9 Out of Every 10 Computer/IT Jobs Went to H-1Bs

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Growth of Tech Employment Declines Sharply in 2001, AeA Report Says

Cyberstates finds 20 states lost tech jobs in 2001; Venture capital
funding down 62%

WASHINGTON, DC, June 26, 2002
- A study released today by AeA shows that in 2001 the U.S. high-tech
industry experienced its smallest employment increase in six years: up
only one-percent in 2001, compared to the nine-percent job increase in
2000. All told, the nation's tech industry added 80,000 technology
jobs to the U.S. economy in 2001, compared to 440,000 in 2000. The
report, AeA's Cyberstates 2002: A State-by-State Overview of the
High-Technology Industry, details national and state trends in
high-tech employment, wages, exports, and other economic indicators.

Nationally, the report reveals that high-tech manufacturing was the
hardest-hit of all technology sectors in terms of employment, losing
65,000 jobs last year, down three-percent from 2000.

The nation's software and computer-related services sector fared best
despite significant slowdowns, growing five percent in 2001. This
sector increased its workforce by some 100,000 jobs in 2001. Though
software has been a bright spot in the tech economy for almost a
decade, its 2001 performance pales compared to 2000 data when the
sector added more than 300,000 jobs.

"The 2001 data vividly demonstrates a trend that began about seven
years ago -- namely that the high-tech industry is increasingly
dominated by the software sector in terms of jobs and innovations,"
said AeA's President and CEO William T. Archey. "Software industry
innovation now permeates all other high-tech sectors, including
hardware design and manufacturing. Since 1995, manufacturing jobs have
increased by 46,000, while software and computer services jobs have
increased by 1.2 million."

Cyberstates 2002
found that twenty states lost high-tech jobs in 2001. Texas lost the
greatest number of tech jobs: a total of 3,000. South Dakota, however,
eliminated the greatest percentage of high-tech positions: 14 percent
of its entire high-tech workforce.

California added more high-tech jobs to its economic base than any
other state, increasing its workforce by 1.3 percent with 12,400 new
jobs. In 2000, for comparison, California's high-tech employment grew
by 13 percent by adding 113,000 new jobs.

The report shows that all but four states experienced a decline in
venture capital expenditures. Nationally, venture capital funding is
down 62 percent. More than half of the states also saw a drop in
high-tech exports in 2001.

The sixth annual edition of Cyberstates provides a comprehensive
review of the high-tech industry nationally and by state of high-tech
employment, wages, payroll, establishments, and exports. Cyberstates
also offers data on venture capital investments, R&D expenditures, and
home computer and Internet use.

Cyberstates 2002 Key Facts

U.S. Tech Employment Grew Slightly in 2001
* U.S. high-tech employment totaled 5.6 million in 2001, up just 1
percent from 5.5 million in 2000

* High-tech manufacturing industry employment fell by 3 percent,
losing 65,000 jobs between 2000 and 2001

* The biggest 2000-2001 job losses were recorded in electronic
components and accessories (-39,200), communications equipment
(-22,300), consumer electronics (-9,300), and computers and office
equipment (-6,400)

* Software and computer-related services industry employment only
jumped by 96,700 jobs in 2001, compared to more than 300,000 jobs
added in 2000

* Nearly three times as many software services jobs were added in
2000 (+143,000) than in 2001 (+50,700)

* Data processing and information services employment increased by
26,200 between 2000 and 2001, compared to 129,000 jobs added the
previous year

* Communications services employment jumped by 48,600 jobs between
2000 and 2001, down substantially from the 103,000 added in 2000

Twenty Cyberstates Lost Tech Jobs in 2001
* California (998,000), Texas (460,000), New York (364,900),
Massachusetts (252,400), and Florida (239,000) led the nation in
high-tech employment

* Texas (-3,000), Minnesota (-2,900), South Dakota (-2,100), Indiana
(-1,900), and Utah (-1,700) lost the greatest number of tech jobs
in 2001

* California (+12,400), Kansas (+6,800), Virginia (+4,300), Oregon
(+4,200), and New Jersey (+3,900) added the greatest number of
tech jobs between 2000 and 2001

* Colorado led the nation in concentration of high-tech workers in
2001, with 98 high-tech workers per 1,000 private sector workers

U.S. Tech Exports and Venture Capital Expenditures Fell in 2001
* U.S. high-tech exports fell to $189 billion in 2001, from $223
billion in 2000

* High-tech exports represented 26 percent of all U.S. exports in
2001

* High-tech exports dropped between 2000 and 2001 in every industry
segment, except in electromedical equipment manufacturing

* Venture capital investments in the U.S. totaled $41 billion in
2001, dropping 62 percent from the $108 billion in 2000

Exports and Venture Capital Expenditures Dropped in Top High-Tech
States
* All the nation's leading high-tech exporting states saw a drop in
tech exports between 2000 and 2001: California (-17%), Texas
(-15%), New York (-12%), Massachusetts (-21%), and Florida (-1%)

* Venture capital investments fell in all the nation's top tech
states in 2001: California (-62%), Texas (-47%), New York (-71%),
Massachusetts (-53%), and Florida (-69%) in 2001

AeA's Cyberstates 2002 consists of nine chapters detailing national
and state trends in employment, wage, and exports. Venture capital
investments, R&D expenditures, and computer and Internet home use are
also examined. The report includes state rankings for each indicator.
Cyberstates 2002 is based on the most recently available U.S.
government data.

Cyberstates 2002
is available to AeA members for $95 and to non-members for $190.
Contact AeA at 800.284.4232 or 408.987.4200, or www.aeanet.org.
Cyberstates 2002 is part of AeA's cyber report series which includes
Cybernation 2.0, CyberEducation 2002, and Cybercities.

NOTE TO EDITORS:
Press releases focusing on specific states were released on US
Newswire and are available on AeA's website

# # #
____________________________________________________________________

Advancing the business of technology, AeA is the nation's largest
high-tech trade association. AeA has more than 3,500 member companies
that span the high-technology spectrum, from software, semiconductors
and computers to Internet technology, advanced electronics and
telecommunications systems and services. With 18 regional U.S.
councils and offices in Brussels and Beijing, AeA offers a unique
global policy grassroots capability and a wide portfolio of valuable
business services and products for the high-tech industry. AeA has
been the accepted voice of the U.S. technology community since 1943.
____________________________________________________________________

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