Every job created in the US consumer technology sector supports almost three non-tech jobs throughout the rest of the American economy – an employment multiplier of 3.59 – according to findings from the Consumer Technology Association (CTA).
The report, U.S. Economic Contribution of the Consumer Technology Sector , says the consumer tech sector directly and indirectly supports 18.2 million American jobs, provides $1.3 trillion in annual wages, contributes $503 billion in annual taxes and adds $2.3 trillion to the nation’s economy – representing almost 12 per cent of US GDP. The consumer technology sector’s indirect economic impact accounts for companies buying goods and services from other US industries, which drives economic activity in those sectors and their supply chains.
“Even accounting for the booming growth the US economy enjoyed before 2016 – when we released our previous economic study – our industry is still delivering 19 per cent jobs impact growth and 22 per cent growth in overall economic impact since then,” said Gary Shapiro, president and CEO, CTA. “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.”
In 2017, consumer technology content and services, manufacturing and distribution directly and indirectly supported at least 100,000 jobs in 34 states and nine congressional districts. California alone had over three million jobs directly and indirectly attributable to consumer tech; and Texas, Florida and New York each had over one million jobs attributable to consumer tech, many of which derive from consumer tech exports. California, Oregon, Massachusetts, Colorado and Georgia have the largest shares of their economies supported by the consumer tech sector.
Other key findings from the report include:
“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,” said Shapiro. “Technology is embedded in so many industries, from sports and entertainment to health care 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.”