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51 of the Nation's Top 60 Metropolitan Areas Add High-Tech Jobs |
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Seattle Adds the Most Jobs at 7,800, followed by New York and
Washington, DC
One in Four Private Sector Workers in Silicon Valley Are in the Tech
Industry
AeA, the nation's
largest technology trade association representing all segments of the
high-tech industry, today released Cybercities 2008: An Overview of the
High-Technology Industry in the Nation's Top 60 Cities. This report
examines the high-tech industry in the nation's largest metropolitan areas
focusing on high-tech employment, wages, establishments, payroll,
employment concentration, and wage differential. The report also compares
different regions of the United States and delves into the 16 sectors that
comprise AeA's definition of the high-tech industry for these 60 cities.
Cybercities 2008 shows that 51 "cybercities" added high-tech jobs in
2006, according to the most recent metropolitan data available. Seattle led
the nation, adding 7,800 net jobs. The next largest net gains in high-tech
employment between 2005 and 2006 occurred in the New York Metro Area
(+6,400) and Washington, DC (+6,100). On a percentage basis, Riverside-San
Bernardino, California saw the fastest job growth in 2006 at 12 percent.
"This is the first national Cybercities report AeA has published since
2000, before the high-tech bubble burst," said Christopher Hansen,
President and CEO of AeA. "With the industry experiencing three consecutive
years of job growth, we decided it was time again to drill down to see
which cybercities are growing the fastest and across which sectors.
High-tech jobs make critical contributions to local economies in terms of
innovation. They also pay extremely well -- the average tech industry wage
is 87 percent higher than the average private sector wage. Fifty-six
cybercities had wage differentials higher than 50 percent and three
cybercities -- Austin, San Diego, and Sacramento -- had differentials
higher than 100 percent."
"These are the types of jobs every city wants," continued Hansen. "But
how to attract and retain them is the key question all mayors, city council
officials, and local business leaders grapple with. All of these
cybercities compete not only with each other for such critical factors of
innovation as talent and capital -- they compete with technology centers
across the globe. City leaders need to ensure the quality of local K-12
education, particularly in math and science, to prepare children for these
high-paying careers. They need to support vibrant research universities
from which so many start-up companies are formed. They need to invest in
modern infrastructure, including reliable broadband networks that are as
critical to economic development today as the electrical grid was a hundred
years ago. And lastly, cities must create a business friendly environment
that attracts venture capital and cutting edge companies."
"AeA is concerned that future job growth will be jeopardized unless the
United States prepares itself for a vastly more competitive global
marketplace," concluded Hansen. "Many of these challenges cannot be solved
at the local level. They are caused by the negligence of our national
political leaders to fund legislation that invests in math and science
scholarships and scientific research. They refuse to take a simple measure
that would cost the taxpayer nothing and would allow the best and brightest
from around the world to work in the United States instead of competing
with us from abroad. This shows that far too many decision makers in
Washington simply do not understand that the world has become a
dramatically more competitive place and we have to adapt or we'll be left
behind."
The leading metro areas by high-tech employment in 2006 were the New
York Metro Area (316,500 jobs), Washington, DC (295,800 jobs), San
Jose/Silicon Valley (225,300 jobs), Boston (191,700 jobs), and Dallas-Fort
Worth (176,000 jobs). 2006 data are the most recent available at the
metropolitan level.
San Jose/Silicon Valley led the nation in concentration of high-tech
workers in 2006, with 286 high-tech workers per 1,000 private sector
workers. Boulder ranked second in 2006, with 230 high-tech workers per
1,000 private sector workers. Huntsville, Durham, and Washington, DC
rounded out the top five by high-tech concentration.
San Jose/Silicon Valley dominated the manufacturing sectors. It ranked
near the top in seven of the nine high-tech manufacturing categories. The
New York Metro Area led in many of the tech service sectors, with the
highest employment in telecommunications, Internet services, R&D and
testing labs, and computer training services. Washington, DC led in
computer systems design and related services and engineering services, with
nearly three times as many industry workers in these fields as San
Jose/Silicon Valley.
Cybercities 2008 is a sister publication to AeA's annual Cyberstates
report, which for 11 straight years has examined the high-tech industry
across all 50 states, the District of Columbia, and Puerto Rico.
All statistics in Cybercities 2008 are based on U.S. Bureau of Labor
Statistics (BLS) data, which are collected from all businesses in the
United States. Metropolitan employment, wage, establishment, and payroll
data are for 2006, the most recent available at publication. The
metropolitan data in Cybercities 2008 is directly comparable to the 2006
state data in Cyberstates 2008. Cybercities 2008 also contains the most
recent national data on the high-tech industry, including employment
statistics for 2007.
One other major AeA cyber report is forthcoming later this summer:
Trade in the Cyberstates 2008: A State-by-State Overview of High-Tech
International Trade.
AeA members can purchase each of these reports for $125; non-members
for $250. Please visit http://www.aeanet.org/cyberstates for more information, or
call 408.987.4200.
Cybercities 2008 Key Facts
51 Cybercities Added Tech Jobs in 2006
-- The leading metro areas by high-tech employment in 2006 were the New
York Metro Area (316,500), Washington, DC (295,800), San Jose/Silicon
Valley (225,300), Boston (191,700), and Dallas-Fort Worth (176,000).
2006 data are the most recent available at the metro level.
-- Seattle led the nation in net tech job creation in 2006, adding 7,800
jobs.
-- The next largest net gains in tech employment between 2005 and 2006
occurred in the New York Metro Area and Washington, DC, adding 6,400 and
6,100 respectively.
-- On a percentage basis, Riverside-San Bernardino saw the fastest job
growth in 2006 at 12 percent.
-- San Jose/Silicon Valley leads the nation in concentration of high-tech
workers in 2006, with 286 high-tech workers per 1,000 private sector
workers.
-- Fifty-six cybercities had wage differentials higher than 50 percent and
three cybercities -- Austin, San Diego, and Sacramento -- had
differentials higher than 100 percent.
Source: Cybercities 2008 is based on U.S. Bureau of Labor Statistics
data.
NOTE TO EDITORS: Press releases focusing on over 30 specific cities
were released on US Newswire and are available on AeA's website,
http://www.aeanet.org.
About AeA
AeA, founded in 1943, is a nationwide trade association that represents
all segments of the technology industry and 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.
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