A new analysis of workforce data released on Thursday ranked San Francisco fourth among U.S. metropolitan areas for startup activity, up from ninth in 2015. Austin, Miami, and Los Angeles edge San Francisco in the ranking, a product of the report’s inclusion of non-tech small businesses in its examination of recent labor statistics. San Jose fell to eighth on the list, in part because more companies, founders, and venture capitalists have moved from the area to San Francisco.
In the Bay Area, founders and employees from the Millennial age group are increasingly choosing to live in city centers, said Dennis Conaghan, executive director of the San Francisco Center for Economic Development. Incubators have also attracted more startups to San Francisco, he said.
Read more: SFGate San Francisco climbs rankings in startup activity