Friday, November 21, 2003

AeANET : 11/19/2003 - U.S. High-Tech Industry Sheds More than One-Half Million Jobs in 2002, AeA Report Says:
"However, Decline in 2003 Has Slowed Dramatically"

A study released today by AeA shows that in 2002 the U.S. high-tech industry lost 540,000 jobs, dropping from 6.5 million to 6.0 million. A preliminary look at data for 2003 shows that the decline in high-tech employment slowed considerably in 2003. The report, AeA’s annual Cyberstates 2003: A State-by-State Overview of the High-Technology Industry, details national and state trends in high-tech employment, wages, exports, and other economic indicators.

The sector with the largest decrease in jobs was electronics manufacturing, accounting for more than half of all tech jobs lost between 2001 and 2002. For the first time in the seven years of publishing Cyberstates, the software sector recorded a loss of nearly 150,000 jobs last year. Indeed, the once-thriving software sector posted large increases in employment in all previous editions of Cyberstates. The communications services sector posted a similar loss of jobs. The engineering and tech services sector lost 15,000 jobs in 2002. The one bright spot was in R&D and testing labs, where employment increased by 7,000 in 2002.

"While high-tech employment fell by eight percent last year, preliminary 2003 data show a significant slowdown in high-tech job losses, with a decline of four percent," said AeA’s President and CEO William T. Archey. "We project that the 2003 high-tech job losses will total 234,000--down 57 percent from the 540,000 decline in 2002."

Archey further stated, "However, these declines have caused us to pause about two important issues. We are aware of current budget constraints, but now is not the time to cut back on education, particularly in math and science. We need a world class workforce to deal with world class challenges. Our second concern is the decline in basic research, particularly in technology, by the federal government. We worry that we have eaten the seed corn of federal research of 20 and 30 years ago that is not being replenished."

For the first time, Cyberstates 2003 is based on the newly implemented North American Industry Classification System (NAICS). AeA selected 49 NAICS codes to define the high-tech industry. They fall into four broad categories: electronics manufacturing, communications services, software, and engineering and tech services. This more current and comprehensive system allows us to capture several sectors which we could not with the previous system. These include fiber optic cable manufacturers, semiconductor machinery manufacturers, and web search portals.

This new industry classification system is fundamentally different from the old Standard Industrial Classification (SIC) system. Every sector of the economy has been restructured and redefined by the NAICS. Consequently, the data presented in this report are not comparable in any way to previous editions of Cyberstates. In this edition, however, 2001, 2002, and 2003 data use the NAICS system and are therefore comparable.

Cyberstates 2003 found that all but three states lost high-tech jobs in 2002. California lost the greatest number of tech jobs, shedding some 123,000 jobs. Texas was second with tech jobs down by 61,000 jobs. Interestingly, the District of Columbia, Wyoming, and Montana were the only three cyberstates to add technology jobs between 2001 and 2002.

http://www.aeanet.org/PressRoom/idmk_cs2003_US.asp

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