WASHINGTON, DC – The U.S. high-tech industry lost 245,600 jobs in 2009, for a total of 5.9 million workers. This recession-induced, four percent decline in tech employment is slightly lower than the five percent decline experienced by the private sector as a whole and follows four years of steady growth in tech industry employment.
TechAmerica Foundation‘s 2009 quarterly breakdown revealed a bright spot amidst the losses – software services added 10,100 jobs in the fourth quarter, growing by one percent. Not only that, at TechJournal South we found that many venture-backed companies are hiring (see: Job Hunting?) even as larger firms such as IBM continue to shed jobs.
“While it weathered the storm better than the private sector at large, the U.S. high-tech industry clearly felt the effect of the recession in 2009,” said Christopher W. Hansen, president of TechAmerica Foundation. “Every corner of the industry experienced job losses, though software services, which helped tech hold up longer than most at the recession’s onset, saw growth in Q4 2009.”
Every high-tech sector saw employment losses in 2009. Of the 245,600 jobs lost, 112,600 were in manufacturing, concentrated in sectors like electronic components and semiconductors. Space and defense systems manufacturing was least affected with employment declining by 0.5 percent, or 1,200 jobs.
Engineering and tech services also saw a net loss of 59,000 jobs, as did communications services, shedding 53,000 jobs. Software services experienced the smallest decline, losing 20,700 jobs, or one percent.
Cyberstates 2010 relies on data from the U.S. Bureau of Labor Statistics. The report provides 2009 national data on tech employment as well as 2008 national and state-by-state data on high-tech employment, wages, establishments, payroll, wage differential, and employment concentration.
Tech America CEO and president Phil Bond warned that DC policy makers need to take decisive action to fuel a full tech job recovery.
“Without decisive action, policymakers in Washington might not see the recovery that we’re all hoping for,” said Bond.
“Washington could help put more of America’s brightest minds to work by enacting a comprehensive innovation agenda. We continue to look for leadership in key areas like tax policy, broadband deployment, and workforce to support the creation of more well-paying tech jobs across the country.”
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