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This summer, MPICT released an extensive 2010 ICT industry and
workforce study for California.
The Information and Communications Technologies (ICT) sector
encompasses all rapidly emerging, evolving and converging
computer, software, networking, telecommunications, Internet,
programming, and information systems technologies. ICT is a
comprehensive framework for organizing these inter-related,
interdependent and rapidly changing high-tech fields and
industries - and the ICT workforce, which spans organizations
of all sizes, kinds and industries. The ICT term is widely
used outside the U.S., for example, by the U.N., European
Union, World Bank, and International Telecommunications Union.
This is a groundbreaking study of the California economy using
the ICT framework.
The research was a collaboration of the Mid-Pacific ICT Center
(MPICT), a regional effort to improve ICT education at
community colleges funded by the National Science Foundation,
and California Community College (CCC)
Economic and
Workforce Development program (EWD)
Centers of
Excellence (COE).
According to the study, ICT industries and employment are
strategically important parts of California and U.S. economies
that are faring well and have strong future prospects - a
welcome bright spot in a long, dark economic downturn.
Employers across California report strong job growth for ICT
workers.

Strong ICT Industries:
Mapping existing industry classifications to ICT, ICT
companies:
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represent about 4% of all California companies,
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bring in 6% of California revenue,
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employ a million workers in California,
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pay 12% of private sector wages,
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2nd among California industry clusters by wages paid,
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with wages per employee about twice the State average,
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and expected job growth of 20% between 2006 & 2016,
outpacing most other sectors.
Intuitively, many realize ICT industries are big and important
in California, but ICT is considerably larger than previously
acknowledged in the state using existing industry categories.

Strong ICT Employment:
Not all ICT industry workers do ICT related work, but ICT
related work occurs in most industries today. Mapping existing
job classifications to ICT, the ICT workforce is now:
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about 1 in 20 jobs in the U.S. and in California,
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with strong growth projections of 46,000 annual new and
replacement jobs in California,
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paying about twice the State average,
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California’s 8th largest job cluster by job count.
Strategically
Important:
The study also included primary research. More than 600
California companies were surveyed, a sample representing the
geographic, company size and industry diversity of the State.
Among the findings:

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California companies anticipate 3.8% overall employment
growth over the next two years. However, companies providing
ICT goods and/or services expect 8.5% employment growth, and
those that do not expect overall employment to shrink by .4%
over the next two years.

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California companies anticipate 7% overall ICT workforce
employment growth over the next two years, significantly
higher than the 3.8% overall employment growth estimates.
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Companies providing ICT goods and/or services expect
11.2% growth in ICT workforce employment in the next two
years, compared with overall employment growth
expectations of 8.5%.
-
Companies that do not provide ICT goods and/or services
expect -.4% overall employment growth, but expect 3.7%
growth in ICT workforce employment over the next two
years.
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85% of California companies require at least some employees
to fill ICT workforce roles, and 74% agree or strongly agree
that these roles will grow in importance for their employees
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Overall, 36% of respondents expect to have more, and only 2%
expect fewer people in ICT workforce roles in two years
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More than 50% of firms report difficulty recruiting
employees with appropriate ICT workforce skills, a
surprising finding in this difficult job market and a wakeup
call for ICT educators.

ICT workforce roles were simplified into 5 categories. Firms
reported these roles as important or extremely important:
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Roles supporting ICT end user devices, operating systems,
and applications, like desktop support, help desk, computer
support specialists, and computer repair – two-thirds.
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Roles supporting Enterprise-wide and data center ICT
systems, such as phone, server, data storage,
telecommunications and networking systems – two-thirds.
-
Roles supporting Internet, Intranet and other online or
web-based systems and services, such as web design and
development, online commerce and webmaster – 71%.
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ICT management roles, such as system and business process
design, vendor selection and management, and ICT strategic
planning – 58%.
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Hardware and software development roles, like hardware
engineer, software engineer and programmer – 51%.
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Roles supporting marketing and sales of ICT related products
and services – 41%.
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More than half of California companies don’t know or have no
opinion about whether California community colleges are
doing a good job developing the ICT workforce, suggesting an
awareness problem. Of those with opinions, many more agree
than disagree that California’s community colleges are doing
a good job in this regard, especially in larger companies.
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Almost ˝ of California firms do not require a bachelor
degree for at least ˝ their ICT workforce.
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A majority of firms (51%) would value statewide ICT
standards that would align employer needs with education and
training programs. Overall, firms are 3.5 times more likely
to agree or strongly agree than disagree or strongly
disagree that they would value ICT standards.
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Approximately half of all firms and 58% of ICT firms
indicated desire for a digital literacy, or ICT end user
knowledge and skills credential. Overall, firms are 2.9
times more likely to agree or strongly agree than disagree
or strongly disagree they would value a Digital or ICT
end-user knowledge and skills credential.
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Across the various classifications of firms, technical
competence specific to the position is the most important
skill area for new ICT-related role hires. Overall, more
than 60% of employers report interpersonal communication
skills, creative problem-solving skills and an ability to
work with different groups or departments are among the most
important skills for new ICT-related role hires.
Intuitively, most people think of California, especially the
San Francisco Bay Area and Silicon Valley, as a global leader
in ICT. California policymakers, investors and education
planners should use the information in this report to develop
and implement strategic plans to improve ICT infrastructure,
adoption, industries, employment and education — to build on
California’s strengths and stay competitive in the global
community. Information and communications technologies are
empowering and enabling for all kinds of individuals and
organizations. Implementing high quality ICT strategic and
educational plans should lead to increased economic
performance and higher employment in the state, across all
industries and economic strata. It should also help to stem
the nation’s decline in global rankings of important measures
of ICT competitiveness.
The report is available free at
www.mpict.org/ict_study_phase2.html. A recorded
presentation of report findings is also available free on
MPICT’s YouTube Channel at
www.youtube.com/mpictcenter#p/u/5/UExXE7Yqgeg.
MPICT hopes to complete a more in-depth Phase 3 continuation
of this study over the next year, which will dig deeper into
ICT.
Back to Q3 2010
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