Tech Hubs See a Sharper Slowdown in Job Growth Driven by AI, Overhiring
As some tech hubs are posting job growth, several saw employment gains slow or even turn to losses, according to RealPage’s monthly employment analysis. Slowing tech sector job growth is due to a correction for pandemic-era overhiring, general economic uncertainty and the impact of artificial intelligence, said the report.
The San Francisco Bay Area lost 12,600 jobs annually in August, and Denver’s job market turned negative with 3,800 jobs lost for the year. Meanwhile, some tech markets saw employment gains increase year-over-year in August, including Boston and Salt Lake City, which combined to add 26,000 more jobs than during the same period in the previous year.
Markets that continued to post positive job growth, although at a much weaker rate than the year prior, include Atlanta, Dallas, Austin, Seattle and Raleigh/Durham. These tech hubs created 100,000 fewer jobs this year than they did the year prior. Dallas, Seattle and Austin were each among the top 10 markets for job growth as recently as January, but Dallas fell to 26th in August, while Seattle ranked 28th and Austin dropped to 30th.
The top 10 regions added a total of 389,400 jobs for the year ending August, a 28% increase from last August but 71,000 less than the month prior.
New York continued to lead the nation in growth with 113,400 jobs added in the year ended in August, Philadelphia came in second with nearly 58,000, and Phoenix moved from the No. 7 spot in July to third on the list in August with nearly 36,000. Charlotte, Los Angeles, Houston, Chicago and San Antonio remained in the top 10 job growth markets from July to August. Orlando and Detroit dropped out of the top 10 and were replaced by Pittsburgh and Salt Lake City.
The next 10 markets added 156,000 jobs, a year-over-year decrease of 8.3%. Several Midwest or Northeast markets experienced job cuts, including Washington, D.C., St. Louis, Milwaukee, Madison, Atlantic City, Kansas City and Des Moines.
Nine of the top 10 markets for annual percentage change in employment in July returned to the top 10 in August. These markets are typically smaller and include college towns, state capitals and tourist destinations.
Myrtle Beach remained in the top spot on this month’s list with a slight decrease in its percentage growth of 10 basis points. The college towns of College Station, Texas; Columbia, South Carolina; Fayetteville, Arkansas; Boise, Idaho; and Greenville/Spartanburg, South Carolina remained among the top job growth markets as did state capitals Salem, Oregon and Manchester-Nashua/Concord, New Hampshire. With the addition of Charleston and Charlotte, the Carolinas represented half of this month’s top 10 job growth markets, noted RealPage.
Source: GlobeSt/ALM