On Reflection: Changing the Dynamic

Jobs are the beating heart of every regional economy, providing the tax revenues and the wealth that support everything else. And when it comes to this region, technology jobs particularly in software are critical.

The states information and communications technology (ICT) sector encompasses 8,610 companies that generate annual revenues of $37 billion, according to a recent study by the Washington Technology Industry Association (WTIA). The top 10 alone are worth $600 billion in stock valuation. These companies employ 238,900 workers, paid out $22 billion in wages during 2013 and generated tax revenues of $2.8 billion.

But its the 90,000 or so software developers, network architects, computer science researchers, applications developers and other high-level coders who are most critical to the region, not just for their roles at tech firms but also at large, cutting-edge businesses like Boeing, Nordstrom, Starbucks and Expeditors International as well as at startups.

It is to hire away these software developers that companies like Facebook and Google establish major operations in Seattle. Each ICT job helps create an additional seven jobs in the state.

Software developers are also critical to what many pundits believe will be the next revolution of computing: the application of data science to address social issues. Ed Lazowska, UW professor of Computer Science & Engineering, for example, points out that big data analytics, in which this region is a leader, is already being used by local firms to improve traffic flow, health care, energy efficiency, manufacturing, education and research.

Yet there are 3,000 more openings for core ICT positions than there are graduates available to fill the jobs, according to the WTIA report.

A recent McKinsey and Co. study written for the Seattle-based Technology Alliance notes the existence of 9,313 job postings for software engineers and data scientists in greater Seattle at the end of February. With limits on how much talent we can bring in from overseas and out of state, a severe shortage of high-level students trained locally remains.

We are a huge importer of [software] talent; for every 10 jobs available we only fill one locally, says Michael Schutzler, CEO of WTIA. While retraining workers will help fill some lower-level jobs like tech support and Washington will continue to import talent, We will not be able to grow by relying exclusively on people from elsewhere, says Schutzler. We have to grow our own talent.

The few programs in the state that train high-level software engineers are far too small to fill the growing demand. The University of Washington graduates only 300 students a year in computer science and engineering.

The good news is that change is afoot. Washington State University has plans to expand its program aggressively by adding five data scientists to its computer science and engineering faculty this year and two more next year. And the UW wants to double its computer sciences program to graduate 600 students a year. To help accomplish that goal, it is asking the state to pay $40 million of the $110 million cost of a new computer science building. Also, efforts are being made to get the state to put more money into K-12 computer science education. Such investments would bring strong returns to the region.