Recent stats from NH’s tech sector have been lukewarm, according to CompTIA’s annual Cyberstates report on the industry. The report includes national data, state breakdowns and rankings based primarily on data from the U.S. Bureau of Labor Statistics.
“The news is a mixed bag,” says Matt Cookson, executive director of the NH High Tech Council. “First, it shows how important the tech sector is in driving New Hampshire’s economy in terms of wages and gross state product. We are also seeing an uptick in patents filed and venture capital dollars invested in New Hampshire tech companies, which is very good news.”
However, Cookson says that other data from the report provide an area of concern, specifically in terms of sector growth. Pertinent NH figures from the report include:
- Only 401 tech jobs were added in NH beetween 2014 and 2015, a growth of 1 percent. The state's tech employement only grew 6 percent since 2009, ranking 38th nationally.
- Ranked 26th for tech sector patents granted by state.
- Ranked 24th for venture capital funding by state at $125.7 million.
- Average wages are $100,682, ranking the state 13th but below national average. This is still nearly double the average private sector wage.
- Ranked 33 for total tech employment, with employment remaining stable year over year.
- 7.3 percent of private sector workers work in the tech industry, ranking ninth nationally.
- Tech payroll is 14.1 percent private sector payroll.
- Tech establishments make up 8.3 percent of private sector establishments, ranking sixth nationally.
- New Hampshire is 32nd in amount of female employment at 33.5 percent, just below national average of 33.8 percent.
- Fourth lowest unemployment rate nationally.
- Tech Gross State Product was 8.7 percent, ranking seventh nationally. The total for 2013 was $5.858 billion.
“This report shows that we only grew jobs in tech by 1 percent last year, and have been on this slow growth since the data has been tracked, averaging 1 percent since 2009,” says Cookson. “When we look at this in conjunction with additional reports we receive on tech jobs listed and hires made, we are lagging in filling positions and that will inhibit the sector’s growth until we can expand the potential job pool. In short, this report confirms that while we have a strong tech sector, we must develop creative ways to find, grow and train more people on the skills needed in the tech workplaces today and into the future.”
Nationally, the U.S. technology industry added nearly 200,000 net jobs in 2015 and now employs more than 6.7 million people, according to the report. There were 46 states that had an overall net increase in tech industry jobs in 2015; and the average tech industry wage was more than double that of the average private sector wage. An American tech industry worker averages an annual wage of $105,400 compared to $51,600 for the average private sector wage.
“The U.S. tech industry is a major driving force in the overall economy, accounting for 7.1 percent of overall GDP and 11.6 percent of total private sector payroll,” says Todd Thibodeaux, president and CEO of CompTIA. “The tremendous level of ongoing innovation in the industry, making technology more affordable and accessible to more users, has us encouraged about growth prospects for 2016 and beyond.”
Growth was once again led by the IT services sector, which added more than 105,000 jobs between 2014 and 2015.
“Much of this growth can be attributed to the current trends in cloud computing, mobility, automation and social technologies that are reshaping businesses large and small,” says Tim Herbert, senior VP of research and market intelligence for CompTIA. “Momentum behind the Internet of Things (IoT) continues to grow, while the critical importance of cybersecurity shows no signs of abating.”
At the state level, the largest jobs gains were recorded in California (+59,500), New York (+15,500), Texas (+13,800), Massachusetts (+11,700), and Florida (+11,400). The states with the highest concentration of tech workers were Massachusetts (9.8 percent of private sector employment), Virginia (9.5 percent), Colorado (9 percent), Maryland (8.6 percent), and California (8.2 percent). The largest states by tech industry employment continue to be California, Texas, and New York.
The full report and individual state breakdowns may be found here.