CXO

Why one of these 5 US cities could be the next Silicon Valley

As cost of living rises in the Valley, many tech jobs have spread to other parts of the US. Here are the top cities recruiting for software and tech positions, according to a new Glassdoor report.

While Silicon Valley has been the hub for tech jobs for years, housing costs and other variables have lured some tech workers to settle elsewhere. A Glassdoor study, released Wednesday, looked at job postings in software to show exactly where these desirable new locations are.

The study looked at "software" job listings—including software engineer, software developer, software engineering manager and others—on Glassdoor for US employers, between June 1, 2012 and June 1, 2017. It examined trends related to hiring in industries such as retail, banking and financial services, and manufacturing.

According to the report, San Jose, California—the epicenter of Silicon Valley—has experienced a drop in software-related jobs over the last five years. Cities like Seattle, Washington, D.C., and Detroit, on the other hand, have seen growth in this area.

The five top cities to recruit software engineers and other tech positions are:

1. Seattle (6.7% growth in number of software-related positions)
2. Washington, D.C. (1.3%)
3. Detroit (0.8%)
4. Denver (.7%)
5. Austin (.7%)

The report also outlined how software jobs have changed by industry. Specifically, retail has seen the greatest increase in software-related jobs—a 7.5% jump since 2012. And while the banking and financial services industry, as well as manufacturing, does not employ as many in this area, they have also experienced big gains—banking and financial services grew 2% in this area, and manufacturing saw a 1.7% increase. See full chart below.

gdprblogchartstechjobshiftindustrygain-3-2.jpg
Image: Glassdoor

"Companies across a wide range of industries and locations increasingly need to recruit tech talent to power their businesses, improve operations and support bottom line growth," said Andrew Chamberlain, Glassdoor chief economist, in a press release. "Many companies today have online and mobile presences, and we have observed a big exodus of tech jobs out of the sectors and geographical hubs we traditionally think of as tech."

Interested in learning how to land a job outside of Silicon Valley? TechRepublic's Alison DeNisco reported on the top companies hiring outside the Valley.

SEE: Launching a startup: A primer for new entrepreneurs (Tech Pro Research)

The 3 big takeaways for TechRepublic readers

  1. The biggest growth in software-related jobs postings occurred in Seattle (6.7%), followed by Washington, D.C. (1.3%), according to a new report from Indeed.
  2. In contrast, these same jobs in San Jose—the epicenter of Silicon Valley—dropped 7.7 percentage points from 2012 to 2017.
  3. Retail has experienced the greatest growth in software-related jobs over the past five years, going from 6.4 percent in 2012 to 13.9 percent in 2017.

Also see

About Hope Reese

Hope Reese is a Staff Writer for TechRepublic. She covers the intersection of technology and society, examining the people and ideas that transform how we live today.

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