Telecommunications Industry Association (TIA) Releases New ICT Jobs Report, Welcomes Jobs Speech by President Obama
Report Highlights the Role and Impact of Information and Communications Technologies (‘ICT’) in the American Economy
Washington, D.C. – The Telecommunications Industry Association (TIA) welcomes President Obama’s effort to create jobs across America and commends its member companies for continuing to play a significant role in the creation of jobs and growth and development of the U.S. economy.
While the information and communications technology (ICT) industry is generally thought of as manufacturers, software designers, and online services, the industry’s reach has trickled down into every American’s business, living room, backpack, and pocket. Growth in the ICT sector not only creates jobs tied to the physical deployment of the infrastructure, but leads to added manufacturing jobs for ICT equipment and indirect employment and economic growth through the creation of new businesses, services, and technologies empowered with greater broadband access in energy, health care, education, and other sectors.
A TIA commissioned report on “The Contributions of Information and Communication Technologies to American Growth, Productivity, Jobs and Prosperity,” (written by Robert J. Shapiro and Aparna Mathur, August 2011) finds that “ICT companies accounted for 3,535,000 jobs in 2009.” The report states that “in 2009, ICT firms contributed about $1 trillion to U.S. GDP, or 7.1 percent of GDP. This total includes nearly $600 billion in direct contributions from their own operations and more than $400 billion in indirect contributions through the benefits other sectors derived from the use of ICT.”
“The role of ICT in our economy is tremendous and will continue to play a larger role as the world becomes more connected,” said TIA President Grant Seiffert.
Other highlights from the report include:
» “ICT’s direct contributions to GDP have increased nearly 25 percent since the 1990s, growing from 3.4 percent of GDP per-year in 1991-1993 to an average of 4.2 percent per-year over the years 2005-2009 – gains unmatched by any other industry.”
» “The President’s proposal to fund the development and initial deployment of a nationwide wireless broadband data and communications network for public safety agencies would lead to the creation of an estimated 100,000 new jobs in ICT industries and, over time, produce indirect or spillover benefits of an estimated $4 billion to $8 billion per year.”
» “Investments of $3.4 billion in a ‘Smart Electricity Grid’ under the 2009 Recovery Act should directly produce nearly 30,000 new jobs. If the funding becomes seed money and an ICT-based Smart Grid is developed and deployed, analysts estimate the net economic benefits could range from $48 billion to $76 billion per year.”
» “Lowering the corporate tax burden by 10 percent would increase investments in ICT by nearly $71 billion over several years, which in turn should raise productivity and total business spending on wages, salaries and other compensation by nearly $450 billion… Over several years, these increases in business investment and productivity would drive associated increases in workers’ compensation, sufficient to cover wage gains averaging nearly $5,500 per-worker across the economy, or alternatively, some 6.8 million new jobs, or some combination of higher wages and additional jobs.”
Having worked with the Obama Administration on the role of broadband in jobs creation, TIA asks that the President’s jobs initiative include immediate implementation of parts of the National Broadband Plan that specifically require reallocation of desperately needed spectrum for wireless broadband to meet unprecedented consumer demand. Additionally, immediate ratification of outstanding free trade agreements will also contribute to boosting the U.S. economy and U.S. job growth.
TIA will be officially releasing its commissioned report on “The Contributions of Information and Communication Technologies to American Growth, Productivity, Jobs and Prosperity,” later this month. To access the report in advance, please visit tiaonline.org.
About TIA
The Telecommunications Industry Association (TIA) represents the global information and communications technology (ICT) industry through standards development, advocacy, business opportunities, market intelligence and networking. Since 1924, TIA has been enhancing the business environment for broadband, mobile wireless, information technology, networks, cable, satellite and unified communications. Members’ products and services empower communications in every industry and market, including healthcare, education, security, public safety, transportation, government, the military, the environment and entertainment.
TIA’s 2011 Market Review & Forecast, is available for purchase online at the TIA store. TIA members receive a discount of more than 60 percent off of the cover price. Review copies are available for qualified media.
View video news programming on TIA Now at http://www.tianow.org.
TIA is accredited by the American National Standards Institute (ANSI). Visit tiaonline.org.
TIA’s Board of Directors includes senior-level executives from ADTRAN, Alcatel-Lucent, ANDA Networks, AttivaCorp, Cisco Systems, Dow Chemical Company, Ericsson, Inc., GENBAND, Inc., Henkels & McCoy, Juniper Networks, ILS Technology, Intel Corporation, Intersect, Inc., LGE, Microsoft, Motorola, Nokia Siemens Networks, OneChip Photonics, Panasonic Computer Solutions Co., Qualcomm, Research In Motion, Sumitomo Electric Lightwave Corporation, Tellabs, TE Connectivity, Ulticom, Inc., Walker & Associates and WirefreeCom, Inc. Advisors to the Board include FAL Associates and Telcordia Technologies.
