It likely would come as no surprise that the world of technology is filled with numbers. Those figures offer ways to tell whether an idea is working as planned and where improvements may be needed.
On the surface, the Arizona Technology Council’s newly released Q1 2023 Arizona Technology Industry Impact Report does that. For example, the state’s semiconductor manufacturing industry now employs more than 24,000 Arizonans — more than three times the national average. For sure, it would be hard to even plan for something like that.
In addition, technology job growth in Arizona through May 26 was 2.9%, the same pace as that of California. Overall, more than 215,000 technology industry jobs were counted in the state.
Arizona's tech sector is exhibiting its usual resilience and amid these numbers, certain companies stand out with growth in job postings, reflecting the dynamic nature of the industry. Admittedly, after a few years of major job growth and reaching an all-time high in the first quarter of 2022, our technology industry is beginning to see a decline.
However, we expect the semiconductor manufacturing industry to continue experiencing major increases as new facilities near completion and more suppliers flood the Valley. Signs of a rebound are indeed positive.
But the quarterly report goes beyond the numbers. In addition to statistics, this latest version offers links to news and information about activities that are planting the seeds for the rebound to occur and possibly not let up.
Creating inclusive, diverse workforce
To give more people an opportunity to play a part, the tech industry is taking the steps toward creating a more inclusive and diverse workforce. In the Impact Report, Scottsdale-based Terkel shares valuable insights and tips for sourcing a sustainable talent pipeline of tech talent from underrepresented backgrounds. By partnering with staffing agencies and supporting STEM programs, businesses can tap into a diverse talent pool, fostering creativity and innovation.
The timing for such information could not be better. The report shows only 38.7% of Arizona’s tech workforce were identified as belonging to nonwhite groups. It was good to see the jobs they and their white colleagues held include vital positions such as information security analysts, computer and information research scientists, and network and computer systems administrators.
No doubt some of the Blacks in the tech workforce were counted in the new WalletHub study that ranked Arizona’s economy as having the second most racial equality in the 50 states and the District of Columbia. On a scale from 1 for most equality to 25 for average, they were third in median annual household income, fourth in labor-force participation rate and ninth in share of executives.
But looking a little deeper at the technology employment numbers by race in the report, there is plenty of room for improvement for all nonwhite groups here. Consider that the bottom-three job categories in terms of employee totals were computer and information systems managers, web developers, and computer programmers. By comparison, the top three categories were communications equipment operators/all other, telecommunications line installers and repairers, and signal and track switch repairers. We need to see a shift toward the more professional and leadership roles.
The Council’s members already are doing their part to change things. For example, Intel is working to make careers in technology inclusive and accessible through unique partnerships while inspiring a new pipeline of diverse talent to join the technical workforce. It joined forces with the Maricopa County Community College District to create the semiconductor manufacturing Quick Start program. The company also directly spent $223 million with diverse-certified Arizona businesses in 2022.
Speaking of dollars, technology industry earnings in the state have exceeded $25 billion, according to the report. In addition, 12-month industry earnings growth came in at 3.4%.
I tried to keep from bombarding you with numbers in this space but it’s difficult to discuss the state of the state's tech sector without them. That’s especially true when the goal is to become No. 1.
You can view the full Q1 2023 Arizona Technology Industry Impact Report here.
Steven Zylstra is president and CEO of the Arizona Technology Council.
