TECNA report finds most tech jobs still being created in tech hubs, with some rapid growth in new, smaller locations while remote jobs grew by more than 400%.

There has been much ado that the Covid-19 pandemic caused workers to leave traditional tech hubs like Austin, Texas; Boston; and Seattle in droves, radically and irrevocably shifting the industry landscape. Until recently, there was no compelling demographic or economic data to support or refute this thesis about the so-called “demise” of America’s tech hubs—it was fueled by speculation and a handful of non-statistically significant anecdotes.

In May 2022, the Technology Councils of North America (TECNA) completed a study with data research firm eIMPACT to explore whether or not the hyperbole had any basis in fact. The report looked at data on the nationwide migration of tech workers and jobs since the pandemic. In other words, where are tech jobs being created, and what portion of those jobs are being performed in the locations in which they were created?

The TECNA study produced some interesting revelations:

1. A large majority of tech jobs are still being created in the traditional tech hubs, albeit at a slower rate than before the pandemic.
2. Those tech hubs are also still recruiting and developing tech talent.
3. Tech jobs are being created at a lightning pace in new, smaller locations where no one would have expected there to be tech job growth, such as Tennessee and Arkansas.
4. The remote job growth rate in tech is astronomical—it’s over 400% higher than pre-pandemic levels. And growing. 

So, what does all this mean for the tech industry and job creation going forward? One, there is no evidence that tech hubs are losing talent. It simply isn’t true. Two, there is a mountain of evidence that shows that the shift to remote work is accelerating. Therefore, the cities and towns that currently have or choose to invest in local tech talent will see a substantial increase in economic benefit from jobs that are now being created in one location and being performed remotely in another.   

‘Work from anywhere’ is becoming the norm

The TECNA report findings on the pace of remote job growth may appear to be a sea change for our industry. However, the reality is, this shift had already started at a slower pace before the pandemic. Tools like Skype, Slack, and Zoom were created in support of the idea that a larger percentage of the workforce would eventually move to some form of a remote model. 

Despite lingering logistical limitations such as working across multiple time zones, the pandemic taught us that having a remote workforce is not only possible, it can work really well. The data makes clear that “work from anywhere” is now becoming the norm rather than the exception.

A remote workforce positively impacts local economies

Most of the tech jobs are still being created in the current tech hubs. The difference is, more of those jobs are now remote, which means anyone from any part of the country can be recruited to do the job. For instance, Amazon is still creating jobs at its headquarters in Seattle. However, some of these jobs no longer require a new employee to relocate to Seattle. They can stay where they live, whether that be in San Francisco, Atlanta, or Bellingham, and accept a job with Amazon that was created in Seattle.

This has enormous economic implications. Historically, tech companies have made a big impact in tech hub cities, because employees who lived there were earning outsized incomes, which they shared into the local economy by purchasing homes, dining at restaurants, shopping, buying services, donating to local charities, etc. Seattle is one such city that has long benefited from this positive economic impact.

As more local jobs are filled by people who live elsewhere, however, the discretionary income impact shifts away from the tech hub. This is good for the cities where the remote employees are located, because those municipalities experience a boost to their local economies. 

In the near term, the “winners” will be cities that have local tech talent. Cities that have university or college systems or local corporate training programs would do well to invest public funds to accelerate the development of tech talent. Even if the jobs are being created elsewhere, the greater the presence of tech talent in a city, the higher the likelihood that that city will enjoy the economic lift from the higher wages earned by those tech employees.There is more incentive than ever for locales that aren’t considered tech hubs to develop or recruit more local tech talent. The notion of tech hub isn’t defined by the companies creating jobs. It’s defined by the density of tech talent. Those two economic drivers are now more independent than ever.

Bottom line

Policymakers should invest in local public education, boot camps, and adult reskilling programs such as Apprenti to ensure that they develop the talent needed and reap the economic benefit from that talent pool.

Industry leaders will hunt for remote talent pools. Demand for tech talent still exceeds supply by far, which makes remote work essential to compete.

For more data and insights on these trends and how remote work is evolving in the tech industry, read the full TECNA report.