Electronics Job Slump

Fueled by defense cutbacks and a sagging worldwide computer market, employment in the U.S. electronics industry dropped by 100,000 workers, to 2.46 million, in the year ended in March, 1991, the American Electronics Assn. reported Tuesday. That was the first drop in five years, the trade group said.

The AEA said employment in virtually all segments of electronics has been steadily dropping since December, 1989, and is expected to continue declining for at least the next six months. Software companies, which increased their employment by 10%, represented the only bright spot in the AEA’s survey. All other industry segments declined in the period.

Category March, 1990 March, 1991 % Change Computers and 452,900 433,600 -4.3 Office Equip. Semiconductors 245,800 235,700 -4.1 Other Components 358,200 338,600 -5.5 Prepackaged Software 110,400 121,200 +9.8 Communications Equip. 262,200 246,700 -5.9 Search/Navig. Equip. 287,400 265,100 -7.8 Other (Instruments, 843,100 819,100 -2.8 Medical Electronics, Consumer Electronics, etc.) Total Employment 2,560,000 2,460,000 -3.9

Source: American Electronics Assn.