Decline in Employment of Information Sector Accompanied by Decline in Concentration of Workers

One of Colorado’s more intriguing components of the state economy is the Information sector.  It includes telecommunication, printed media, broadcasting, Internet service providers, and software publishers.  As such many companies in this sector are part of Colorado’s advanced technology cluster.

Over the past decade technological advances and the Internet caused a decline in jobs in the media, particularly the printed media. As well consolidation occurred in telecommunications, the most recent being the acquisition of Qwest by Centurylink.

After peaking at 108,400 workers in 2000, the sector has declined steadily. In 2012, it had fallen to 69,700, about the same level as in the mid-1990s.

Over this period, technological advances and consolidation caused the sector to decline across the U.S. Unfortunately, the location quotient, or the concentration of local Information workers relative to the U.S. has dropped off at a faster rate in Colorado than the U.S.

In August 2000, Colorado’s location quotient for Information peaked at 1.84. By the end of 2012 it had fallen to 1.48.

The good news is the state still has a high location quotient of workers and the sector remains a major contributor to the Colorado Gross Domestic Product.

For additional information about the performanc of the Colorado economy refer to “Colorado Employment Review – 2012 “.

©Copyright 2011 by CBER.

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