Tech Employment Grows Fastest Across All Industries in 2016
According to Cyberstates 2017™, CompTIA's annual analysis of the U.S. tech industry, America's tech payrolls grew nearly three times faster than the rest of employees in 2016. Net new jobs totaled 182,000 in 2016, up nearly 3% and approximately 10% of all jobs added in the economy.
U.S. tech sector employment grew by nearly 3% in 2016, approaching seven million workers. Tech occupations across all other industries – the second component of the nation’s technology workforce – increased by 2%, to an estimated 7.3 million workers.
About 60% of 2016 job gains occurred in IT services and custom software services. This category was also responsible for adding the most new tech business establishments in 2016 – more than 5,000 companies. Over the past five years, this sub-sector has added an estimated 48,826 new business establishments, a growth rate of 24%.
Top tech markets
The top 10 states for tech sector employment are California, Texas, New York, Florida, Massachusetts, Virginia, Illinois, Pennsylvania, Washington, and Michigan. California's total pool of tech workers – nearly 1.2 million – is more than double the number of such employees in Texas, the nation's second-largest tech state.
Other highlights from the report
- America's tech sector employment grew by nearly 3% last year, compared with just 1% across all industries.
- The tech sector employs approximately 4.4% of the total U.S. workforce, which is more than those employed in finance/insurance or construction.
- The annualized average wage for a tech industry worker was an estimated $108,900 in 2016, more than double the average national wage ($53,040).
- 35 states and the District of Columbia generated positive tech sector job growth in 2016, while 15 states experienced declines.
- The top five states for 2016 job growth on a percentage change basis were Utah (6%), North Carolina (5.9%), Michigan (5.1%), Washington (4.9%), and Montana (4.5%).
- The number of tech startups and new tech business establishments increased by 12% in 2015 (the most recent year of available data).
- U.S. tech business establishments grew for the fifth consecutive year, to 492,550 in 2016. Nearly every state (47) added to their base of tech businesses, with Texas (911 new establishments) leading the way.
- Since 2010, the tech sector has recorded a net gain of 864,420 jobs.
“Digital transformation continues to be a driving force,” said Tim Herbert, senior vice president, research and market intelligence, CompTIA. “Organizations of all sizes are embracing cloud-based technology solutions, expanding their mobile presence, fortifying cyber defenses and driving decision-making through advanced data analysis.”