Illinois keeps tech jobs, but growth has slowed

While Illinois has added jobs in the high-tech industry, that growth has slowed and the deepening recession likely will affect the industry even further, according to a report released Monday.

Cyberstates 2009, the annual report from TechAmerica (the new name after a January merger of AeA and the Information Technology Association of America) shows that Illinois added roughly 2,400 jobs, or 1.2 percent, in 2007 compared to 2006, the latest figures available. That places Illinois No. 7 nationwide among high-tech companies. The state added nearly 4,000 jobs from 2005 to 2006.

Nationwide, about 79,600 jobs were added in 2007 over 2006.

But don't expect much more for 2008 or 2009 as the recession continues and more layoffs are announced at major technology and communications companies, including Motorola Inc. and others, said local industry officials.

"We anticipate a slowdown in high-tech jobs," Marty Singer, a TechAmerica board member and chief executive officer of Bloomingdale-based PCTEL Inc. Marty Singer said about the industry report. "There's been a pretty dramatic slowdown in spending, especially in the cellular industry."

PCTEL makes antennae and serves the public safety and private businesses, which are also seeing smaller budgets, he said.

The economic downturn has hurt many companies here, particularly those with strong ties to the auto and financial industry. Yet many other companies are doing well, including Vernon Hills-based Zebra Technologies Corp., Lisle-based Univa UD, SPSS Inc., Chicago-based Telular Corp., and others, said Oakbrook Terrace-based TechAmerica Midwest Executive Director Ed Longanecker.

"A net positive increase in jobs for Illinois in 2008 is uncertain, and the net growth in jobs from previous years has slowed due to the economy and financial sector meltdown," said Longanecker.

While tech manufacturing and communication services are down, Illinois has seen growth in software and software services for four consecutive years, he said.

In 2007, tech manufacturing jobs declined to 41,600 jobs, while software and software services increased 5 percent to 58,900 jobs in Illinois.

"The diversity of our tech economy is what makes Illinois work, and we are continuing to see that diversification and evolution with growth in some key sectors," he said.

The report said Illinois ranks fourth nationwide for electronic components (12,300 total jobs) and communications equipment (8,700 total jobs). Illinois also has the fifth largest concentration of technology establishments in the country, and had a significant increase of those establishments from the previous year.

Also, the state is targeting federal stimulus work force funding on critical sectors including health care, manufacturing, transportation and logistics and information technology, Longanecker said.

For manufacturing, the state will invest around $2 million in training. One of the best ways to help manufacturing employers is help them invest in the skills of their workers, Longanecker said.

"By investing in incumbent worker training to help companies stay competitive and fill critical shortages in skilled positions, companies will have a better chance to weather the recession and come out stronger after the recovery," Longanecker said.