http://paloaltoonline.com/print/story/print/2013/02/08/valley-job-growth-biggest-since-dot-com-boom


Palo Alto Weekly

News - February 8, 2013

Valley job growth biggest since 'dot-com' boom

Technology recovery propels 'prodigious growth,' says yearly economic, social index

by Chris Kenrick

Last year's rebound in technology added the highest number of jobs to the Bay Area since the dot-com boom of the late 1990s, according to a report released Tuesday, Feb. 5.

Silicon Valley employment grew by 3.6 percent in 2012, more than double the rate of job growth in the United States and outpacing the rest of the Bay Area, according to the 2013 Silicon Valley Index, a summary of economic and social indicators produced by the Silicon Valley Community Foundation in Mountain View and the nonprofit Joint Venture Silicon Valley in San Jose.

The Bay Area added 92,000 jobs in 2012, 42,000 of them in Silicon Valley, defined as Santa Clara and San Mateo counties, plus Fremont, Newark, Union City and Scotts Valley. San Francisco added 18,000 jobs in the same period.

"Silicon Valley is the first to emerge from the recession nationally, and we're leading some pretty prodigious growth for the nation," said Joint Venture CEO Russell Hancock in the group's 16th annual index.

However, the local numbers continue to reflect a shrinking middle class, Hancock said. For the third year in a row, per capita income rose while median income fell.

"There are a lot of millionaires and billionaires and that raises our averages (reflected in per capita income)," he said.

"For decades, the Valley's most striking feature was a robust middle class and now we've become the classic hourglass economy."

While households earning more than $100,000 grew by 1 percent to account for 43 percent of the total, those earning less than $35,000 rose by 2 percent, accounting for 20 percent, according to the index.

Food Stamp participation climbed to 5 percent in Silicon Valley but remained far below the more than 10 percent participation in California and 15 percent nationwide.

Driving Silicon Valley's growth in the last year were jobs in software, cloud computing, social media, Internet and information services and mobile-device applications, Hancock said.

Hardware was flat. Research and development grew by 14.5 percent and the overall prosperity boosted jobs in law, accounting and even nonprofits, which were up by 3.3 percent, the index stated.

Productivity in the Valley at $157,100 per employee also led the nation and has grown every year since 2008.

Total Silicon Valley patent registrations ticked up, though they represented a smaller portion of total statewide patents because of the rise of patents in other areas such as San Diego.

In a reversal from the previous year, the number of new firms opening spiked to 46,000, while 12,000 closed, Hancock said. There also was a 10 percent growth in sole proprietorships firms with no employees, just a single principal.

Silicon Valley venture-capital investment declined, while San Francisco investment expanded, Hancock said.

These and other factors led Hancock and Silicon Valley Community Foundation CEO Emmett Carson to conclude that Silicon Valley should be redefined to include San Francisco.

"Today the case is that we're seeing a regional economy that's being created," said Carson. He added that regional not just local solutions are urgently needed if the Bay Area's 101 cities and towns are to effectively address pressing issues of traffic, housing and preparation for climate change.

Staff Writer Chris Kenrick can be emailed at ckenrick@paweekly.com.

Comments

Posted by Resident, a resident of Another Palo Alto neighborhood
on Feb 5, 2013 at 6:40 pm

Just watched a report on this on channel 7 news.

What I found interesting was the fact that traffic problems are being made worse by the number of transit agencies in the Bay Area. The fact that for a completely public transit commute it often involves one person needing to change agencies several times. This makes for a difficult commute and streamlining the process will involve getting rid of these separate agencies and coordinating the system.

At last. This is so obvious to me. I hope that progress is moved on this idea as soon as possible, for all our sakes.


Posted by commuter, a resident of South of Midtown
on Feb 6, 2013 at 12:03 pm

The problem with public transit connections in Silicon Valley is that the bus routes are too long and infrequent. That makes it really hard to sync schedules with the trains. We need shorter, more frequent bus routes that loop from the train stations through the neighborhoods and business areas. In San Francisco, buses often run every 5 or 10 minutes during the day and the buses are still full. Here in Palo Alto, most routes only see one bus every hour, so only hard core users take them seriously.


Posted by moo, a resident of Another Palo Alto neighborhood
on Feb 6, 2013 at 9:40 pm

An open letter to the Great State of Oregon,

That sign you apocryphally had at our mutual border on northbound I-5?

Now that the 1980s are over and you've taken it down, may we please have it?

With a bit of paint, it will be perfect. WELCOME TO SILICON VALLEY. NOW GO HOME.