More Than 500,000 Jobs Created in ‘App Economy’ – Report

Susan Hall

More than a half-million jobs have been created since the iPhone debuted in 2007 as part of the “app economy” — the ecosystem surrounding application development, according to a report from CTIA — The Wireless Association and the Application Developers Alliance.

The new study, titled “The Geography of the App Economy,” ranks states based on the number of app-related jobs there and their economic impact. It also rates them on “app intensity” — the proportion of app-related jobs compared to the overall total. Washington state took that title with app workers making up 4.47 percent of total employment. California won in overall numbers (152,000 jobs) and in economic impact ($8.2 billion).

The study grew out of a previous report from February that drew criticism for including even the pizza delivery guy across the street in its numbers of jobs created from app development. This report notes that the “app economy” isn’t limited to those who design and create apps, but include those who “extend the app to new operating systems, add new capabilities, and respond to customer questions” and “make sure that the apps are secure against hackers and cyber-attack.” And then there are the salespeople and office staff and others.

The jobs number is an estimate based on job postings for Web developers, computer software engineers and computer programmers in April. From there, the authors from South Mountain Economics guesstimated a total number of development jobs and other positions created in support of the app jobs based on data from The Conference Board and the U.S. Bureau of Labor Statistics.

Though the top app-creation states are obvious, there are some surprises farther down the list, such as Georgia (No. 5) with companies such as Airwatch, which makes software that helps companies manage smartphones provided to employees as well as BYOD scenarios.

In addition, it notes “app clusters” — and they’re not necessarily where you might think. It points to one in St. Louis, home to companies such as Integrity, a digital marketing agency; Graphite Lab, a videogame and website developer; and Coolfire Solutions, which in addition to commercial work produces apps for “the military and intelligence communities.”

It notes other app clusters in Austin and Dallas, Texas; Madison, Wis.; and Detroit.

The message is similar to that from a recent tech job “hot spot” map produced by the Bay Area Council Economic Institute — IT jobs aren’t just in Silicon Valley.

Add Comment      Leave a comment on this blog post
Oct 31, 2012 4:15 PM Andrew Andrew  says:
According to the Bureau of Labor Statistics, an Application Software Developer makes a Mean Annual Wage of $92,080. In the United States, as of May 2011, there were an estimated 539,880 people employment as Application Software Developers. If you're looking for a job as a software developer, go to today and find the job you've been looking for. Reply
Nov 4, 2012 8:48 PM Nabeal T. Nabeal T.  says:
“More Than 500,000 Jobs Created in ‘App Economy’ – Report” has taught me that more than a half-million jobs have been created since the IPhone was invented in 2007. What does this mean for individuals who are looking for jobs? According to a study, titled “The Geography of the App Economy, it tells us that the number of app-related jobs has sky rocketed and it has impacted the economy. Washington state saw a 4.47 percent of total employment while individuals in California secure 152,000 jobs because of app-related jobs. This had an economic impact of 8.2 billion. Individuals should search Granted on-line so they can secure their next job and start filling out their employment application. Reply

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