Technology Alliance Highlights Growth of Innovation Jobs in Washington, Measures Increasing Impact of Technology-based Industries on the Entire State Economy
Latest economic impact report finds technology sector employs more than 381,000 people and supports 42% of total jobs in the state
SEATTLE, WA – May 17, 2010 — The Technology Alliance today released the results of a new study of the size and impact of technology-based industries in Washington State. Chair Jeremy Jaech, CEO of Verdiem, shared highlights with more than 850 business, civic and government leaders at the organization’s 2010 State of Technology Luncheon in downtown Seattle.
The study, which was conducted by William B. Beyers of the University of Washington, examined employment data from the last half of 2008 and the first half of 2009. It is the sixth such study produced by the Technology Alliance measuring the contributions of Washington’s technology sector to the statewide economy.
In 2009, technology-based industries employed 381,546 people in Washington, or 13.2% of total covered employment. Through multiplier effects, these industries created an additional 826,643 jobs. All told, the study found that the state’s innovation sector supports in excess of 1.2 million jobs, equivalent to 42% of total Washington employment. With an average salary of $110,145 – compared to a state average of $57,654 – and 75% of sales out of state, Washington’s technology-based industries represent the largest share of employment, business activity and labor income of any major sector.
”Our state’s technology-based employment grew since our last study, even in the midst of tough economic times. So, ours is a good-news story,” remarked Jaech. “Because average compensation in the tech sector is nearly double the state average for all industries, these jobs produce a significant multiplier effect: every 100 jobs in tech can be attributed with 317 jobs in other sectors. From retail, to construction, to personal services, to recreation, innovation’s impact extends throughout our economy.”
“It is clear that our high-impact, high-growth industries are the ones that will lead our state out of the downturn.”
Technology-based employment also extends throughout the state’s 39 counties. While King County consistently accounts for the largest share of employment in this sector, with 233,475 jobs, 13 other counties have more than 1,000 technology-based jobs, with significant concentrations in Benton (18,739), Clark (12,793), Pierce (15,048), Snohomish (52,918) and Spokane (11,929).
The Technology Alliance has observed a shift from manufacturing to services-based employment since the release of its first economic impact report more than a decade ago. The latter category, which includes industries that produce intellectual property-based goods such as software, now accounts for 69% of Washington’s technology-based employment, compared to 39% in 1995. Over the past two decades, employment in software and other computer services industries has grown 756%.
Jaech emphasized that Washington’s innovation sector depends upon an educated workforce with diverse skills.
“It is important to recognize that software, aerospace and other high-tech industries don’t just employee scientists and engineers, although these knowledge workers are at the core of the value chain that makes these companies successful,” he commented. “There are also marketing and sales forces, administrative and technical support staff, legal and accounting professionals—we employ all of those people, too, who are vital for companies to function well and compete effectively.”
Jaech pointed to the increasing importance of innovation employment in the Washington economy in calling upon the state to continue moving forward on K-12 education reform and reverse the decline of public support for higher education institutions.
“We need to better appreciate what an essential jobs engine the tech sector is for our state,” said Jaech, “and we must let this be our guide when it comes to formulating state policy.”
“Our economy requires it, and our kids deserve it.”