In Part 1, we estimated the number of App Economy jobs in the U.S. The same methodology also allows us to estimate App Economy employment by state, since job postings typically identify the location of the job. In our experience the location algorithm used by Indeed is generally quite good in resolving ambiguous locations and assigning them to the correct state.[i]
Table 1 shows our estimates of App Economy employment by state as of December 2015. The top five are California, New York, Texas, Illinois, and Massachusetts, with California having 22.7% of national App Economy employment. We can compare this ranking with our 2012 estimate of App Economy employment by state.[ii] That paper found that the five states with the largest App Economy employment were California, Washington, New York, Texas, and Georgia. California had roughly 29% of the total in 2012.
The implication is that App Economy employment has become less concentrated over time. States such as New York, Texas, and Illinois have seen a quadrupling of their App Economy jobs over the previous three years, as growth spread out from California. Meanwhile Washington dropped from second in the 2012 ranking to 10th in the current ranking, with virtually no gain in App Economy employment at all.
|Table 1: Top 25 App Economy States|
|Share of US App Economy jobs||December 2015 App Economy Jobs (thousands)|
Data: Progressive Policy Institute, Indeed
It’s worth pointing out that these jobs numbers are quite significant in many states. For example, we estimate that Illinois, a state that has lost roughly 60 thousand nonfarm jobs since 2007, has about 85 thousand App Economy jobs. That means without the App Economy, the Illinois job loss would have been considerably worse. Ohio has 50 thousand App Economy jobs, while Missouri has 32 thousand.
The ranking in Table 1 in part reflects the different size of states. To account for scale, Table 2 ranks states by their app intensity—the share of app economy jobs in the total workforce. We see that California still comes in first, as expected. However, the next four on the list are the District of Columbia, Massachusetts, New York and Washington (state).
Table 2: Top 25 States by App Intensity, December 2015
|2||District of Columbia||2.1%|
*App intensity is the number of app economy jobs divided by the total number of jobs in the state. Data: Progressive Policy Institute, Indeed
The App Economy is spreading out from its birthplace in Silicon Valley, to other states across the country In future work, we will look at metro regions, and identify some of the policies which help foster App Economy growth, both in the United States and globally.
[i] We note that since some job postings list multiple locations, the assignment process does have some arbitrariness to it.
[ii] “The Geography of the App Economy,” October 2012. The one significant difference in methodology is that the 2012 study validated each state individually, and averaged that result with the national validation ratio.