After several years of a tremendous tech boom, the job growth rate in the Bay Area tech industry dipped sharply in 2016 compared with 2015. The dip accompanies hundreds of expected layoffs by technology companies in the next year.
An analysis done by Beacon Economics showed that the Bay Area only added 26,700 tech jobs in 2016, for a 3.5 percent growth rate, compared with a 6 percent growth rate in 2015. The growth rate in San Francisco-San Mateo specifically was 3.1 percent. In addition, several tech companies such as Visa, NetApp, and Google said that they would lay off workers in 2017, and tech sector analyst Rob Enderle said that some companies have business models that aren’t working very well and have to change their skills mix.
The tech sector still remains the Bay Area’s strongest-performing sector; jobs overall only grew by 2.6 percent in 2016. Furthermore, a cooling in tech job growth could have a silver lining as it could also indicate a cooling in the Bay Area’s cost of living and real estate prices, both of which have been notoriously high.
Read more: San Francisco Business Times Here’s why the growth of tech jobs has slowed rapidly in the Bay Area