[Joe Wilkins in Futurism]

The job market in the tech industry has been brutal for a little while now, and doesn't show signs of getting easier.

"Of all the workers devastated by the carnage, former tech workers in Silicon Valley are having a particularly rough go of it.

The region's former software engineers and developers — whose jobs were previously thought to be ironclad — are now having to contend with a fiercely competitive job market in one of the most expensive housing markets in the world."

Silicon Valley - which, here as in a lot of places, is incorrectly used to mean the San Francisco Bay Area - is in a bit of a pickle. Mass layoffs have driven down salaries, so many tech companies are quietly firing swathes of workers and re-hiring those seats in order to lower their costs. That's before you get to the actual downsizing, which has sometimes been significant.

And at the same time, living costs are sky-high, and house prices are all but unobtainable. When so many peoples' wealth is tied to the equity in their home, there are two possible outcomes: a significant drop in wealth as prices decline (particularly as fired employees flee for more affordable climes), or a significant increase in inequality as prices continue to climb. Either way, that doesn't look good.

That's a societal problem, but it's also a problem for the tech industry. Who can afford to found a startup when base prices are so high? The demographics of founders are narrowing to the already well off, forcing other founders to look elsewhere.

The solution will have to involve more help (potentially including more startup funding for a wider set of founders) or better jobs in the area. Otherwise Silicon Valley will continue to lose talent to other parts of the country and the world. Tech companies are trying to get their employees to return to the office to counteract this effect, but it simply won't be enough; no RTO policy is compelling enough when you can't afford to buy a house and bring up a family.

That's an opportunity for other ecosystems, but it's one that they will need to intentionally pick up. To date, smart tech ecosystem strategies in other parts of the world have been few and far between - not least because they aim for a similar level of talent density as Silicon Valley rather than embracing a remote, distributed culture.

I openly miss living in the Bay Area and may return in the future, so I have skin in the game. I'm curious to see what happens here.

#Technology

[Link]