Brighter picture awaits jobless tech workers

Mar 12th, 2005 | By Bill | Category: Employment News



Brighter picture awaits jobless tech workers

The job market should brighten this year for the state’s laid-off technology workers.

That’s the forecast from the Massachusetts High Technology Council, a trade association that represents 120 technology chief executives who work in healthcare, biotechnology, software, and medical device development and production.

The study, based on the responses of 97 chief executives, found 52 percent intend to increase recruitment this year and 6 percent will cut jobs. Of those looking to hire, 78 percent anticipate sales increases.

“We have been doing the survey since 1987 and in the past it has been a snapshot of how technology CEOs view the innovation climate in Massachusetts and how competitive we are,” said Cort Boulanger, vice president of the council. “This year, for the first time, we asked about jobs… It looks like the next 12 months will be positive.”

The forecast comes after some lean years and false starts in the state’s high-tech sector, however.

“The orders were not coming in and the sales growth was not really kicking in, but this year many are saying they will increase sales,” said Boulanger.

The council’s survey also looked at how the state is perceived by tech executives. Most described the Commonwealth as a protech state. For example, 20 percent view Massachusetts as an outstanding place to run a company, 64 percent said it was a “good” place, 14 percent described it as fair, and 2 percent said it was a poor place to launch and run a business.

Historical data compiled by the council suggest that, overall, Massachusetts is perceived as supportive of innovative ideas. The organization has been examining how the state is perceived by high-tech chief executives since 1987, when 80 percent gave it a good or outstanding rating.

During the recession that began in the late 1980s, the rating dropped. In 1989, for example, only 47 percent thought the state was a good place to launch a technology venture. By 1992, just 38 percent gave Massachusetts high marks. Boulanger attributed the low grade to the state’s response to the economic downturn.

“Instead of providing a strategy to help the state out of its fiscal… doldrums, they increased taxes, added new costs onto employers, and slashed the state budget,” he said.

By 1993, the economy had changed and the dot-com boom had begun. That, coupled with a positive plan for tech growth by political leaders, caused an immediate jump in executives’ positive perception of the state to 60 percent.

“Now, for the most part, high-tech CEOs feel the state is moving in the right direction in terms of making Massachusetts a more competitive place to run a company,” said Boulanger.

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