Bloomberg’s Betty Liu reports that every tech job created in 2011 spurred 4.3 additional new hires. This massive multiplier effect for high tech jobs has been a boon during the continued U.S. economic recovery.
Lawyers, dentists, and school teachers see increased job opportunities in the wake of high tech hiring, according to Liu.
Ian Hathaway, Bay Area Council Economist, explains the two reasons behind this multiplier effect:
“High tech workers earn high salaries and therefore have higher levels of disposable income which can be spent throughout the local economy; and secondly, because high tech firms tend to cluster around one another, it draws in businesses that support high tech in their normal business operations.”
Hathaway added that he expects job growth in the high tech sector to outpace national job growth until at least 2020.
Watch the full video below, from Bloomberg TV: