Unemployment in the Valley is now higher than it was after the dotcom bust.
The job market is so bad that some folks are giving up, quitting the tech industry, and going into healthcare (and green-tech, which isn’t exactly thriving right now, either).
Desperately awaiting the next big tech boom…
Pui-Wing Tam, Wall Street Journal: For much of last year, unemployment in Silicon Valley remained under control as the tech industry initially held up in the downturn. But by late last year, tech spending had weakened, and companies such as eBay Inc. were announcing layoffs.
As a result, Silicon Valley’s unemployment rate — which was below California’s average and largely tracked the national average last year — has soared, surpassing the state average in May. By June, the area’s unadjusted unemployment rate was 11.8%, worse than California’s 11.6% and the national rate of 9.7%, according to the latest figures from California’s Employment Development Department. The rate of job losses was particularly steep in sectors such as semiconductor manufacturing, where employment dropped more than 13% in June from a year earlier.
Only a few segments of Silicon Valley’s economy are now showing growth. Employment in the local health-care sector rose 4.2% in June from a year ago, according to the EDD. The clean-technology industry — which covers energy efficiency and alternative energy, such as solar and wind power — is also still attracting investment, pulling in $1.2 billion in venture-capital funding in the second quarter.
Read the whole thing >
Chart: The Wall Street Journal
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