Despite Elon Musk's move to the Lone Star State, the speculated mass relocations to Texas appear to be on hold for the time being, according to a new monthly workforce report.
On April 19, the talent cloud company, iCIMS, published the latest installment of its Monthly Workforce Report. The findings detail plummeting job applications in a number of states as well as a widening gap between the number of out-of-state applicants and out-of-state hires. And despite Elon Musk's move to Texas, the speculated large-scale relocations to the Lone Star State appear to be on hold for the time being.
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While some companies have started to bring employees back to the office as vaccination efforts ramp up, a number of organizations have made long-term commitments to remote work. Even in the age of virtual collaboration, the report said that companies have made "little headway in hiring out-of-state applicants." Overall, the findings are based on hiring and application data trends on the iCIMS platform.
In the first quarter of 2019, a 12% gap existed between the number of out-of-state applicants and the number of out-of-state hires. In 2020, this gap was similarly pronounced (11%). This disparity increased in the first quarter of 2021 with out-of-state applicants outnumbering out-of-state hires by 17%.
"As out-of-state applications continue to rise, out-of-state hires remain stagnant at approximately 8% the last three years, according to iCIMS data," said Rhea Moss, director of data insights and customer intelligence at iCIMS.
"And while the pandemic has shifted many aspects of the workforce, companies would benefit from removing all location requirements in order to scoop up top talent, considering expected trends aren't always what they seem," Moss continued.
Job applications and state-by-state trends
From January to March, the number of job openings and hires on the platform increased 22% and 18%, respectively. However, the number of job applications decreased 23% during this time period.
Applications in some states have decreased substantially more than others and iCIMS data is parsed out to reflect U.S. hiring and job search trends at the state level. For example, applications in New York have dropped 25% in the first quarter of 2021 compared to the first quarter of 2020. During this time period, job applications decreased 22% in Florida and 20% in California.
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Texas relocations on hold
Texas has been viewed as a potential destination for the speculative California tech exodus amid the switch to remote work en masse. In December, Tesla CEO, Elon Musk, announced that he had moved to Texas following a number of high-profile headquarter relocations to the area (Hewlett Packard and Oracle).
The Lone Star State's Silicon Hills has made plenty of headlines about becoming the next Silicon Valley, but the iCIMS report paints a different picture.
"We've seen a lot of buzz lately around people moving to Texas, specifically the Austin area. Elon Musk has been a large supporter of increasing housing in Austin since Tesla and SpaceX look to fill hundreds of jobs in the state. However, interestingly enough, our data shows that applications to jobs in Texas are down 15%," Moss said.
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