Life in the Valley Economy 2010 - Working Partnerships USA

making a living
Indicator 1
Employment & Wages
KEY STATISTICS
• Silicon Valley lost 84,500 jobs in the recent recession, as local unemployment
reached a 60-year high.
• Employment is not projected to regain its 2008 pre-recession level until Q2 of
2013.
• Net job growth over the past ten years was sharply negative. In a decade bookended
by two recessions with only weak job growth in between, Silicon Valley
lost a net 164,700 jobs, for an annual average employment growth of negative
1.8%.
• Nine of Silicon Valley’s ten industry sectors lost jobs during the recession; the
worst losses were in construction, which saw 35% of jobs disappear.
• Economic growth has become increasingly decoupled from job growth; between
1986 and 2008, the Silicon Valley economy grew by 88%, but employment
grew by just 19%.
• An estimated 32% of all employed workers are paid $15/hr or less, putting
them below the minimum earnings needed to meet the basic standard for selfsufficiency.
WHY IT MATTERS
The large majority of Silicon Valley families
depend on work as their primary source
of income; more than any other factor, the
strength of the job market and of wage levels is central
to determining households’ financial well-being. The
worst U.S. recession in seven decades has taken its toll
on Silicon Valley.
What’s next Projections for employment and wage
growth in Silicon Valley are not encouraging. Even
after emerging from the recession, the region may face
another jobless or near jobless recovery, solidifying the
trend begun in the mid-2000s of economic expansion
decoupled from substantial job growth.
Projections are not destiny – they are extrapolations
from current conditions. Employment projections for
the Valley make clear that the status quo, as defined
by current public policy and existing market forces, is
unlikely to push the economy back on track towards
shared prosperity. New ideas and collaborations will
be needed to rebuild an economy strong enough to
generate the jobs and incomes needed to maintain a
strong middle class.
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