Silicon Valley has long ruled the tech space, but there may be a new spot for the industry. Recent US tech grads are headed to Seattle over anywhere else since 2022. The city has a 15.2% “in-migration rate” for new tech workers. Austin sits in second place, while San Francisco (in close proximity to Silicon Valley) comes third.
Why Is San Francisco’s Growth Slowing?
The pandemic prompted a lot of change, not least both San Francisco and Chicago had a minor outflow of migration. Meanwhile Austin and Nashville attracted new residents. The reason for this generally comes down to the high cost of living in certain places, but this trend has been slowing more recently.
Is Seattle The Next Tech Boom Town?
The city has seen positive net migration every year since 2021. It’s thought that much of the new tech intake is down to ex-Amazon or Microsoft employees hit by recent mass layoffs, coming to work for Seattle’s many tech start-ups. A recent study by the Washington Technology Industry Association found that the information and communication tech sector increased by 33% in the area between 2019 and 2022, with 89,000 new jobs.
The Washington Technology Industry Association said, tech…
“remains a key driver of Washington’s economy, with the net increase in tech sector employment and tax revenue generation still far exceeding growth among other major sectors in the state’s economy.”
The City of Seattle released a new report warning that they may be relying too much on the tech industry…
“Our regional dependence on the technology sector was a strength for many years, but that is shifting as the sector cools,” … “In addition, the longer-term implications of work-from-home are expected to ripple through other local sectors, with perhaps the construction sector most directly impacted.”
Conclusion
Silicon Valley still reigns supreme but Seattle is giving it a run for its money. Perhaps, the city is right to be concerned about its dependence on the sector, especially as many industry workers no longer go into the office. The fact is, this is an issue many cities around the world face as the way we work continues to change. Do you think it’s too much of a risk?
