The once-booming technology industry suffered a 10.5% employment drop during the last two years, according to a study by one of the industry's largest trade associations.

The Washington, D.C.-based American Electronics Association's Tech Employment Update measured U.S. Bureau of Labor Statistics employment figures for 2001 and 2002 for electronics manufacturing, software and computer-related services, communications equipment and electromedical equipment.

High-tech employment nationwide fell by 560,000 jobs, from 5.7 million to 5.1 million. The communications services industry fell from 1.46 million to 1.33 million jobs while electronic components and accessories dropped from 413,700 to 280,000 jobs. Electromedical equipment added 500 jobs, growing .8%. Software and computer related services fell by 1%.

AEA, which ranks Louisiana 34th in the nation in high-tech employment, reports the state's tech sector employment grew 45% between 1995 and 2001. State industry officials expect the growth to continue.

Companies are landing prime contracts, sharing strategies and collaborating on large business opportunities, said Dan Henderson, director of the Information Technology Cluster Development for the state Department of Economic Development.

The cluster has also been working to grow and retain the 2,000 jobs at the National Finance Center in New Orleans, Henderson said.

Science and Engineering Associates Inc. has been working on an electronic payroll initiative to add several thousand jobs to the center, said Chief Executive Officer Bobby Savoie. A team of local companies will use government work to bring more high-tech employers into the region, he said.

Resurgence Software Inc. at the University of New Orleans Research and Technology Park formed in 2001. Through UNO's support, the maritime software company has accelerated its growth, said James Bremner, vice president of business development. Though he did not have revenue figures, he said the company will add up to 20 employees within the next 18 months to more than triple its nine-member staff. The company will need the new employees for its recent alliance with Lloyd's Register Group in London to market Resurgence Software's Wave, a ship analysis software. Resurgence will hire students from UNO, Bremner said.

Savoie said the regional homeland security office being pursued by Louisiana would bring many high-tech IT jobs.

"Companies chase the money," Savoie said. "If we have the work here, companies will locate offices here, and that will result in more work."

National IT firms are already looking for software expertise in the New Orleans region, Henderson said.

Local tech recruiters now must compete with national tech recruiters to hire Louisiana employees, said Lucy Bosworth, general manager of Ascent Consulting Group. Her 11-year-old company places direct and contract hires for software developers such as Lewis Computer Services Inc. in Baton Rouge and Protier in New Orleans.

"When times were good, national companies did not care about the market here, but when times are hard, they come in," Bosworth said.

National recruiting firms with local offices are slashing placement fees, Bosworth said, and widening their focus.

"They're pulling a Wal-Mart, so to speak," Bosworth said. Her company is managing to hold onto established, long-term relationships with regular clients. "But smaller companies are having a hard time keeping up."