by Lenny Pierce, Research Analyst
Despite making up only 3.4% of the total US workforce, the technology industry has shown rapid growth in recent years and has played a critical role in the recovery of the US economy by fueling innovation across nearly every other industry in that remaining 96.6%. To assess which markets throughout the US are the strongest in terms of their Tech Talent, CBRE Research has assembled a 2015 “Scoring Tech Talent” report. This comprehensive study applies a diverse set of metrics such as Size of Tech Talent Labor Pool and Tech Talent Growth Rate to determine where the technology industry is most vibrant today, and where we can it expect to be so tomorrow.
CBRE’s definition of “tech talent” is comprised of 20 different occupations including software developers and programmers, hardware engineers and information systems managers. Though the largest percentage of this tech talent works in the “core high tech” industry (36.5%), the remaining percentage works in other industries that simply rely on tech, such as government (6.5% of tech talent jobs), business management (5.7% of tech talent jobs) and education (5% of tech talent jobs).
The 50 biggest markets in the U.S. (in terms of the number of tech professionals) were assessed to create a Tech Talent Scorecard that gauges both their competitive advantages and their comparative ability to grow their tech talent pools. The scorecard is based on 13 different metrics with varying degrees of weight. For example, the cost of employing the actual tech labor force in a given city was weighted more heavily than the cost of office space in said city, since more funding is typically reserved for the latter than the former for tech groups. New England cities were well represented on the scorecard with Boston placing 7th and Hartford placing 41st. Cities that Boston edged out on the scorecard included Chicago (#13), Raleigh-Durham (#14) and Los Angeles (#18). The top three positions on the scorecard went to Silicon Valley (#1), Washington DC (#2) and San Francisco (#3).
In the report’s Top 10 Most Concentrated Millennial Markets–those markets with the highest percentage of people aged 20-29 years old–Boston came in first with 24.9%, a full 2.7% percent over the next best market, Minneapolis, which had 22.2%. This 2.7% differential between Boston and the next strongest market is larger than the percentage gap between any of the other markets, exhibiting even further how strong the city is in this category. Other cities on the list included Seattle (#8) and Washington DC (#9).
Click the link below to read the full report and see how New England stacks up in other categories such as Top 10 Markets for Educational Attainment and Millennial Population Change by Market.
To view the interactive report, please visit www.cbre.com/techtalent2015