Back in 1999, the University of Minnesota, Duluth (UMD) and Lake Superior College committed to become two of the first tenants in a new technology center situated in downtown Duluth. The plan for the Soft Center and Duluth Technology Village was to create a campus that joined computer software entrepreneurs and businesses, local colleges and universities, and well-trained students; all with a goal of creating hundreds of high-paying jobs in Duluth.

However, an article in the Duluth News-Tribune recapped how "the Tech Village's completion coincided with the crash of the technology industry in the late 1990s," significantly altering the launch and success of the campus and changing the type of companies that currently occupy the space. But while the Technology Village didn’t attract software and information technology companies as quickly or easily as planned, it’s important to note that the region and the city of Duluth have still seen a huge increase in employment at Computer Systems Design and Services firms since 2000.

According to the most recent data from DEED's Quarterly Census of Employment & Wages (QCEW) program, Northeast Minnesota is now home to 41 Computer Systems Design and Related Services establishments providing 650 jobs and more than $11 million in quarterly payroll. That is up from just 261 jobs back in 2000, a whopping 150 percent increase (Figure 1)! About 82.5 percent of those jobs are located in the city of Duluth, with another 9 percent found in other parts of St. Louis County and the last 8.5 percent spread through the rest of the seven-county Arrowhead region.

At a technical level, the Computer Systems Design and Services industry comprises “establishments primarily engaged in providing expertise in the field of information technologies through one or more of the following activities: (1) writing, modifying, testing, and supporting software to meet the needs of a particular customer; (2) planning and designing computer systems that integrate computer hardware, software, and communication technologies; (3) on-site management and operation of clients' computer systems and/or data processing facilities; and (4) other professional and technical computer related advice and services.”

As originally envisioned, workers in this industry do enjoy high-paying jobs. Through the second quarter of 2016, average annual wages in Computer Systems Design were $68,796 at firms in the region, compared to $40,768 across all industries in Northeast Minnesota. Wages in the industry increased almost 50 percent since 2000, the equivalent of a $22,620 raise.

The largest occupations in this industry include:

As a precursor to the high wages, many computer and information technology-related occupations require bachelor’s degrees. In addition to UMD and Lake Superior College, several higher education institutions have been training workers for these positions to meet the needs of employers.

While these jobs should be in high demand due to the high growth and high wages, it is interesting to see that they are primarily filled by males. Data from DEED’s Quarterly Workforce Indicators (QWI) program shows that 63 percent of jobs in the Computer Systems Design industry are held by men, and just 37 percent of the workforce is female. However, the share of women workers is increasing over time, rising from 32.6 percent in 2000 and increasing nearly 10 percent since the low in 2006 (Figure 2).

For more information about the Computer Systems Design industry in Northeast Minnesota, contact Erik White at erik.white@state.mn.us or 218-302-8413.