Analysts say Idahos fast-growing number of start-ups and small tech firms has helped bolster employment in the industry, as workers experience job cuts at some of the states largest technology companies, Micron and Hewlett-Packard. According to Idaho Department of Labor figures, Micron shed between 2,100 jobs last year, and H-P eliminated another 300. Overall thats meant that large-firm employment (defined as companies providing more than 500 jobs) fell in the state by about 4 percent from 2006 to 2007.

At the same time, employment at medium (49-499 jobs), small (5-49 jobs) and micro (0-4 jobs) firms rose across the board. Last year about 32 percent of all Idaho high tech jobs were provided by companies which created fewer than 50 jobs. Factoring in medium-sized firms, that figure grows to 55.9 percent.

The overall result of large-firm contraction and medium-to-micro firm growth is that despite deep cuts to technology giants like Micron and H-P, the total industry actually added nearly 900 jobs.

Economists said in recent news reports that smaller firms have been performing a similar function in other northwestern states like Oregon. However, it all may be part of a larger boom-and-bust cycle.

“We haven’t kept data on the high tech sector alone for a long enough time to know if it is cyclical or not. My guess, right of the top of my head: It probably is, like most sectors,” Idaho state labor economist Janell Hyer told IBR.

by Zach Hagadone of the Idaho Business Review