Colorado’s high-tech cluster played an essential part in the growth of the state economy for the past 20 years, particularly between 1994 and 2001. At its peak in 2001, it employed more than 216,000 workers, or 9.67% of total employment.
Today that number is roughly 175,000, the same that it was when the recession officially ended in mid-2009. High-tech employment accounts for 7.67% of total workers.
The cluster, as defined by Colorado’s Labor Market Information agency, actually continued to decline after the recession. It bottomed out in March of 2010 at 169,300 workers. Over the next 15 months more than 6,000 jobs were added and 176,000 high-tech workers were employed in July 2012. Cluster employment has been relatively flat since then.
Colorado’s telecommunications sector continues to experience declines resulting from consolidations. As well, it has recently been announced that Abound Solar is going into bankruptcy, the addition of a proposed General Electric facility will be delayed and another GE facility will reduce its workforce. In addition the Aerospace and Clean Energy Park in Northern Colorado was scrapped. Unfortunately, the volatility associated with the fledgling renewable energy cluster comes as no surprise. Proposed defense cuts could play havoc with the state aerospace industry.
Current projections for Real GDP growth are less than 2.0% for the next year. Continued lackluster job growth in the high-tech sector is likely.
©Copyright 2011 by CBER.