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Silicon Valley job growth hits dot-com levels, and that has some concerned

February 8, 2013

by : tech.blorge.com – excerpt

Silicon Valley just hit a ominous mark: its job growth has just reached its dot-com levels. The realization came on Tuesday in the form of the 2013 Silicon Valley Index. The take away: things are good if you’re in the tech sector, and only if you’re in the tech sector.

The Bay Area, the index reports, added a 92,000 jobs in 2012 with 46 percent of those jobs — roughly 42,000 according to The Verge – coming from Silicon Valley. The Valley’s job growth rate improved as well: Santa Clara and San Mateo combined job growth increased by 3.6 percent, according to the San Jose Mercury News. San Francisco increased by 3.7 percent as well. For contrast, the state of California averaged 1.7 percent job growth for 2012.

 

But that growth has also spilled over into other sectors, like construction and legal services, according to the report.

So why does this “prodigious” job growth unnerve some? Well, the seemingly limitless growth hasn’t improved the lives of many Bay Area residents, causing uneven income growth, according to Russell Hancock, president of Joint Venture Silicon Valley. The milestone also brings the early 2000s, when the tech bubble burst, back into memory.

Things are especially bad if you belong to either African-American or Latino communities. While Caucasians, Asians, and others groups saw their per-capita income rise, those in the Latino community saw theirs fall by 5 percent. Those in the African-American community saw their income drop by 18 percent from 2009 to 2011.

Mix all that with a noticeably dwindling middle class in the region — households earning over $100,000 grew by one percent in 2012 and households earning less than $35,000 grew by two percent — and you’ve the recipe for worry-wart stew.

“Silicon Valley is two valleys,’ Hancock told San Jose Mercury News. “There is a valley of haves, and a valley of have-nots.”… (more)

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