Software group points to sector’s economic importance

The Software & Information Industry Association (SIIA) released a report on Thursday that painted a rosy picture of the sector’s fortunes, one that stands in stark contrast to widespread fears of a recession in the U.S.

“One of the things we could not have anticipated was that we’d be releasing this report at a time when the stock market had swooned and lawmakers were focused on an economic stimulus package,” said Kenneth Wasch, president of SIIA. “But it is important as policymakers consider what to do about our economic situation to recognize the role this industry plays in growing the U.S. economy.”

However, the SIIA acknowledged that a recession would undoubtedly have some effect on its membership.

The 48-page report cites statistics culled from various government and private sources, including the U.S. Census and the Department of Labor.

The SIIA’s findings include:

* More than 2.7 million Americans were employed in software and information-related companies in 2006, and net employment growth for those sectors was 17 percent between 1997 and 2006.

* Those same workers earn among the top wages in the nation, taking home an average of $75,400 in 2006 compared to the overall average for private-sector employees of $42,400.

* In comparison, other major but related industries saw their job numbers drop. Computer and electronics manufacturing fell by 27 percent, and telecommunications lost 8 percent during the same period.

* The software and information industry’s growth rate tripled that of the overall U.S. economy in 2005, rising 10.8 percent, compared to the 3.2 percent uptick in the U.S. gross domestic product.

* The number of jobs for software engineers alone will grow to 1.2 million by 2016.

Policymakers must pursue legislation that recognizes the contribution of the tech industry to the economy and ensures it remains strong in the future, Wasch and other SIIA officials said in a conference call on Thursday. Key to this, they said, is producing enough skilled workers through improving the higher education system and reforming immigration policies.

“We have to recognize we are competing as a country for the best-skilled talent,” said David LeDuc, SIIA’s director of public policy. “We shouldn’t be turning away some of the best and brightest workers in the world when in many cases they’re being educated right here.”

The group also called for relaxed trade restrictions, increased penetration of broadband Internet and computer access, and tougher laws protecting intellectual property. “It’s simply unacceptable that we have the rates of piracy as we do around the world,” LeDuc said.

Even as the SIIA calls for the government to ease immigration law, Senator Chuck Grassley, an Iowa Republican, and others have attacked the H1-B temporary visa program, which allows companies to hire foreign workers with specialized skills. Critics contend, among other things, that companies are using H1-B visas to import cheaper labor, passing over U.S. employees and depressing wages.

“There’s no question there’s been some abuse. I’m not going to sit here and argue that there’s been no abuse of this,” LeDuc said.