Technology Sector Report – The Economic Impact of the Technology Sector in New Jersey
Can you live without your cell-phone? Or all the technology devices that you use on a daily basis? Probably not! Your iPhone, for example, is becoming an essential part of your life. I bet the first thing you look at in the morning is your cell phone, not your spouse or your child or anything else. Thus, the technology industry is one of the most important industry in today’s economy because consumers rely on their products and services. It also provides a significant economic boost to an economy.
New Jersey is well-known to be the hub of innovation and home to advanced industries, such as the technology industry. It employs over 360,000 workers and contributes $43 billion in wages.
Which industries represent the technology sector in New Jersey? The technology industry includes 31 different industries, such as oil and gas extraction, power generation and supply, petroleum and coal products manufacturing, basic chemical manufacturing, pharmaceutical and medicine manufacturing, communications equipment manufacturing, software publishers and computer systems design. The table on the left shows the New Jersey technology industry cluster.
The technology industry employs over 366,000 individuals or almost 10 percent of all private jobs. From 2006 to 2016, employment in the sector peaked in 2007 to 392,970 but declined during the Great Recession from 2007 to 2009. Employment has been on the rise since 2012, growing from 354,130 in 2012 to 366,330 in 2016 (see chart on the right). This trend is expected to grow due to the strong labor market, business confidence, and consumer confidence.
Technology employees work in high-income counties that are home to vibrant cities. Middlesex County (55,380), Bergen County (41,010), Morris County (37,470), and Somerset County (34,030) have the highest employment concentration in the state. The counties that have the lowest employment numbers are Salem (3,150), Sussex (1,970), Warren (1,880), Cumberland (960), and Cape May (740).
Employment in computer design accounted for approximately 20 percent of total employment (366,330). The five leading sectors that employ technology workers are computer systems design and related services (72,890), management and technical consulting services (45,860), architectural and engineering services(37,370), scientific research and development services (30,440) and commercial equipment merchant wholesalers (28,260).
The technology industry provides high paying jobs. The annual average is more than $118,210 (2016), $55,000 higher than all yearly private sector industry averages. Additionally, companies in New Jersey paid over $43 billion in wages.
The technology industry footprint is expected to continue to improve in New Jersey. The Garden State’s location makes it an attractive market for the technology industry. Also, the state offers talented labor force that helps attract entrepreneurs and their companies.
Source: New Jersey Labor Department