The technology sector is an ’employment multiplier’ and the key driver of the US economy, according to the Consumer Technology Association’s latest research report, which reveals that every new job created in the tech sector leads to the creation of three jobs in other sectors.
In addition, every US dollar of economic activity in tech drives another $1.03 elsewhere in the economy.
The consumer tech sector directly and indirectly supports 18.2 million US jobs, provides US$1.3 trillion in annual wages, contributes US$503 billion in annual taxes and adds US$2.3 trillion to the nation’s economy, the report states.
“That’s proof the US tech sector is an essential driver of our nation’s economy. And the effects go beyond just the products our industry sells – we drive productivity for virtually every sector of the economy,” said Gary Shapiro, president and CEO of CTA.
The report was prepared by PricewaterhouseCoopers for the association.
In 2017, the consumer technology sector supported 100,000 jobs in 34 US states, with California, Oregon, Massachusetts, Colorado, and Georgia netting the lion’s share of the revenue generated by the sector.
Exportation of goods and services by the sector supported annual economic activity worth around US$302 billion, the report states, while 1.2 million US jobs are reliant on consumer tech exports.
“The growth of the tech industry is emblematic of the growth of our nation’s economy – every company today is, or needs to be, a tech company,” Shapiro added.
“Technology is embedded in so many industries, from sports and entertainment to healthcare and agriculture to building resilience in the face of natural disasters. And in the next five years, 5G adoption, artificial intelligence and quantum computing will provide an era of new technology – one that will raise demand for tech-related goods and services and offer new economic opportunities for Americans.”