Understanding Maryland’s Economic Competitiveness: Spotlight on Technology
Dec 20, 2023
Maryland has a sizable technology sector, providing high-paying jobs and innovation. However, the state is currently experiencing some declines in the share of total employment, median wages and growth of tech establishments when compared to neighboring states and regions.
Economic Indicator Spotlight: Examining the High Tech Sector in Maryland
What the data is telling us:
Maryland has a considerable number of high-tech business establishments but lags behind in business growth.
- The data: Maryland has 14,227 high tech business establishments with payroll; however the percentage of business establishment change is ranked as 43rd in the country.
- Why it matters: Maryland has a considerable number of high-tech business establishments, but its ranking of 43rd in terms of percentage change indicates a slower rate of growth compared to other states. This emphasizes the need for strategies to support and enhance the growth of the tech sector in Maryland to maintain competitiveness and attract further investments.
Maryland tech employment is strong but faces regional competition.
- The data: Maryland's net tech employment ranks highly, indicating a strong tech sector, which can be a positive sign for the state's economy, and can make the state attractive for investment and skilled workers. However, among nearby states, only Delaware ranks worse in this area.
- Why it matters: Having a strong high-tech sector can offer significant opportunities for businesses, as well as benefits to the broader community. Some benefits of a strong high-tech sector include access to a skilled workforce, increased innovation and competitiveness, investments in research and development, and positive economic impact. Some areas to watch include labor costs and competition for talent.
Maryland has a strong share of high-tech jobs.
- The data: Maryland ranks towards the top for the share of high-tech jobs that make up the state's total employment. Maryland's share of total employment is higher than the national average, and among nearby states, only Virginia ranks better in this area.
- Why it matters: Having a strong share of high-tech jobs can have positive impacts on business and the economy. These tend to be high-paying, highly skilled jobs, and a high number of tech jobs can help spur innovation, attract other businesses, and help the economy grow.
Maryland Tech Wages Among Highest in the Nation.
- The data: Maryland ranks 7th in the country for median high-tech wages, with the median wage for a tech worker in Maryland coming in at $109,357, which is 123% more than the median wage for all occupations in the state.
- Why it matters: Maryland's high median tech wages are a sign of a vibrant tech sector, and make the state attractive to top talent, helping to build a highly skilled workforce. The influx of highly-paid workers also strengthens local economies through increased consumer spending and tax revenue. However, the high wages make labor more expensive for tech companies, potentially deterring expansions or new startups in the state. Businesses also must compete harder for talent, raising hiring and retention costs.
Maryland's high-tech sector demonstrates strength with high-paying jobs, but it has experienced some setbacks in terms of share of total employment, median wages, as well as growth of tech business establishments. Continued focus on the growth and competitiveness of the tech sector is crucial for Maryland's overalleconomic success.
While Maryland has a considerable number of high-tech business establishments, its ranking of 43rd in terms of percentage change indicates slower growth compared to other states. Strategies should be implemented to support and enhance the growth of the tech sector, attracting investments and fostering competitiveness.
Maryland’s strong performance in the high-tech sector offers opportunities for businesses and benefits to the broader community, including access to a skilled workforce, increased innovation, and positive economic impact.
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