A new TechNet study identifies a new "App Economy" based on the creation of mobile, enterprise, consumer and cloud apps that is responsible for roughly 466,000 jobs.
, a bipartisan policy and political
network of technology CEOs, released a new study showing that there are now
about 466,000 jobs in the so-called App Economy in the United States, up from
zero in 2007.
The App Economy is the
market for applications and technology products and services related to the
delivery of applications in the mobile, enterprise, Web and cloud spaces. The
TechNet study identifies the New York/Northern New Jersey/Long Island metro area
as having the highest number of App Economy jobs at 9.2 percent, while
California is by far the state with the highest amount of App Economy jobs at
23.8 percent. The next-closest state is New York, with 6.9 percent of the App
The total number of App
Economy jobs includes jobs at "pure" app firms such as Zynga as well
as app-related jobs at large companies such as Electronic Arts, Amazon and
AT&T, as well as app "infrastructure" jobs at core firms such as
Google, Apple and Facebook, TechNet said. In addition, the App Economy total
includes employment spillovers to the rest of the economy, the organization
The study, sponsored by
TechNet and conducted by Michael Mandel, president of South Mountain Economics,
also found that App Economy jobs are spread throughout the nation. Although the
New York metro area took top honors as the biggest market for App Economy jobs,
San Francisco and San Jose together substantially exceed New York, with 8.5
percent and 6.3 percent of the App Economy jobs, respectively. And while
California tops the list of App Economy states, with nearly one in four jobs, states
such as Georgia, Florida and Illinois get their share as well. In fact, more
than two-thirds of App Economy employment is outside California and New
York. The results also suggest that the App Economy is growing quickly and
that the location and number of app-related jobs are likely to shift greatly in
the years ahead.
Americas App Economywhich
had zero jobs just five years ago before the iPhone was introduceddemonstrates
that we can quickly create economic value and jobs through cutting-edge
innovation, said Rey Ramsey, president and CEO of TechNet, in a
statement. Today, the App Economy is creating jobs in every part of
America, employing hundreds of thousands of U.S. workers today and even more in
the years to come.
The App Economy, along with
the broad communications sector, has been a leading source of hiring strength
in an otherwise sluggish labor market, Mandel said in a statement.
development is the engine that drives a great deal of high-tech innovation and,
as the TechNet report demonstrates, significant economic growth, said Jake
Ward, head of communications for the Application
, a new trade organization for application developers.
The strength of the apps economy cannot be overstated, and its importance
should not be underestimated. App developers are small independent businesses
and global corporations and the nature of application development as a dynamic
industry bodes well for the future of the American technology industry. We are
proud to serve and represent the talented men and women that comprise this
The Application Developers
Alliance, which launched in January at the Consumer Electronics Show in Las
Vegas, is an association that supports the needs of developers by: promoting
innovation and growth through collaboration, networking and education;
delivering resources and support that enable developers to focus on their work;
celebrating developers contributionsin the media, within related industries
and wherever decisions are made that affect the development industry; and
advocating for public policies in developers best interests, including
openness, intellectual property rights, appropriate privacy protection, choice
and innovation, according to the alliances mission statement on its Website.
Meanwhile, the TechNet
research shows that when it comes to employment impacts, each app represents
jobsfor programmers, user interface designers, marketers, managers and support
staff. Conventional employment numbers from the Bureau of Labor Statistics are
not able to track such a phenomenon because this economic ecosystem is so new,
TechNet said. The research analyzed detailed information from The Conference
Board Help-Wanted OnLine (HWOL) database, an up-to-the-minute compilation of
want ads, to estimate the number of jobs in the App Economy.
Following New York, San
Francisco and San Jose, rounding out the top 10 metro areas with the highest
percentage of App Economy jobs was Seattle with 5.7 percent, Los Angeles with
5.1 percent, Washington, D.C., with 4.8 percent, Chicago and Boston both with
3.5 percent, Atlanta with 3.3 percent and Dallas with 2.6 percent.
After California and New
York, the states with the highest percentage of App Economy jobs were
Washington with 6.4 percent, Texas with 5.4 percent, New Jersey with 4.2
percent, Illinois with 4.0 percent, Massachusetts with 3.9 percent, Georgia
with 3.7 percent, Virginia with 3.5 percent and Florida with 3.1 percent.
Clip here for the full TechNet study
, entitled Where the Jobs
Although this study clearly
indicates that software development has generated a major economic boost and
bears out IBM Researchs chief scientist for software Grady Boochs claim that software
runs the world
, there is still a need for more trained IT workers to fill
the jobs created by the new App Economy.
Microsoft, IBM, Google and
other major technology companies are clamoring for workers, combing the halls
of the nations top computer science and engineering schools and asking for
relaxed immigration policies so they can hire more foreign workers.
IBM, Lenovo and other
companies have begun to tap
youngsters in high school
to groom them for IT jobs. IBMs joint effort
with the city of New York to create a high schoolPathways in Technology
Early College High School (P-TECH)
which goes from grades 9 through 14 and
graduates students with associate's degrees in IT fields, is a model Big Blue
hopes to replicate in Chicago and other cities. It also is an example of IBMs
principle of supporting public/private partnerships that Big Blue hopes other
companies will emulate.