While the tech sector remains predominantly male, it is changing. Although white male representation declined rapidly in executive jobs, other races and genders have experienced a significant increase in employment. For example, the proportion of white women in professional jobs grew rapidly. The percentage of Black and Hispanic males has increased significantly. However, the proportion of Asian males has remained static or declined. Regardless, the tech sector continues to face a diversity problem.
In this election, the tech sector has emerged as a key issue for both parties. The Senate’s election-year budget will depend in part on how well tech workers are represented. Assuming the incumbent party wins the election, the technology sector is likely to remain a crucial issue for the government. Regardless of the outcome, tech workers in the outer metros and inner cities will be key voters for whichever party forms government. But how can we ensure that the tech sector is represented by the government?
In a recent report by IHS Markit, Minnesota’s high-tech sector is projected to shift towards services this decade, a change from last decade’s weak performance in data processing. Eight of the top ten projected growth industries in Minnesota are in service categories, while aerospace products, semiconductors, miscellaneous manufacturing, and medical goods are expected to remain solid. Conversely, jobs in agriculture/construction/mining equipment manufacturing and metal ore mining are projected to decline.
Despite its diversity, the tech sector is rich with innovation. For instance, biotechnology companies are developing drugs to combat disease such as AIDS. Once considered insurmountable, AIDS is now treatable with cutting edge technology. The coronavirus pandemic has triggered an increased need for video conferencing, allowing doctors to communicate with patients, their families, and co-workers to discuss next steps. And the list goes on.
The recent decline in IPOs and trade sales has made it harder to get into the public markets. Many high-tech companies used special purpose acquisition companies (SPACs) to access the US market through the backdoor. This has hampered M&A activity, sapping valuations for late-stage funding rounds in the US and around the world. As a result, many companies have turned their sights to the startup market. But the long-term future of the tech sector remains bright.
While some stocks in the tech sector are found on major US stock exchanges, Nasdaq is particularly dominated by tech companies. OTC stocks are generally under or non-reporting, and data is outdated and incomplete. These stocks are highly speculative and have unproven business models. So, it’s best to invest in these stocks only if you have the time to understand the nuances of the tech sector.