Economy: Tennessee tech sector flashing mixed signals

Report says state lost tech jobs, while other data show Nashville gaining momentum and facing talent shortage

Email | Print By Milt Capps

Jeff Costantine

According to an American Electronics Association report, Tennessee's high-tech industry jobs pay 60 percent more on average than by the state's average private-sector job, but the state is still 37th in compensation for high-tech workers.

Tennessee lost 12 percent of its high-tech job base during the 2000-2005 period, or about 8,500 jobs, according to the "Cyberstates 2007" report.

During the same period, top-ranked California lost more than 200,000 tech jobs, but it retained the top spot with 919,322 jobs and an average tech wage of more than $95,000.

The AEA analysis says Tennessee's high-tech sector now employs 61,476 workers, with average annual pay of $57,311, in contrast to statewide average pay of $35,837 per year.

Jeff Costantine, president of the Nashville Technology Council, told NashvillePost.com this morning that, despite Tennessee's modest showing in the AEA rankings, data he has obtained from other sources indicates Middle Tennessee technology employment is outpacing the national growth rate at 6.1 versus 4.1 percent.

Costantine is among tech executives who have cited Middle Tennessee's relatively shallow talent pool as a constraint to long-term growth in the tech sector. The AEA report also listed availability of highly qualified workers and long-term investment in research and development as key concerns for the longer term.