While Silicon Valley seems to have been recovering steadily from the effects of the economic downturn, some worry the area may be in for a “double dip” as the region saw an unexpected drop in job creation in May.
According to the Bureau of Labor Statistics (BLS), only 54,000 new jobs were added last month, which is the lowest number of jobs Silicon Valley has seen created over the past eight months of recovery. After steady gains in the first few months of 2011, financial analysts had been expecting around double that number, causing fear that the region could be in for another rough patch.
Then again, the disappointing preliminary results for job growth in May could end up being a mere blip on the path to economic recovery, especially as the tech industry continues to boom in the Valley. Indeed, according to officials, the Bay area has a greater amount of jobs available with venture-backed startups than the total available in all other US cities combined. The number of jobs with startup companies has also been reported to have doubled compared to pre-recession days.
The South Bay od the Valley, where most of the tech related jobs are based, continued to fare much better than its neighbors in the East Bay or the San Francisco-San Mateo-Marin region.
During the first four months of 2011, the South Bay produced 11,500 jobs, the East Bay 1,200 and the San Francisco-San Mateo-Marin region 1,300.
BLS figures show that the Bay Area has added 14,200 payroll jobs thus far in 2011, if looking at the seasonally adjusted numbers. Without the adjustment, the Bay Area appears to have seen a slight dip in job creation.
Salaries in the area remain the highest on the West Coast, according to BLS, with average salaries in Silicon Valley purported to be $66,780, while San Francisco salary averages hover around $61,940 and Oakland-Fremont-Hayward salaries remain the lowest in the region at $54,590.
While some feel optimistic about the Valley’s job prospects and expect it to get back to peak employment levels in about two years, others have expressed concern that the area could be about to enter another dip owing to fears over the revolutions in the Middle East impacting oil prices, and the Earthquake/Tsunami in Japan which affected manufacturing yields and impacted supply in the tech sector.
