Internet-Linked Jobs, Revenue Jumped in 1999

The number of people employed in Internet-related jobs doubled last year to 2.5 million as the industry enjoyed a 62% jump in revenue, a study found.

The University of Texas study found that the industry generated nearly $524 billion in revenue in 1999, up from $322 billion a year earlier. Researchers examined 3,000 U.S. companies that generate all or part of their revenue from selling goods, creating hardware or software, or acting as support or intermediaries for Internet transactions.

The fastest-growing category was e-commerce, which saw a 72% increase in revenue to $171.4 billion from $99.8 billion a year earlier as traditional bricks-and-mortar retailers such as Sears, Roebuck & Co. embraced Internet sales and companies increasingly began buying their own goods online.

“This economy is not only growing rapidly, it is becoming more and more productive,” said Anitesh Barua, who conducted the study for the Center for Research on Electronic Commerce at the University of Texas at Austin.

Researchers estimated that more than 50,000 companies generate some or all of their revenue from Internet-related activities.

The research, which was funded by Internet equipment provider Cisco Systems Inc., is in line with other surveys that show the Internet has boosted productivity and been a key factor in sustaining growth.