Friday’s news that the unemployment rate had dropped to 8.5 percent, the lowest in three years, was a welcome sign of economic recovery. Members of the Obama Administration on the news, keen to highlight this positive data as the President readies himself for a tough where the economy will be the major issue.
One of the untold tales of Friday’s figures relates to the impressive recovery that the tech sector has made since the onset of this economic crisis. The Bureau of Labor Statistics measures the technology industry by looking at three areas – computer systems design, management and technical consulting services, and science R & D. The first chart shows the unemployment rate from 2008 to the present day, and the charts that follow demonstrate the growth in employment in the tech sector during the same period.
As we can see, the tech industry continued to add jobs even as national unemployment increased sharply as the economic crisis took hold. This job growth slowed in tandem with the rising unemployment rate, but began to bounce back in 2010. In fact, the job growth rates in science R & D and computer systems design were back to pre-crisis levels by as early as summer 2010, while employment in management and technical consulting services was back at pre-crisis levels by early 2011. The overall unemployment rate has dropped but is a long way off its pre-crisis level.
What explains this phenomenon? All signs point to the tech sector’s ability to innovate. While other industries have concentrated on cutbacks and downsizing, technology firms have thrown themselves into creating new products and services that have, in turn, engendered strong consumer demand. Such a strategy has borne fruit for companies like Apple, which has weathered the economic storm to recently become the . Furthermore, initiatives like “” (where shoppers spent $1.25 billion) have also helped boost sales in the tech industry and enabled it to hire staff at an impressive rate. At the core though, is the fact that the technology industry has always been ahead of the curve. These employment figures are simply the latest illustration of the trend.
Techelectorate: What tech issues do you want your candidate to focus on to continue this trend in employment? Tweet @TechElect and the candidates with your thoughts. And share your thoughts below!