Dive Brief:
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Job seekers in Silicon Valley are more likely to move outside the area for their next opportunity versus job seekers in six other technology hubs, including San Francisco, San Jose, New York, Seattle, Boston and Austin, according to analysis from Indeed.
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Indeed found 38% of tech job seekers in Silicon Valley are actively looking for positions outside of their local metro area. That’s an increase of 67% over the last five years. Los Angeles came in second, with 26% of job seekers looking for their next opportunity outside the city.
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Meanwhile, the number of job seekers looking to leave Austin decreased of 28% over the same period. Average tech salaries, adjusted for the cost of living, are the second highest in the nation in Austin, according to Indeed.
Dive Insight:
The high cost of living in Silicon Valley, the Bay Area and L.A. has a lot to do with the exodus. Austin has a much more reasonable cost of living, so job seekers there tend to look for their next job opportunities locally. Austin consistently ranks high in terms of tech worker salaries and a reasonable cost of living.
But younger workers are more likely to try to stick it out in Silicon Valley, Indeed found. Among 18-24 year olds, Silicon Valley outbound job search stands at 49%. The number jumps to 59% for 45-54 year olds, who may be more interested in saving money and in having a work/life balance.
If the cost of living continues to increase in Silicon Valley and the Bay Area, those areas could eventually see a "brain drain" as tech workers flee to more cost-effective environments.
