Consumer tech industry supports more than jobs, report says
Stephen LawElectronics Engineering tech jobs
For every tech job created, another 2.25 jobs are created in the economy
As US President-elect Donald Trump met with leaders in the technology community yesterday, the Consumer Technology Association (CTA) has released a new report that details just how significantly the consumer tech industry drives U.S. economic activity and American jobs. In 2015, the tech industry supported 15 million jobs, generated $413 billion in taxes and created $3.5 trillion in total economic output, according to CTA’s U.S. Economic Contribution of the Consumer Technology Sector report.
“This study underscores the fact that the consumer technology industry is a critical component of our nation’s economy, accounting for total economic activity that amounts to over 10 percent of U.S. GDP,” says Gary Shapiro, president and CEO, CTA. “Building on the foundation of dialogue set today, our industry and the Trump administration must build a partnership aimed at driving innovation to maintain U.S. leadership in global competitiveness, creating high-paying U.S. jobs and bringing the benefits and opportunities presented by the tech economy to all Americans. We remain committed to working with the Trump administration and the Congress to support the President-elect’s agenda of creating better paying American jobs and growing our economy. We can start by focusing on areas of mutual interest that will unleash American innovation, including reducing stifling regulations, lowering corporate taxes, repatriating corporate profits, investing in our infrastructure and implementing strategic immigration reform.”
The report, conducted by PwC, found for every tech job created, another 2.25 jobs are created elsewhere in the U.S. economy, and as a result the tech sector accounts for 8.4 percent of total U.S. employment. The study also shows the average annual compensation for tech jobs is over $92,000, compared to a national average of $58,000 in the overall economy.
The report also found:
* In 22 states, consumer tech manufacturing, content and services and distribution directly and indirectly created at least $50 billion in total economic output.
* Exports of goods and services directly and indirectly attributable to the consumer tech sector amounted to $379 billion, or 17 percent of total U.S. exports.
* 1.5 million U.S. jobs rely on consumer tech exports.
* The sharing economy has the potential to grow from $15 billion in 2015 to $335 billion in 2025.
“Every day, innovative thinking from our industry is creating new ways to address age-old challenges and improve our world: from self-driving cars’ potential to save lives, to remote access care enabled by the Internet of Things that is revolutionizing and expanding patient care, to VR technology used by armed forces for medical emergency response,” says Shawn DuBravac, Ph.D., chief economist, CTA. “Our new study demonstrates that the tech industry is not only changing our lives for the better – it’s also driving the U.S economy, creating high-wage jobs and cementing our country’s position as a global leader in innovation.”