High Tech Job Trends
A number of recent reports show job growth attributed to the stimulus measures: The Council of Economic Advisors (CEA) shows a creation/retention of 2.5 to 3.6 million jobs over what it would otherwise have been. The Congressional Budget Office (CBO)’s May report indicates that the Recovery Act has created between 1.2 million and 2.8 million workers, and projects up to 3.7 by the end of Q3.
The fiscal stimulus increased substantially in the first quarter of 2010 and further in the second quarter (from $80 billion in the fourth quarter of 2009 to $108 billion in the first quarter of 2010 to $116 billion in the second quarter of this year). Government investment in areas such as infrastructure, clean energy, and communications technology increased by roughly 50 percent between the first and second quarters of 2010.
According to statistics from Dow Jones VentureSource, $7.7 billion of venture capital was invested in 744 deals for U.S.-based companies during the second quarter of 2010. This is the highest quarterly total for capital invested since $8.4 billion was put into 699 deals during the third quarter of 2008.
A press release by Dow Jones reports that: Information Technology and Healthcare continued to be the strongest industries for deals closed and dollars invested though; IT garnered the largest proportion of deals but Healthcare claimed more dollars. In IT, 231 deals raised $1.9 billion, up from the second quarter of 2009, which saw 208 deals raise $1.6 billion. Software garnered the largest slice of capital as 156 deals raised $908 million, up from the 132 deals that raised $761 million in the second quarter of last year.
This public and private investment means jobs. The CEA reports on public jobs saved or created in the first two quarters of 2010, with a total projection though 2012. IT related jobs are charted within the “Health and Health IT”, and Broadband categories, but also benefit from smart grid (infrastructure) and other categories such as economic development and scientific research.
Information Technology investment is focused on two primary areas in the Recovery Act: Health IT and Broadband. In terms of the dollars invested via the Recovery Act, the CEA report documents the following:
- $26 billion for Health Information Technology for Economic and Clinical Health (HITECH), to make progress on the Nation’s transition to health information technology (IT) by 2014. The majority of HITECH funding will be spent on Medicare and Medicaid incentive payments for physicians and hospitals who achieve
- $7.2 billion to upgrade the Nation’s broadband infrastructure.
- Which includes $4.7 billion to the Department of Commerce’s National Telecommunications and Information Administration (NTIA) to deploy broadband infrastructure, support computer centers, and encourage adoption of broadband.
- The remaining $2.5 billion was directed to the Department of Agriculture’s Rural Utilities Service (RUS) to expand broadband access in rural areas.