It’s no secret that jobs at Silicon Valley tech companies like Google, Apple and Facebook are the most sought-after roles. The most in-demand employee at a majority of these tech giants? Software engineer.
Although Silicon Valley has long been the ideal destination to land a role in tech, new research released by jobs and recruiting website Glassdoor shows tech jobs are booming in other cities and sectors.
Glassdoor’s chief economist Andrew Chamberlain analyzed all unique job listings (based in the United States) with the word “software” in the title — such as software developer and software engineer — available on the website on June 1, 2012. He performed the same analysis for listings on June 1, 2017.
As all industries incorporate software, automation and data to become more appealing to consumers, there are two reasons why Silicon Valley no longer works to launch your career in tech, according to Glassdoor:
Other industries are hiring more than traditional tech companies
Think about your mobile bank app or the different stores you shop on using your phone: Software developers and engineers worked on those apps for companies not traditionally considered part of the tech sector.
Chamberlain found that since 2012, retail, banking/finance and manufacturing have experienced the biggest growth in demand for software-related jobs. He tells CNBC Make It that he was most surprised by the jump in software jobs in retail, driven mostly by Amazon and Walmart.
“This is an indicator of a trend toward industries becoming more technologically savvy,” Chamberlain says.
He adds that banking and finance services is another interesting sector that has had difficulty attracting software engineers and developers. The main reason: They don’t offer the same perks and benefits as large tech companies.
“You can now re-balance your investment portfolio yourself, you can apply for loans and changes in your credit limit in an automated way through self-service portals,” Chamberlain says to CNBC Make It. “Those tools are being built by software engineers and data scientists.”
Tech jobs are opening up around smaller metro areas across the country
Between the five years analyzed, areas such as Seattle, Washington, D.C. and Detroit saw the biggest growth in software-related job postings.
Chamberlain tells Make It there aren’t less software-related roles in Silicon Valley. Rather, growth in those jobs has remained flat while other metro areas have experienced a boom in openings.
Cost of living in traditional tech hubs is also driving the trend of opening new offices in other metro areas, Chamberlain says.
Additionally, he explains that smaller tech hubs like Austin, Texas and Raleigh, North Carolina, are close to universities, which fuel growth of the tech sector.
“Fresh computer science and engineering grads coming out of universities often want to stay close to where they were they were in school and that provides the labor market for employers,” Chamberlain tells CNBC Make It.
Chamberlain highlights that given today’s economy and the low unemployment rate in the U.S., job seekers — especially in the software industry— are in the driver’s seat, as they are attractive to prospective employers.
“You might not end up ever having spent time in Silicon Valley as a young person,” Chamberlain says.
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