Silicon Valley in Transition: Challenges and Opportunities for the Tech Workforce

By Luther Jackson, NOVA Economic Stimulus Manager

NOVA Workforce Board, serving the heart of Silicon Valley, released a comprehensive report in July on the viability of the region’s crucial technology sector. The key finding of this eight-month study is an anticipated 15 percent increase in hiring over the next two years within the local technology industries.

The report, “Silicon Valley in Transition,” summarizes extensive research consisting of résumé panels with 27 corporate hiring representatives, 53 executive-level interviews, and in-depth surveys of more than 250 companies representing a diverse cross section of regional employers within the Information and Communications Technologies (ICT) industry sector (i.e., software, networking, telecommunications, programming, and information systems).

In addition to the projected increase in hiring, the study found that 60 percent of the region’s ICT companies anticipate having more full- and part-time employees by mid-2012, with an estimated 11 percent increase in software engineers, 12 percent growth in quality assurance staff, and 20 percent increase in applications engineering positions.

Not all of the news is positive; however, as the report identifies a talent gap within the ICT industries that will affect job seekers and employers alike. This gap results from a shortage of individuals with higher degrees and the cutting-edge skills that are most in demand, even while mid-level jobs are being eliminated, outsourced, or off-shored.

Kris Stadelman, NOVA’s director, summarized the findings: “The good news is that we’re going to continue to grow in terms of ideas and employment. The downside is that companies are trying to shed the jobs in the middle and focus on the jobs at the top.” Stadelman emphasizes that retraining is key to accessing these opportunities for individuals seeking employment.

The authors of the report suggest policy changes to ensure that Silicon Valley maintains its international competitive edge, including strengthening K–12 education, and identifying ways to increase the number of individuals graduating from higher education with degrees in science, technology, engineering, and mathematics.

In addition to an appeal to policy makers, the report also provides relevant information to local workforce investment boards and the staff who interact with job seekers. Within today’s changing workforce environment, the study recommends providing high-tech job seekers with demonstration opportunities to display tangible skill sets. Flexibility training, focusing on problem solving and entrepreneurial skills, is also encouraged, given the region’s emphasis on innovation.

Finally, strengthening ties to local employers is strongly recommended, given that the majority of employers interviewed for the study had limited understanding of the workforce development system and undervalued the work of local workforce boards.
The full report and a summary of the employer résumé panels are accessible online at www.novaworks.org/LMI.aspx.

This project was overseen by a collaboration of the four workforce investment boards serving San Mateo, Santa Clara, and Santa Cruz counties within Northern California. The study was conducted by a partnership led by BW Research Partnership and the Center for Continuing Study of the California Economy, and was funded by the U.S. Department of Labor with a grant made available through the American Recovery and Reinvestment Act (ARRA).