Dive Brief:
- Indeed.com’s data team found that 38% of tech jobseekers in the San Francisco and San Jose areas are looking to other tech hub locations for jobs, MarketWatch reports. That figure is up from 27% four years ago. Jobseekers in Silicon Valley had the highest outbound interest in working elsewhere.
- Other notable tech hubs include Boston, Houston, New York, Los Angeles and Austin. Jobseekers looking at these locations tend to be mid-career tech workers ages 45 to 54.
- The high cost of living in Silicon Valley might be the driver pushing some job searches to other tech hubs, according to Indeed’s data team. A one-room apartment in San Francisco can cost $3,000 a month on average and $2,500 in San Jose.
Dive Insight:
One benefit of working outside of Silicon Valley is the longer job tenure. For example, software engineers spend on average 28 months in San Francisco, compared with 42 months in New York City.
The cost of housing alone is enough for tech workers to look outside of Silicon Valley for jobs. To attract these workers, employers in other locations with the resources might offer relocation incentives to those willing to make a change.
Zapier, a San Francisco-based startup specializing in workflow automation, is offering its staff $10,000 to “de-locate” outside of San Francisco. CEO Wade Foster recognized that the high cost of living in San Francisco strains the finances of Zapier staff. Indeed, more companies may begin to look outside California for offices as cost of living increases and employment laws become more strict.
Such changes also signal the general tech transformation happening in every industry. Legacy companies known for manufacturing now include a focus on digitalization, which means tech talent is needed in every part of the country.
