Did Techlandia Experience the Recession?
Friday, April 20th 2012 by Jared Wiener
The recent recession – often referred to as the Global Recession, the Great Recession, the Little Depression, The Great Reset, the Bush Recession or the Obama Recession depending on whom you ask, has had a profound effect on our economy. Many businesses went under; workers lost jobs; investment accounts suffered, forcing delays in retirement plans; and the value of many homes decreased to "underwater” levels. So how did the technology industry or Oregon and Greater Portland fare during this difficult time? The short answer is better than most. While the negative effects of the recession are still being felt, the downturn ushered in a new wave of entrepreneurship and creativity as old economic models broke down. Elemental Technologies, Puppet Labs, Urban Airship, Thetus Corporation, Simple and many others have been able to hire workers, develop a profitable business plan and raise capital. In fact, companies in the Techlandia community raised more than $100 million in funding in 2011 alone! The software/tech industry’s ability to minimize the impacts of the largest economic loss in recent history is a testament to its strength in the region.The performance of Techlandia companies relative to the U.S. – and the change over time – is particularly informative. Software employment in the region increased by more than 1,300 jobs since the start of the recession in 2007. The computer and electronics industry across Oregon did experience employment reductions, but has lost only six percent of its employment levels since 2007 compared to the national loss of 13%.
And while the job numbers present a mixed picture, wages have continued their upward climb or held constant. In fact, wages increased by an equal or greater percentage across Oregon compared to the US in all but one of Techlandia’s industry sectors (BLS, 2007-2010 annual wage data, U.S. Totals and State of Oregon Total).Wages and employment strength in Techlandia industries are strong compared to national averages and other industries in Portland and Oregon. This is particularly valuable since a larger portion of Portland and Oregon workers are employed by technology industries than the nation as a whole. This data reasserts the value and importance of the Techlandia partnership to our economy and society.
Want to see more data? Check out Techlandia’s recently updated Industry Data page.