Finance Knuggets
Oct 20, 2025
I recently learned about the state of tech jobs in California, specifically in Silicon Valley. Despite the AI boom driving significant investments in the tech industry, there has been a noticeable decline in employment in the region. Tech job growth has slowed down, with over 90,000 jobs lost since its peak in 2023. Unemployment rates for computer and math-related occupations have also increased, pointing to a challenging job market in the tech sector.
The slowdown in tech job growth is impacting California as a whole, with the state’s share of US tech employment decreasing. Although high-paying tech jobs remain in the state, the high cost of living and inadequate infrastructure investment are pushing tech jobs to states like Florida, Texas, and Washington. This shift is affecting California’s economy and overall job market.
Despite the recent rebound in tech stocks and declining interest rates, tech job growth has not returned to pre-pandemic levels. California’s economy is growing at a slower pace, and the state is no longer leading in GDP growth. The effects of the AI boom on tech industry employment are uncertain, as AI deployment may lead to job displacement in certain areas of the tech sector.
In conclusion, California’s tech industry is facing challenges with job losses and a shifting job market. However, there have been some positive developments, such as the passing of a bill to increase housing construction near transit stops. These efforts could help address the state’s housing shortage and slow down the rate of tech job losses. It will be important to monitor how the tech industry evolves in response to technological advancements and the impact of AI on job market dynamics.
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