As measured by the fact most large high tech firms are reporting robust revenue growth and impressive earnings, the technology industry in Silicon Valley and the Bay Area is on a roll.
That’s the good news. The bad news is that the high-tech recovery hasn’t had an equivalent effect on the creation of jobs. “The technology industry is growing and diversifying, but the impressive sales output is not the same as jobs,” says Steve Levy, director of the Center for the Continuing Study of the California Economy. “We’ve also had a huge venture capital quarter, but that hasn’t immediately translated into very much hiring.”
Levy adds that “there are other dimensions to growth besides jobs. For the rest of the year, I think we’ll see a slow period – I don’t see a surge coming. Companies are being very careful about hiring and particularly about the skills they are looking for. The bigger companies are getting such good productivity increases and sales increases without much effect on jobs.”
— Doug Bartholomew