Washington’s Tech Industry Adds 6,300 Jobs
Venture Capital Investments in Washington Up 27 Percent in 2007

Lynnwood, WA (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.

For the third year in a row, Washington’s high-tech industry added jobs, up 6,300 for a total of 162,800 in 2006, the most current state data available. Also encouraging is that in 2007, venture capital investments in Washington rose by 27 percent, to just over $1.3 billion, the 4th highest in the country.

Washington’s largest and fastest growing sector remains software publishers, which grew by 3,500 net jobs in 2006 for a total of 44,600 jobs. Washington ranks 1st in the country in this sector, ahead of California. Other sectors that experienced significant growth in 2006 included computer systems design and related services (+3,200 jobs) and Internet services (+1,000 jobs).

"Washington’s tech industry remains strong, experiencing it's third year of job growth with average wages that are more than double those of the private sector,” said J.D. Hammerly, Vice President, Energy Infrastructure. "While many people associate Washington state with the software industry, they may not realize how fast it continues to grow. This growth runs on the knowledge and intellectual capital of some of the smartest and most skilled workers in the world. Washington's challenge is that we are not graduating enough scientists and engineers to maintain this growth. All you have to do is look at the websites of our technology companies – large and small – and you’ll find thousands of positions going unfilled."

"Our Evergreen state needs to do more to prepare our workforce for careers in the tech industry, from the K-12 system to our universities,” continued Hammerly. “AeA and our member companies have been working to increase the science, math, and engineering skills of our children. These are long-term solutions, however. In the short term, we need to open our door to talented foreign nationals, who are often educated at American universities. It is criminal that we force them out of the United States, instead of keeping them here to create new technologies for our companies."

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 Washington?

• 162,800 high-tech workers in 2006 (13th ranked cyberstate)
   

• 6,300 jobs added between 2005 and 2006
   

• High-tech firms employed 69 of every 1,000 private sector workers in 2006, ranked 9th nationwide
   

• High-tech workers earned an average wage of $89,400 (4th ranked), or 110 percent more than Washington's average private sector wage
   

• A high-tech payroll of $14.6 billion in 2006, ranked 10th nationwide
   

• 7,200 high-tech establishments in 2006, ranked 16th nationwide
   

• Venture capital investments of $1.3 billion in 2007, up 27 percent from $1.0 billion in 2006, ranked 4th nationwide
   

• R&D expenditures of $10.9 billion in 2004, ranked 10th nationwide

Washington's National Industry Sector Rankings:

• 1st in software publishers employment with 44,600 jobs
   

• 8th in electromedical equipment manufacturing employment with 3,600 jobs
   

• 13th in R&D and testing labs employment with 19,700 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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About AeA

AeA, the nation’s largest technology trade association, 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 03/27/08.               
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