Even with its reputation as one of the centers of innovation and skilled talent in the country, the San Francisco’s skyrocketing housing costs and ultra-high cost of living has driven some companies to reconsider setting up shop in the region, or expand outside to other commercial centers.
LinkedIn released a report on San Francisco’s workforce that revealed where exactly these workers were headed off too based on changing their profile location information.
The top three cities that San Francisco has lost workers to are Portland, Seattle and Austin, respectively. Out of every ten thousand San Francisco workers, Portland has poached 4.4, Seattle has taken 4.3 and Austin has attracted 1.7 employees. To some, even top-level executives, the Bay Area has simply gotten too expensive.
Other top cities taking San Francisco’s workers according to the report include Denver, Las Vegas and Sacramento.
Some examples of companies looking towards greener – and cheaper – pastures include San Francisco-based companies like Weebly, who opened a satellite office in Phoenix and Gusto, which opened up a Denver office. Even financial services giant Charles Schwab, who recently extended a lease in San Francisco at for another 10 years, has shifted thousands of jobs out to cities like Austin and Denver.
Some cities and states have included sweeteners like tax incentives to lure companies out of the Bay Area bubble.
Driven by increasing headaches caused by traffic and housing costs, workers are fleeing the region as well. One company has even started to offer $10,000 bonuses to workers willing to leave the Bay Area. A Bay Area council poll done last year found that more than a third of the region’s residents were planning on moving.
But it’s not all bad news. With its ample job opportunities and great weather, the San Francisco Bay Area still remains an attractive destination to big Eastern cities like New York, Boston and Chicago, which were the three cities the region gained the most workers from.
Looking at the bigger picture, hiring in the Bay Area for February was down 5.6 percent year-over-year, but seasonally adjusted hiring increased by 13.3 percent from January.
The LinkedIn report also identified a skills gap among San Francisco’s workforce in certain areas.
While the region scored well in software oriented skills like Perl, Cloud Computing and Mobile development, there was a lack of available talent with expertise in areas like Healthcare Management, Education and Teaching and Nursing.
Article and image provided by: Sacramento Business Journal