new jersey’s technology industry cluster5182 data processing and related services 5191 other...

New Jersey’sTECHNOLOGY Industry Cluster

Prepared by:

New Jersey Department of Labor & Workforce Development

Office of Research & Information

Bureau of Labor Market Information

Fall 2018

THE GOAL OF THIS REPORT IS TO GET AN “IDEA” OF WHAT TECHNOLOGY MEANS TO NEW JERSEY

Identify the types of industries and establishments that make up the technology

industry cluster based on a standard industry classification system

Describe any similarities and differences among its components with regard to

such variables as employment, wage, occupation type, education, and demographic

characteristics

Examine any present distinctions within the cluster and its components that give

New Jersey a competitive advantage compared to neighboring states, regions or the

nation, or show areas where New Jersey could improve to add to the state’s economy

Analyze the current state of the technology industry cluster and provide an

outlook for employment into the future

TECHNOLOGY INDUSTRY CLUSTER:OVERVIEW

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERNORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS)

4234 Commercial equip. merchant wholesalers

4236 Electric goods merchant wholesalers

4242 Druggists' goods merchant wholesalers

4240A2 (Represents 4242 – combined with 4246)

4861 Pipeline transportation of crude oil (NA, QCEW)

5112 Software publishers

5171 Wired telecommunications carriers

5172 Wireless telecommunications carriers

5173 (Represents 5171 and 5172)

5174 Satellite telecommunications

5179 Other telecommunications

5170 (Represents ALL 5173, 5174, 5179)

5182 Data processing and related services

5191 Other information services

5211 Monetary authorities - central bank

5413 Architectural and engineering services

5415 Computer systems design and related services

5416 Management and technical consulting services

5417 Scientific research and development services

NAICS and Industry Description

2111 Oil and gas extraction

2211 Power generation and supply

3241 Petroleum and coal products manufacturing

3251 Basic chemical manufacturing

3252 Resin, rubber, and artificial fibers mfg.

3250A1 (Represents 3251 and 3252 - combined w/ 3253, 3259)

3254 Pharmaceutical and medicine manufacturing

3332 Industrial machinery manufacturing

3330A1 (Represents 3332 – combined w/ 3331, 3334, 3339)

3333 Commercial and service industry machinery

3336 Turbine and power transmission equipment mfg.

3341 Computer and peripheral equipment mfg.

3342 Communications equipment manufacturing

3343 Audio and video equipment manufacturing

3344 Semiconductor and electronic component mfg.

3345 Electronic instrument manufacturing

3346 Magnetic media manufacturing and reproducing

3353 Electrical equipment manufacturing

3354 Aerospace product and parts manufacturing

The technology cluster was expanded to reflect the new U.S. Bureau of Labor Statistics definition of technology industries (2013). BLS

designated NAICS industries as technology based on concentration levels of Science, Technology, Engineering & Math (STEM)

occupations within the industries.

Please note that some previous NAICS codes now have combined data and can include additional codes that were not originally part of

the industry cluster. There may be a slight data change starting with the Summer 2018 report. 2018 changes are noted in red.

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTEREMPLOYMENT OVERVIEW

• In 2017, New Jersey’s technology cluster accounted for 361,077 jobs or 10.5 percent of all private

sector employment statewide. Nationally the

cluster was responsible for 9.5 percent of all

private sector employment.

• Annual average wage for the technology cluster was

$119,230 in 2017 or 187 percent of the statewide

average ($63,740) for all industries. Employers in

the industry paid over $43 billion in wages, or 19.7

percent of the total wages paid in all industries.

• Employment within the technology cluster can

primarily be found within: professional, scientific and

technical services (50.8%), manufacturing (17.6%),

wholesale trade (16.1%), and information (13.4%).

• From 2007 to 2017 employment in the cluster

peaked in 2007 at 392,970 jobs.

Source: NJ Department of Labor & Workforce

Development, Quarterly Census of Employment

and Wages: October, 2018

TECHNOLOGY INDUSTRY CLUSTER:

EMPLOYMENT ANALYSIS

Gray area denotes U.S. economic recession as defined

by the National Bureau of Economic Research (NBER)

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERALL PRIVATE SECTOR VS. TECHNOLOGY EMPLOYMENT, 2007-2017

90%

95%

100%

105%

110%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Em

plo

ym

en

t In

de

x Ye

ar

20

07

= 1

00

%

Technology Total NJ Private Employment




• After experiencing a 4.2 percent

growth from 2006 to 2008, the

technology industry declined

sharply from 2007 to 2010

(-10.7%) before leveling out

from 2010 to 2013 (+0.1%).

The technology industry

experienced overall growth from

2010 to 2017 (+1.9%), and is

currently below the industry

peak of 2007 by -8.1 percent.

• NJ private sector employment

has experienced more growth

than the technology industry

since 2010 (+9.6% vs. 1.9%).

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTER10-YEAR TECHNOLOGY CLUSTER EMPLOYMENT TREND, 2007-2017




392,970

385,860

361,080354,440

354,130 353,360354,640

359,700362,730

366,330

361,080

340,000

350,000

360,000

370,000

380,000

390,000

400,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Em

plo

ym

en

t

Gray area denotes U.S. economic recession as defined

by the National Bureau of Economic Research (NBER)

After experiencing a

significant decline from

its peak in 2007, the

technology industry has

been trending upward

since 2012 until 2017.

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERPERCENT EMPLOYMENT BY COMPONENT SECTOR, 2017

Manufacturing

18%

Information

13%

Utilities

2%

Wholesale

16%

Professional

51%

2017 Employment




• Professional,

scientific, and

technical services

accounted for more

than half of the NJ

technology cluster

with 183,560

employment in 2017.

• Computer systems

design and related

services represented

the most of this

subsector with near

70,022 employment.




NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERCOMPONENT SECTORS, 2017 ANNUAL AVERAGES

• Nearly ¾ of all

business

establishments in the

technology cluster

were in the

professional,

scientific and

technical services

sector in 2017.

• The average wage for

the utilities

subsector was more

than double the NJ

total private sector

average wage.

Description UnitsAverage

Employment

Wages

Average Total

All Private Sector Industries 259,890 3,434,200 $63,740 $218,887,956,250

Technology Industry Cluster 26,810 361,080 $119,230 $43,051,275,160

Manufacturing 1,550 63,430 $112,520 $7,137,185,870

Wholesale Trade 3,170 58,200 $114,490 $6,663,442,370

Information 2,450 48,520 $122,390 $5,938,329,560

Professional, Scientific, and

Technical Services19,450 183,560 $121,720 $22,342,522,360

Other 190 7,360 $131,730 $969,795,000

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERTOP COMPONENT INDUSTRIES RANKED BY EMPLOYMENT, 2017

12,170

14,050

15,920

22,280

23,360

28,220

28,230

38,910

46,410

70,020

0 30,000 60,000 90,000

Electromedical Instruments Manufacturing

Druggists' Sundries Merchant Wholesalers

Electrical Goods Merchant Wholesalers

Pharmaceutical and medicine manufacturing

Wired telecommunications carriers

Scientific research and development services

Commercial Equipment and Supplies

Architectural, Engineering, and Related Services

Management and Technical Consulting Services

Computer systems design and related services

2017 Employment

Within the

technology

cluster, near 83

percent of

employment was

found in only ten

industries in 2017.




NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERTOP COMPONENT INDUSTRIES RANKED BY ESTABLISHMENTS, 2017

521

583

616

621

692

934

1,614

3,413

6,589

8,760

0 2,000 4,000 6,000 8,000 10,000

Software publishers

Data Processing, Hosting, and Related Services

Wired telecommunications carriers

Druggists' Sundries Merchant Wholesalers

Scientific research and development services

Electrical Goods Merchant Wholesalers

Commercial Equipment and Supplies

Architectural, Engineering, and Related Services

Management and Technical Consulting Services

Computer systems design and related services

2017 Establishments




Computer systems

design and related

services,

Management and

technical consulting

services, and

architectural and

engineering services

accounted for near

70 percent of all

establishments in

the technology

industry cluster in

2017.

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERTOP COMPONENT INDUSTRIES RANKED BY AVERAGE WAGE, 2017

$206,000

$145,980 $140,960$133,330 $131,420 $124,550

$0

$50,000

$100,000

$150,000

$200,000

$250,000

Scientific Research

& Development

Services

Druggists' Sundries

Merchant

Wholesalers

Pharmaceutical &

Medicine Mfg.

Software

Publishers

Power Generation

& Supply

Data Processing &

Related Services

2017 Average Wage




The scientific

research and

development

services

industry has

the 5th

highest 2017

annual

average wage

across all

industries in

New Jersey.

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTEREMPLOYMENT SIZE, GROWTH, SALARY & LOCATION QUOTIENT

Professional &

Business Services

Manufacturing

Wholesale Trade

Information-20,000

-10,000

0

10,000

20,000

30,000

40,000

50,000

$110,000 $112,000 $114,000 $116,000 $118,000 $120,000 $122,000 $124,000 $126,000

Em

plo

ym

en

t G

row

th 2

01

2 -

20

17

Annual Average Wage 2017




The above bubble graph has four elements:

1. Total 2017 employment - represented by the size of the bubble.

2. 2012-2017 employment growth- shown on the Y-axis, or vertical position.

3. 2017 annual average wages - shown on the X-axis, or horizontal position.

4. Location quotient - indicated by the color of the bubble. The location quotient compares the concentration of the industry subsectors

in the state to those of the nation. Industries with a location quotient above 1 are known as “basic industries” which (in theory) export

a good or service from the state and in return, bring in wealth.

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERALL PRIVATE SECTOR VS. TECHNOLOGY ANNUAL AVERAGE WAGE

$1

08

,25

0

$1

10

,95

0

$1

14

,53

0

$1

18

,43

0

$1

18

,21

0

$1

19

,23

0

$5

8,0

90

$5

9,0

30

$6

0,1

50

$6

1,9

80

$6

2,4

20

$6

3,7

40

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

2012 2013 2014 2015 2016 2017

Technology Cluster All Industries

• Wages in the

technology cluster

have averaged

188% of the

statewide annual

average wage since

2012.

• Annual average

wages for the

technology cluster

have risen +10.1%

over the five year

period from 2012

to 2017.




Employment in

computer

systems design

and related

services

accounted for

19.4 percent of

total

technology

cluster

employment

and 32.7

percent of its

establishments.




NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERPROFESSIONAL, SCIENTIFIC & TECHNICAL SERVICES, 2017

NAICS and Industry Description UnitsAverage

Employment

Wages

Average Total

Technology Industry Cluster 26,810 361,080 $119,230* $43,051,275,200

Professional, Scientific, and Technical

Services Sector19,450 183,560 $121,720* $22,342,522,360

Computer systems design & related

services8,760 70,020 $114,180 $7,994,919,500

Management & technical consulting

services6,590 46,410 $103,170 $4,787,916,200

Architectural & engineering services 3,410 38,910 $96,300 $3,747,224,350

Scientific research & development services 690 28,220 $206,000 $5,812,462,310

*Weighted Salary

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTER

Pharmaceutical

and medicine

manufacturing

led the

manufacturing

component in

share of

employment

(35.1%) and

total wages

(44%) in 2017.

MANUFACTURING SECTOR, 2017




Subsector industry numbers may not reflect the total industry sector data because of non-disclosure guidelines.


Employment

Wages

Average Total


Manufacturing Sector 1,550 63,430 $112,520* $7,137,185,870

Pharmaceutical & Medicine 300 22,280 $140,960 $3,140,359,000

Electronic Instrument 290 12,170 $102,000 $1,240,784,330

Semiconductor & Electronic Component 200 7,510 $79,180 $594,330,410

Basic Chemical 110 5,850 $117,950 $689,637,090

Petroleum & Coal Products 70 2,940 $122,040 $359,255,610

Industrial Machinery 130 2,560 $74,740 $191,022,220

Communications Equipment 100 2,430 $118,200 $287,711,100

Electrical Equipment 70 1,720 $80,840 $138,833,870

Commercial & Service Industry Machinery 70 1,420 $78,670 $111,797,070

Aerospace Product & Parts 20 1,420 $75,590 $107,172,650

Engine, Turbine, and Power Transmission Equipment 30 1,070 $80,530 $86,382,640

Resin, Synthetic Rubber, and Artificial Synthetic 50 990 $93,050 $91,661,630

Computer & Peripheral Equipment 50 500 $119,070 $59,428,010

*Weighted Salary


Average

wages paid

for the

information

sector were

nearly equal

to the

technology

industry

cluster

average in

2017

($119,230 vs.

$122,390).




INFORMATION SECTOR, 2017

Due to disclosure guidelines, some industries were not included.


Employment

Wages

Average Total


Information Sector 2,450 48,520 $122,390* $5,938,329,560

Wired Telecommunications Carriers 620 23,360 $120,770 $2,821,063,500

Data Processing And Related Services 580 9,780 $124,550 $1,218,483,890

Software Publishers 520 6,390 $133,330 $851,473,690

Other Information Services 390 6,040 $123,420 $745,256,250

*Weighted Salary


REGIONAL AND COUNTY

EMPLOYMENT ANALYSIS


54,280

36,940 36,320 35,380

25,010

21,760 21,56018,960

18,810

15,490

10,090 9,950

6,470 5,5804,130 3,500 2,950

1,960 1,830 1,020 730

0

10,000

20,000

30,000

40,000

50,000

60,000

In 2017, Middlesex County

had the most technology

industry jobs among all New

Jersey counties.

TECHNOLOGY EMPLOYMENT BY COUNTY, 2017 ANNUAL AVERAGES




NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERNORTHERN REGION, 2017 ANNUAL AVERAGES




Area EstablishmentsWages

Average Total

Total NJ Technology 26,810 $119,230 $43,051,275,200

Northern Region 11,020 $104,240 $23,435,988,930

Bergen 2,900 $100,290 $4,039,370,330

Morris 1,970 $111,080 $5,034,678,960

Somerset 1,440 $115,280 $4,774,859,270

Essex 1,260 $93,380 $1,922,678,070

Hudson 1,040 $98,610 $1,833,161,880

Union 930 $108,880 $4,036,648,420

Passaic 690 $86,540 $971,899,110

Hunterdon 390 $97,450 $496,116,780

Sussex 240 $76,280 $160,975,950

Warren 170 $76,420 $165,600,170

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERCENTRAL REGION, 2017 ANNUAL AVERAGES





Average Total


Central Region 7,264 $125,518 $12,087,629,857

Middlesex 3,270 $104,040 $5,967,767,440

Monmouth 1,800 $93,090 $2,316,622,520

Mercer 1,560 $213,430 $3,304,062,210

Ocean 640 $73,990 $499,177,690

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERSOUTHERN REGION, 2017 ANNUAL AVERAGES





Average Total


Southern Region 2,710 $81,720 $3,782,188,870

Burlington 1,000 $78,520 $1,735,538,220

Camden 750 $78,030 $831,960,760

Gloucester 390 $111,200 $439,453,440

Atlantic 300 $74,000 $315,787,720

Cape May 110 $67,110 $53,110,790

Cumberland 100 $63,070 $67,845,980

Salem 70 $78,340 $338,491,980


OCCUPATIONAL ANALYSIS

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERTOP OCCUPATIONAL GROUPS, 2017

Science,

Technology,

Engineering and

Mathematical

(STEM)

occupations

accounted for

more than 1/3

of the

technology

cluster

occupational

employment in

2017 with

124,220

employment.


Development, Occupational Employment

Statistics Survey: October, 2018

Occupational Title2017

Employment

Percent of

Total

Employment

2017 Average

Salary

All Technology Occupations 361,020 100% $81,230

Computer and Mathematical Occupations 73,870 20.5% $96,840

Management Occupations 45,810 12.7% $167,240

Office and Administrative Support Occupations 45,530 12.6% $47,900

Business and Financial Operations Occupations 41,090 11.4% $86,820

Production Occupations 31,740 8.8% $46,340

Architecture and Engineering Occupations 29,980 8.3% $92,720

Sales and Related Occupations 28,450 7.9% $28,450

Life, Physical, and Social Science Occupations 20,370 5.6% $20,370

Installation, Maintenance, and Repair Occupations 15,900 4.4% $15,900

Science, Technology, Engineering, and

Mathematical (STEM) Occupations 124,220 34.4% $96,520

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERINDUSTRY CLUSTER TOP 20 OCCUPATIONS BY EMPLOYMENT, 2017




New Jersey Technology Cluster's Top 20 Occupations

NAICS and Occupational Title2017

Employment Education

15-1132 Software Developers, Applications 27,840 Bachelor's degree

41-4012 Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products 10,580 High school diploma or equivalent

11-1021 General and Operations Managers 10,450 Bachelor's degree

43-4051 Customer Service Representatives 9,200 High school diploma or equivalent

15-1131 Computer Programmers 7,160 Bachelor's degree

11-3021 Computer and Information Systems Managers 6,910 Bachelor's degree

13-1161 Market Research Analysts and Marketing Specialists 5,930 Bachelor's degree

19-2031 Chemists 5,630 Bachelor's degree

15-1151 Computer User Support Specialists 5,490 Some college, no degree

15-1133 Software Developers, Systems Software 5,470 Bachelor's degree

13-1111 Management Analysts 5,450 Bachelor's degree

43-6014 Secretaries and Administrative Assistants, Except Legal, Medical, 5,390 High school diploma or equivalent

15-1142 Network and Computer Systems Administrators 5,070 Bachelor's degree

43-9061 Office Clerks, General 4,960 High school diploma or equivalent

13-2011 Accountants and Auditors 4,840 Bachelor's degree

17-2051 Civil Engineers 4,810 Bachelor's degree

19-1021 Biochemists and Biophysicists 4,780 Doctoral or professional degree

53-7062 Laborers and Freight, Stock, and Material Movers, Hand 4,320 No formal educational credential

51-9061 Inspectors, Testers, Sorters, Samplers, and Weighers 4,310 High school diploma or equivalent

43-3031 Bookkeeping, Accounting, and Auditing Clerks 4,140 Some college, no degree

* Employment data only includes NAICS technology cluster codes.

- 5,000 10,000 15,000 20,000 25,000 30,000

Software Developers, Systems Software

Computer User Support Specialists

Chemists

Market Research Analysts and Marketing Specialists

Computer and Information Systems Managers

Computer Programmers

Customer Service Representatives

General and Operations Managers

Sales Representatives, Wholesale and Manufacturing, Except

Technical and Scientific Products

Software Developers, Applications

5,470

5,490

5,630

5,930

6,910

7,160

9,200

10,450

10,580

27,840

2017 Employment

= STEM Occupations

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERTOP TEN TECHNOLOGY OCCUPATIONS, 2017

• Eight of the top twenty

occupations are science,

technology, engineering

and math occupations

(STEM) and make-up

18.3 percent of total

cluster occupational

employment.

• The top twenty

technology cluster

occupations accounted

for 42.6 percent of

total technology cluster

occupational

employment in 2017.




ALL NEW JERSEY STEM OCCUPATIONS BY LABOR AREA




Labor AreaSTEM

Employment

Newark Labor Area 74,700

Middlesex-Monmouth-Ocean County Area 51,170

Bergen-Hudson-Passic County Area 45,180

Trenton Labor Area 21,970

Camden Labor Area 21,530

Atlantic City-Hammonton Labor Area 3,540

Salem County Area 1,080

Warren County Area 990

Vineland-Bridgeton Labor Area 800

Ocean City Labor Area 480


3,240

4,070

4,780

4,810

5,070

5,470

5,490

5,630

7,160

27,840

0 10,000 20,000 30,000

Chemical Technicians

Computer Systems Analysts

Biochemists and Biophysicists

Civil Engineers

Network and Computer Systems

Administrators



Chemists



2017 Employment

• Four of the top five

STEM occupations

are related to

computer and

mathematical

occupations.

• Applications

software

developers

accounted for 7.7

percent of

employment in the

technology industry

cluster in 2017.

LARGEST STEM OCCUPATIONS BY EMPLOYMENT, 2017





$57,010

$68,820

$90,380

$95,260

$102,070

$102,340

$103,590

$106,770

$114,400

$116,200

$0 $40,000 $80,000 $120,000

Chemical Technicians


Chemists

Network and Computer Systems

Administrators


Civil Engineers





2017 Annual Average Salary

• The highest annual

average salary for

STEM occupations in

2017 was Petroleum

Engineers, but had less

than 200 employed

($189,580).

• The top twenty STEM

occupations by

employment all had

an occupational annual

average wage that

was above the state

average ($56,980).

ANNUAL AVERAGE SALARY FOR LARGEST STEM OCCUPATIONS, 2017





SUB-SECTOR ANALYSIS

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERCOMPUTER SYSTEMS DESIGN AND RELATED SERVICES, 2017

• Provide expertise in the field of information

technologies, including software development,

planning and development of computer systems

and managing onsite computer systems for

clients.

• Accounted for nearly one-third of all technology

industry cluster establishments in NJ (8,760 ) in

2017.

• From 2012 to 2017, employment has grown 6.3

percent to 70,020 in 2017.

• Near $8 billion dollars were paid in total wages,

making up over eighteen percent of total

technology industry cluster wages paid in 2017.





• The top ten

occupations in the

computer systems

design & related

services industry

make up 66.1

percent of the

employment.

• The average salary

in Computer

Systems Design and

Related Services

($101,380) is 124.8

percent of the

technology cluster

average.

20

,72

0

5,9

80

3,4

50

2,3

70

2,3

20

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Software

Developers,

Applications

Computer

Programmers

Computer and

Information

Systems

Managers

Computer User

Support

Specialists

Software

Developers,

Systems Software

20

17

Av

era

ge

Sa

lary2

01

7 E

mp

loy

me

nt

Employment Average Salary

COMPUTER SYSTEMS DESIGN AND RELATED SERVICES




NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERARCHITECTURAL AND ENGINEERING SERVICES, 2017




• Architectural and Engineering Services industry is

distributed fairly evenly from Camden and

Burlington counties in the southern part of the

state through the central counties up through the

northeast.

• Accounted for 10.8 percent of all technology

industry cluster employment in NJ (38,910)

in 2017.

• There are 3,410 establishments throughout NJ,

with the most in Bergen County (380).

• Over $3.7 billion dollars paid in total wages,

making up near nine percent of total technology

industry cluster wages paid in 2017.

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERARCHITECTURAL, ENGINEERING & RELATED SERVICES

4,5

70

2,2

60

1,8

80

1,8

20

1,3

20

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Civil Engineers Architectural and

Civil Drafters

Secretaries and

Administrative

Assistants

Architects Architectural and

Engineering

Managers

20

17

Av

era

ge

Sa

lary2

01

7 E

mp

loy

me

nt

Employment Average Salary• Civil Engineers

accounted for 11.9

percent of

employment in

the architectural,

engineering and

related services

industry.

• The average salary

for architectural,

engineering, and

related services

($82,340) is higher

than the total

technology

industry average.




NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERMANAGEMENT AND TECHNICAL CONSULTING SERVICES, 2017




• Management and technical consulting services

employment (46,410) made up 12.9 percent of

the technology industry cluster.

• The average wage for this industry is much lower

than the technology industry cluster average

($103,170 vs. $119,230).

• Establishments for this cluster accounted for

nearly one quarter of total technology industry

cluster establishments throughout NJ (6,590).

• More than $4.7 billion dollars paid in total wages,

making up more than 11.1 percent of all wages

paid for the technology industry cluster in 2017.

Undisclosable Data

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERMANAGEMENT, SCIENTIFIC & TECHNICAL CONSULTING SERVICES

• Accounts for 12.7

percent of the

technology

industry cluster

employment.

• Average salary for

the management,

scientific, and

technical

consulting services

industry ($88,660)

is higher than the

technology

industry cluster

average.

3,3

30

3,0

30

2,0

40

1,8

00

1,6

00

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Management

Analysts

General and

Operations

Managers

Market Research

Analysts and

Marketing

Specialists

Customer Service

Representatives

Software

Developers,

Applications

20

17

Av

era

ge

Sa

lary2

01

7 E

mp

loy

me

nt

Employment Average Salary




NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERMANUFACTURING, 2017




• The state’s high technology manufacturing sector is led by the pharmaceutical and

medicine manufacturing, and medical device

manufacturing industries.

• Average wage is lower than the total

technology industry cluster average

($112,520 vs. $119,230).

• Manufacturing accounted for 17.6 percent

of all technology industry cluster

employment (63,430).

• More than $7.1 billion dollars paid in total

wages, making up 16.6 percent of all wages

paid for the technology industry cluster in 2017.

Undisclosable Data

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERPHARMACEUTICAL & MEDICINE MANUFACTURING, 2017

3,1

30

2,3

90

1,2

20

1,0

90

96

0

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Chemists Packaging and

Filling Machine

Operators and

Tenders

Chemical

Equipment

Operators and

Tenders

Inspectors,

Testers, Sorters,

Samplers, and

Weighers

Mixing and

Blending

Machine Setters,

Operators, and

Tenders

Employment Average Salary • Pharmaceutical

manufacturing

industry

accounted for 6.4

percent of the

technology

industry cluster

employment.

• Pharmaceutical

manufacturing

industry average

salary ($77,720)

falls below the

technology

industry cluster

average.




20

17

Em

plo

ym

en

t

20

17

Av

era

ge

Sa

lary


2016 DEMOGRAPHIC OVERVIEW

• Technology workers’ age characteristics have remained relatively steady since

2014. The numbers of workers age 44 and

under has remained nearly equal to the

number of workers age 45 and over.

• The largest disparity among age cohorts

occurs in the youngest group, where only

4.9 percent of the technology workforce is

25 years old or younger, but has not

increased/decreased since 2015.

• 5.6 percent of the current NJ resident

technology workforce is aged 65 and older,

increasing 0.6 percent from 2015.

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERNJ RESIDENTS IN TECHNOLOGY WORK FORCE VS. ALL INDUSTRIES

-30

.0%

-20

.0%

-10

.0%

0.0

%

10

.0%

20

.0%

30

.0%

65 & over

55-64

45-54

35-44

25-34

Less than 25

Age Breakdown of Workers in Technology

and All Industries

New Jersey, 2016

Technology All Industries

Source: New Jersey Department of Labor

and Workforce Development

2016 U.S. Census Bureau, American Community

Survey, 5-Year Estimates: October, 2018

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERNJ RESIDENTS IN TECHNOLOGY WORK FORCE VS. TOTAL NONFARM

Male

53%

Female

47%

All Industries

White

67.7%

Black

7.1%

Asian

20.3%

Other

4.8%

Technology

White

69%

Black

13%

Asian

10%

Other

8%

All Industries

Non-

Hispanic

90%

Hispanic

10%

Technology

Non-

Hispanic

80%

Hispanic

20%

All Industries

Men continue to outnumber women by nearly a

2 to 1 margin in the technology workforce.Male

66%

Female

34%

Technology

NJ residents who are Asian (20.3%) hold the 2nd

highest percentile in the technology industry.




Survey, 5-Year Estimates: October, 2018

There are more than 53,000 Hispanics in

the Technology industry cluster.

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERNJ RESIDENTS IN TECHNOLOGY WORK FORCE

14.0%

18.8%

39.8%

24.1%

3.3%

0.0% 20.0% 40.0%

High School or less

Some college/Associate

degree

Bachelor's degree

Master's/Professional

degree

Doctoral degree

Education Level

12.5%

16.0%

17.3%

37.2%

17.0%

0.0% 20.0% 40.0%

Less than $25,000

$25,000-$50,000

$50,000-$75,000

$75,000-$150,000

$150,000 & more

Personal Earnings




Survey, 5-Year Estimates – January, 2018

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERNJ RESIDENTS IN STEM JOBS



2016 American Community Survey

public-use micro data: October, 2018

• The highest

percentage of

women is found

in physical and

life science

occupations for

NJ residents

(48.7%).

• 77.2 percent of

NJ residents that

are managers for

STEM

occupations are

male.

Occupation Total EmploymentMale Female

Number Percent Number Percent

STEM total 327,100 245,100 74.9% 82,100 25.1%

Computer Science & Math 180,800 135,300 74.8% 45,500 25.2%

Engineering & Surveying 65,000 58,000 89.2% 7,000 10.8%

Physical & Life Science 42,700 21,900 51.3% 20,800 48.7%

STEM Managers 38,600 29,800 77.2% 8,800 22.8%

Note: Estimates are for employed persons 16 and over.

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERNJ RESIDENTS IN STEM JOBS





The STEM

workforce is

predominantly

male. Resident

women hold

slightly over

twenty-five

percent of

science,

technology,

engineering &

math jobs in New

Jersey.0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Non-STEM STEM

51.0%

74.9%

49.0%

25.1%

Gender Shares of Non-STEM and STEM Jobs, 2016

Male Female


NEW JERSEY TECHNOLOGY INDUSTRY CLUSTEREDUCATION CHARACTERISTICS FOR NJ RESIDENTS IN STEM JOBS

High School or

less

6.4%

Some college/

Associates

degree

16.4%

Bachelor's

degree

42.2%

Master's/

Professional

degree

29.6%

Doctoral degree

5.3%

Educational Breakdown • The STEM workforce

requires well-educated and

highly skilled workers to

meet the high technical

demands of many of the

occupations.

• More than seventy-five

percent of NJ residents in

the STEM workforce hold

at least a Bachelor’s degree compared to only 38.7%

percent of NJ residents in

non-stem occupations.







OCCUPATIONAL PROJECTIONS AND

OUTLOOK

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERNJ DETAILED OCCUPATIONAL EMPLOYMENT PROJECTIONS 2016-2026

• Nearly 20,000

average annual

job openings are

projected from

2016-2026.

• STEM occupations

are projected to

experience a 9.8

percent

employment

growth by 2026.

Source: New Jersey Department of Labor and Workforce

Development, 2016–2026 Industry and Occupational

Employment Projections. Note: Total job openings may

not add up exact due to rounding: October, 2018

Occupational Title

EmploymentAverage Annual

Job OpeningsActual Projected Change 2016-2026

2016 2026 Number Percent Total

Total, All Occupations 4,318,450 4,671,200 352,750 8.17 521,020

Non-STEM Occupations 4,077,450 4,406,700 329,250 8.1 501,170

STEM Occupations 241,000 264,500 23,500 9.8 19,850

Computer and

Mathematical Occupations147,000 161,500 14,500 9.9 11,380

Architecture and

Engineering Occupations54,150 59,700 5,550 10.3 4,530

Life, Physical, and Social

Science Occupations39,850 43,300 3,450 8.7 3,940

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERPROJECTED ANNUAL AVERAGE OPENINGS FOR STEM OCCUPATIONS

540

560

680

680

750

750

940

1,200

4,200

- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500



Systems Software Software Developers

Civil Engineers

Network and Computer Systems Administrators

Chemists



Applications Software Developers

2016-2026 Top Projected Annual Average Job Openings

Source: New Jersey Department of Labor and Workforce

Development, 2016–2026 Industry and Occupational

Employment Projections. Note: Total job openings may

not add up exact due to rounding: October, 2018

Application software

developers are projected

to account for 21.1

percent of the average

annual job openings for

NJ STEM occupations

from 2016 to 2026.

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERCOPYRIGHT STATEMENT

THIS WORKFORCE PRODUCT WAS FUNDED BY A GRANT AWARDED BY

THE U.S. DEPARTMENT OF LABOR’S EMPLOYMENT AND TRAINING ADMINISTRATION. THE PRODUCT WAS CREATED BY THE RECIPIENT AND

DOES NOT NECESSARILY REFLECT THE OFFICIAL POSITION OF THE U.S.

DEPARTMENT OF LABOR. THE DEPARTMENT OF LABOR MAKES NO

GUARANTEES, WARRANTIES, OR ASSURANCES OF ANY KIND, EXPRESS OR

IMPLIED, WITH RESPECT TO SUCH INFORMATION, INCLUDING ANY

INFORMATION ON LINKED SITES AND INCLUDING, BUT NOT LIMITED TO,

ACCURACY OF THE INFORMATION OR ITS COMPLETENESS, TIMELINESS,

USEFULNESS, ADEQUACY, CONTINUED AVAILABILITY, OR OWNERSHIP.

THIS PRODUCT IS COPYRIGHTED BY THE INSTITUTION THAT CREATED IT.

INTERNAL USE BY AN ORGANIZATION AND/OR PERSONAL USE BY AN

INDIVIDUAL FOR NON-COMMERCIAL PURPOSES IS PERMISSIBLE. ALL

OTHER USES REQUIRE THE PRIOR AUTHORIZATION OF THE COPYRIGHT

OWNER.

NEW JERSEY TECHNOLOGY INDUSTRY CLUSTERCONTACT INFORMATION

New Jersey Department of Labor & Workforce

Development

http://lwd.dol.state.nj.us/

P.O. Box 057

Trenton, NJ 08625-0057

Office of Research and Information

http://lwd.dol.state.nj.us/labor/lpa/LMI_index.html

Michelle Kolpak– Labor Market Analyst

Tel: (609)633-1423

Email: [email protected]

http://lwd.dol.state.nj.us/

http://lwd.dol.state.nj.us/labor/lpa/LMI_index.html

mailto:[email protected]

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