Technology has a far wider reach than what we already see; it has power beyond that of the products we carry in our pockets and use “in the cloud”. According to new research by economist Enrico Moretti, every new technology job in a city creates five additional local jobs outside the tech sector. His analysis of 11 million U.S. workers in 320 metropolitan areas shows that with each new tech job, two positions in professional work such as medicine and law, and three others in non-professional occupations like hospitality and commerce, are supported over time.
This multiplier effect is particularly large for high-tech jobs so here in San Francisco we can thank all those software engineers at Twitter and Pinterest for indirectly supporting many more jobs that might not otherwise exist. What kind of jobs? Everything from caterers to designers as one
Michael Kors Purses tech-founder explains: “We have accountants, we have lawyers, all in the local area. We outsource all of it. We also hire designers on a contract basis to do specific things for us.”
We wouldn’t be the first to say that high-tech jobs are
Michael Kors Diaper transforming the U.S. economy. Startup community advocacy group Engine Advocacy, in collaboration with the Bay Area Economic Council, has produced a compelling report on this topic. Central to their research is a new, broader definition of the “high-tech sector” as “the group of industries with very high shares of technology oriented workers” which includes not only software engineers and Silicon Valley types, but also workers in communications, electronics, scientific research and development, engineering services, and medical and aerospace manufacturing.
We spoke with?Michael?McGeary, Co-Founder and Director of?Engine Advocacy, who said he hopes those who are in charge of resource deployment in local government take a look at these numbers and how they can help their cities going forward,?especially?when it comes to supporting innovative entrepreneurs since strengthening a startup community can lead to growth which builds on itself in a decentralized way.
For a closer look at these effects, take a peak at some of Engine’s findings including recent changes, and forthcoming projections in employment trends:
Employment in high-tech industries has grown three times faster than in the private sector as a whole since early 2004. The sector also performed better during the recent recession, and recovery period in the past year.
Western, Mid-Atlantic and some Northeastern states had the highest concentrations
of high-tech employment in 2011. Washington was the highest at 11.4 percent. During this time, the high-tech employment concentration of the entire country was 5.6 percent.
Between 2002 and 2011, employment in STEM occupations grew 16.2 percent, while employment across the economy grew by only 0.6 percent. Over the last decade, employment growth in STEM has outpaced job gains across all occupations by a ratio of 27 to 1.
Ok so we’ve seen the numbers, and can’t deny economic benefits of the multiplier effect, but how can we fill more STEM jobs?
Even if we train more people it won’t be an easy task to fill vacant positions. Why? Because “hiring is dead”, according to?42Floors Co-founder Jason Freedman. He’s not alone in his belief that there is a war for talent and that “if you’re looking to hire the kind of talent that is out there, actually building products, companies, etc. those men and women likely aren’t filling out job applications. So if you want them, you have to court them.”
We have to think about new ways of recruiting, hiring, and “courting” talent to go along with the new emerging methods for fostering and building talent. Take Dev Bootcamp for example a 10-week program designed for beginners to learn Ruby on Rails through 400+ hours of technical training. By the end of the
Michael Kors Crossbo program, participants are job-ready and so far, 88 percent of the program’s graduates have received job offers with an average salary of $79,000.
For each hire, Dev Bootcamp receives a finder’s fee, which goes back into the program, and the company reimburses the newly employed student with $5000-worth of their total tuition. What Dev Boot does right is focus on employability. Education-Tech expert, Michael Staton calls this approach: “Extreme Employability”, rooted in three fundamental tenets: 1) aligning the curriculum and incentives with job outcomes, 2) simulating real workplaces, and 3) actively placing graduates in jobs that befit their training. At the completion of the program, Dev Bootcamp puts on a “Hiring Day” where participants meet with potential employers in a
Michael Kors Python “speed-dating” format. So far it’s been an “interview extravaganza where the turnout has roughly as many
Michael Kors Purse O companies hungry for new talent as students”, says TechCrunch.
Alternative education models driven by “extreme employability” may be one way to start revving up STEM training and hiring. Apprenticeship programs are another option. As the Huffington Post recently covered: The “age-old doorway into skilled trades and a middle-class life” is making a comeback in places like Washington where a state-funded partnership among community colleges,
Michael Kors Bags Sa industry and the International Association of Machinists and Aerospace Workers, is training workers needed by Boeing and the aerospace industry in Seattle to help build a $4 billion replacement for the floating 520 Bridge over Lake Washington.
“If apprentices.. work as machinists for a while but then decide they want to go into engineeringthey now have the opportunity to do that without starting from square zero, says Laura Hopkins, the programs executive director.
Programs like this, along with the outstanding results of multiplier effect, give us hope that with new and creative approaches to education, training and recruiting, we can open up new channels of employment.
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