Update on tech sector growth

Here is a brief update on growth in the tech sector, which we profiled in a special report a year ago (Washington’s Prosperity Depends on Vibrant Tech Sector).

From 1990 to 2012, employment in the state grew by 725,500.  The tech sector directly accounted for 115,000 (16%) of these jobs. Another 336,500 (46%) of the added jobs were indirectly due to the growth of the sector. Only 38 % of the gain (274,000 jobs) was unrelated to the tech sector. In 2012 the sector provided 209,000 direct jobs and was indirectly responsible for 599,000 jobs.

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From 1994 to 2012, the state received $3.9 billion in B&O taxes directly from tech sector companies and $8.1 billion in B&O taxes from other companies on activities generated by the sector. Over the period, the state and its counties, cities and other local governments collected $25.2 billion in sales taxes on activity directly and indirectly due to the sector. In 2012 B&O and sales tax revenues totaled $3.06 billion.

Note: The definition used here for the tech sector includes pharmaceutical manufacturing.