March 19, 2003 – Washington – A study released today by AeA shows a decline of 560,000 high-tech jobs in the United States over the two-year period from January 2001 to December 2002.

The nation’s high-tech industry reduced its work force by 560,000 with tech employment dropping from 5.7 million jobs in January 2001 to 5.1 million jobs in December 2002.

“The data would strongly suggest that there is a need for economic stimulus including the President’s package and specific proposals backed by the high-tech industry, such as the Homeland Investment Act, and others,” said AeA’s President and CEO William Archey.

High-tech manufacturing employment shrank by 415,000 jobs, a 20% drop, between January 2001 and December 2002. The nation’s communications services industry saw a 9% decline in its employment base with a loss of 135,000 jobs during the same period.

The report also revealed that food products and transportation equipment manufacturing now employ more workers than the high-tech manufacturing industry, which had been the largest manufacturing sector in the United States.

“On the positive side, software services actually increased by 5,300 jobs,” Archey added. “This is consistent with the fact that many of the innovations in the high-tech industry are driven by software.”

The study is based on monthly employment data from the US Bureau of Labor Statistics.