NYC vs. Texas? Actually, they’re both top destinations for tech talent right now
NYC vs. Texas? Actually, they’re both top destinations for tech talent right now
A new report from venture firm SignalFire offers clues about where workers are flocking to as they relocate from Silicon Valley.
BY Sam Becker
Hundreds of thousands of tech workers have been culled from payrolls over the past year or so, but several areas around the country remain hubs for tech workers. That includes such cities as Austin, Seattle, and New York City, according to a new report from venture firm SignalFire.
To crunch the data, SignalFire utilized Beacon AI, its in-house AI engine, which tracks and ranks 80 million companies, 600 million people, and millions of open-source projects worldwide. Beacon incorporates 40 datasets, with the resulting proprietary data used to identify new areas or opportunities for investment, Asher Bantock, SignalFire’s head of research, tells Fast Company.
And the data shows that Texas and New York—though two very different locations in most respects—are top destinations for tech workers.
The report finds that Austin is currently the fastest-growing city in the United States in terms of tech talent. The Austin metro area saw head counts at VC-backed startups increase by 23% between 2019 and 2023, followed by Seattle (roughly 20%), and Dallas (19%). At big tech companies, head counts in the Austin area have increased 44% during that same time period; they increased by more than 40% in New York City and in Los Angeles, too.
Leaving Silicon Valley for Silicon Alley?
Looking at tech workers who relocated between 2022 and 2023, SignalFire’s data shows that New York City was, by far, the top destination. On the other side of the coin, San Francisco, Seattle, and Boston saw the most tech workers leave during the same time period.
“By net change as a percentage of all San Francisco Bay Area relocators, the most common move was to NYC, and NYC also received new residents from Seattle and Boston,” the report reads. “What’s clear is that cost of living doesn’t purely incite these moves; NYC is in the midst of a tech talent boom.”
Further, the report notes that there’s been a shift in workers moving to big tech companies from smaller startups. Or at least they were, until recent mass layoffs hit the sector and the reputation for large tech companies being a “safe” career move was dispelled.
“We postulate the trend of startup talent shifting from startups to big tech as a ‘safe move’ is long gone, and VC-funded startups are in a strong position to recruit from this same talent pool,” the report says.
All told, that may be good news for startups looking to get their hooks into talent, and especially good news for startups in Texas and New York.
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