Technology Industry Job Losses Decline in 2010

The technology industry, despite still laying off employees, did not layoff as many employees in the year 2010 as it had in recent years. This is a success for the industry, as it would be for any other industry. In 2010, the United States technology industry lost a net of 115,800 jobs for a total of 5.75 million employees.

The jobs lost marks a two percent decline in the amount lost and the total number is less than half of the 249,500 jobs lost in the year 2009. The jobs lost in 2009 came after the industry sustained a couple years of growth. From 2007 to 2010, which is considered the height of the recession, the technology industry suffered from a four percent decline in employment compared to a seven percent decline in employment in the private sector.

“Of the four high-tech sectors highlighted in our report, only software services added jobs in 2010—22,800, a 1 percent gain,” said Robert Bennett, chairman of the TechAmerica Foundation.  “Of the jobs lost, 72,100 were in communications services, 53,600 were in tech manufacturing, and 12,900 were in engineering and tech services. Fortunately, the initial numbers for 2011 look more promising in terms of job growth.”

Between the months of January and June of 2011, the technology industry in the United States added a net of 115,000 jobs, which is good enough for a two percent gain. During the same period, all four sectors of the technology industry experienced growth with the best sector being engineering and tech services. A 12-month review of June 2010 compared with June 2011 showed that there was growth in three of the four sectors of the technology industry, with job losses occurring in the communication services sector.

“Tech jobs were down in 2010, trending with the rest of the economy, but we have fared better than the private sector as a whole over the course of the economic downturn, and there are some positive signs for 2011, said Phillip Bond, president and CEO of TechAmerica. “We are poised not only to grow our own industry but to support the growth of the economy as a whole. The key to growth is to support what we call the Four T’s: technology, talent, tax and trade.”

Bond went on to discuss the following:

“The country needs robust federal investment in basic research to create the scientific base that companies can use to produce new products and innovations and needs to invest in science, technology, engineering and mathematics (STEM) education to provide the next generation with the foundation in math and science.”

The data shows that only eight states in the country actually added jobs in the technology industry in 2010. Michigan added 2,700 jobs, the District of Columbia added 1,400 jobs, West Virginia added 400 jobs, Utah added 400 jobs and South Carolina added 300 jobs. The District of Columbia saw the best growth out of all the leaders with 4.3 percent. For the sixth consecutive year, Virginia led the country with the highest concentration of technology workers; 98 of every 1,000 workers in the private sector workers within the state were employed in the technology industry.