High-tech grew by 77,000 jobs last year

Despite losing 38,000 jobs during the fourth quarter, the U.S. high-tech sector had a net gain of more than 77,000 jobs last year, according to a report released today by a Washington, D.C., advocacy group.

"That almost seems difficult to believe, given everything that's happened," said Josh James, director of research and industry analysis for TechAmerica, which represents more than 1,500 companies.

"The way we're putting it is, we've weathered the storm a little bit better than some other sectors," he said.

Last year was the fourth in a row the tech industry added jobs, but the gains were only in software services, up 86,000 jobs, and engineering and tech services, up 26,600. More than 35,000 jobs were lost in high-tech manufacturing and communications services.

Although the industry lost jobs during the fourth quarter, the drop was only 0.6 percent, while employment in the total private sector fell 1.3 percent, or by more than 1.5 million jobs.

Even in the dismal fourth quarter, software services added more than 12,000 jobs.

"New investments in technology can enable companies to compete more effectively in a challenging economic climate, so they continue to be made, albeit at a slower rate," said Drew Erickson, director of finance operations for the Washington Technology Industry Association.

"Many startups are looking at the long term, so near-term economic problems don't affect them quite as much," Erickson said.

"Of course, it's more difficult right now for early-stage tech companies that need new funding. Those lucky enough to have gotten additional financing before last fall may have enough in the bank to ride out the downturn while they develop new products and services," Erickson said.

Researchers acknowledged the recession deepened at the end of the year, making it less certain national statistics for 2009 will be as optimistic.

"Although the U.S. high-tech industry continued to add jobs in 2008, future growth is clearly jeopardized as a result of the current economic downturn and the volatility of global financial markets," TechAmerica CEO Christopher Hansen and TechAmerica President Phillip Bond wrote in the report's summary.

"Our industry has weathered the storm longer than most, but recent announcements of job cuts at technology companies suggest that a fifth straight year of growth is — at best — questionable," they said.

The report includes a state-by-state analysis of gains and declines in the tech industry from 2007 to 2008, based on data from the U.S. Bureau of Labor Statistics, the most recent available.

Washington state's high-tech industry grew by 11,300 jobs in 2007, third in the nation in tech-sector growth.

Washington trailed only Texas, which added 14,700 tech jobs, and Georgia, which added 13,100.

North Carolina, with 5,500 more jobs, and Virginia, with 5,300, rounded out the top five.

The report found that most states added tech jobs between 2007 and 2008.

Thirteen states, including Florida, Michigan and Delaware, each experienced a decline of more than 1,000 high-tech jobs.

The District of Columbia, which shrunk by 3,000 tech jobs, reported the largest loss.

Idaho, with a loss of 2,500 jobs, experienced the second-largest decline.

National unemployment rates for tech workers increased slightly to 2.4 percent for computer scientists and 2.5 percent for engineers in 2008 but remain far below the national unemployment rate.