The Bay Area Council Economic Institute has recently found that high-tech companies cause a ripple effect of job creation in communities throughout the United States - for every high-tech job that is created, another 4.3 jobs are created in the local community.
"The Googles and the Apples of the world are bringing tremendous wealth to [Silicon Valley], and that money is filtering its way throughout the entire economy," said institute economist and research manager Ian Hathaway, who wrote the report.
"Say I'm an engineer at Google. By the time I go out and pay for my housing and my taxi rides and my dinners, and by the time Google is done spending money on lawyers and shuttle drivers and cooks, that filters through to 4.3 jobs for every one (at Google)."
However, the phenomenon isn't local to Silicon Valley and San Francisco. The number of high-tech jobs nationwide grew 11.1 percent from 2004 - the depths of the dot.com bust - to 2011. That compares with a 3.7 percent increase overall in private-sector jobs during the same period. And even through the recession of the late 2000s, unemployment rates for tech workers remained far lower than for the overall workforce.
Of all the hubs of high tech growth in the US, Silicon Valley leads in high-tech jobs. In the San Jose-Sunnyvale-Santa Clara area, nearly 29 percent of all jobs were in high tech last year alone. Boulder, Colo., was second overall with 22.7 percent of its jobs in technology, and Huntsville, Ala., third at 22.4 percent. Delaware led all states with a 12.8 percent gain in tech jobs from 2010 to 2011, and in Greensboro, N.C., tech jobs increased 36.3 percent in the same period, the biggest gain of any city in the country.
98 percent of U.S. counties had at least one high-tech business last year, the report said, which experts claim should be a signal for elected officials to focus on attracting more tech companies. Technology is growing a whole new economy that allows people to take advantage of the wealth, whether or not they are working for a tech company.
To learn more about how CodeVue can help your company attract top tech talent, visit www.hirevue.com/codevue.