New Analysis: Tech Jobs and the Many Jobs They Create
An analysis released this week (April 13) by the Bay Area Council Economic Institute found that technology jobs are as important to local economies as ever, generating over four additional jobs for every one technology job. The especially large local multiplier for the high-tech sector reflects the fact that workers in these industries have higher levels of disposable income, which is spent on meals, transportation, housing, and other services in the local community. It also reflects the fact that high- tech companies tend to cluster around one another and create meaningful ties to their community, in-turn attracting additional high-tech firms and the local service providers that support their business activities.
In 2012, the Economic Institute published Technology Works: High-Tech Employment and Wages in the United States, a first-of-its-kind look at high-tech employment, wages, and the ripple effect the sector has on job creation in local metros. In the 10 years that have passed since publication, high-tech firms have grown to become some of the largest companies in the world and expanded to regions across the country. Given technology’s importance to the U.S. economy, these findings provide policymakers with updated insight as they navigate the uncharted economic waters ahead.