SoCal Top Growth Market in US for Tech Labor

Southern California is seeing rapid tech job growth. In the past two years, Los Angeles’ tech labor force has grown by 12.3%, the top market in the country for tech job growth, while Orange County’s tech labor force grew by 10.6%, ranked fourth for tech job growth in the country, according to CBRE’s Scoring Tech Talent Report. While the markets saw accelerated tech job growth, San Francisco and Seattle were the top ranking markets for tech labor overall, and markets like Phoenix also saw rapid tech job growth.

“We produce an incredible amount of tech graduates across our local universities and schools. Many of them do want to stay in Southern California to continue to enjoy the lifestyle that was a big draw in the first place,” Jeff Vertun, first vice president at CBRE, tells GlobeSt.com. “That means, companies have an amazing pool of top-notch talent to choose from. In addition, I think L.A.’s tech ecosystem has really matured over the past few years, which has made it very attractive to start-ups and established firms alike. Last but certainly not least, tech companies are increasingly focused on quality video content production, and L.A. is the mecca of creating that as the entertainment capital of the world.”

Tech industries have been important to the economic growth of cities, and Los Angeles universities are nurturing tech talent. The city ranked third in the US for tech degrees, and produced 38,359 tech degree graduates in the past five years. “Tech companies will continue to be a leading driver of growth and their success has a ripple effect on L.A.’s economy,” says Vertun. “It is critical to create an environment that gives tech employees the optimal opportunity to succeed here—that should continue to attract new talent as well, if our weather doesn’t do the trick.”

While the tech industry still has room to grow before it catches up to major hubs, like San Francisco and New York, it is already driving significant office leasing activity. “Tech companies are a leading driver of office demand and experience rapid headcount growth, creating a more competitive market and rising rates,” explains Vertun. “Also, often these tech companies are drawn to evolving new neighborhoods. Just think of Hollywood and look at its metamorphosis in the past 10 to 15 years. Much of that was fueled by rising demand from these types of companies. The Arts District and other parts of Downtown are experiencing similar changes.”

Los Angeles currently has record low unemployment rate at 4%, and unemployment for tech jobs is even lower. So, employment overall is strong, however, tech is seeing the most rapid growth in the market. “Tech job growth is stronger than most other industries,” says Vertun. “The nature of these newer businesses tends to lead to rapid expansion phases—following a funding round or new business partnership, for example—so we see big headcount jumps in this industry frequently. But really, most industries are impacted by tech jobs, as the majority of companies have many tech aspects today, including law and accounting firms, real estate companies, health care and retail. Tech infiltrates everything today, the way we build things, the way we interact, the way we trade, the way we shop and so much more. So, it’s truly rising tides float all ships here.”