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Glass, Andrew J. (American-Statesman Washington Staff). 2000June 6. Job creation from internet grows 35%. Austin American-Statesman, Austin TX. vol. 129 Number 314 page D1. to Top

WASHINGTON - Job creation in the Internet industry grew 36 percent last year and is on track to show the same gain in revenue this year, University of Texas researchers found in a study released today.

The number of workers in the Internet sector now tops that in the U.S. military, and revenues are expected to surpass the auto industry, according to the report.

The semiannual survey on the state of e-commerce, funded by Cisco Systems, was co-authored by Anitesh Barua, the Center for Research on Electronic Commerce's associate director.

It found that revenue per employee, a key measure of productivity, rose 19 percent from 1998 to 1999 as U.S. companies increasingly leveraged their Internet activities to improve efficiency, thereby dampening their need to raise prices.

"When it comes to productivity, digital companies are leading the nation's economic performance." Andrew Whinston, director of the center at the university's Graduate School of Business, and Monday in Washington.

More than 650,000 jobs were added to the Internet economy last year, a 35 percent jump from the previous year. In 1999, it directly supported 2.4 million workers.

And it still needs more. To help companies find qualified job applicants, the university is pushing a program that matches its graduates with jobs.

The Friends of Computer Science program encourages on-campus recruiting by the computer industry, said Steve Thomas, coordinator of external affairs for UT's computer science department.

The program sponsors special gatherings, giving students an opportunity to network and companies a chance to find qualified workers.

Among the other key findings:

  • The Internet economy grew 62 percent last year to $524 billion, and is on track to reach about $850 billion in revenue this year. If current estimates hold up, the sector will outstrip the auto and truck ($728 billion) and the life insurance ($724 billion) industries before year's end.
  • Internet-driven revenue rose 15 times faster than the 4 percent growth rate for the U.S. economy as a whole.
  • The major companies in the study, all of whom were involved online to some extent, generated nearly $1 of every $5 last year directly through the Web. The study includes brick-and-mortar companies, such as retail outlets, that have at least some online sales.

The researchers said the employment gains came from two areas: new jobs created from scratch and companies that shifted existing workers to Internet-related jobs.

The survey covers 2,600 U.S.-based companies, which account for the bulk of online economic activity. It, however, includes all of their operations worldwide.

For more details on the study, go to http://www.internetindicators.com.

Updated: Thursday, September 6, 2007.

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