures of $16.3 million in 2004, ranked 3rd nationwide

Massachusetts’ National Industry Sector Rankings:

• 2nd in measuring and control instruments manufacturing employment with 16,000 jobs
   

• 2nd in consumer electronics manufacturing employment with 3,600 jobs
   

• 3rd in R&D and testing labs employment with 41,700 jobs
   

• 3rd in computer and peripheral equipment manufacturing employment with 16,200 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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