Silicon Valley: 'We See No Evidence That The Recovery Has Arrived.'
“We show no evidence that the recovery has arrived,” concluded Russell Hancock, chief executive of Joint Venture, following an in-depth analysis into the current economic conditions at Silicon Valley. Looking at the above facts and figures, it's difficult not to agree with him.
According to the '2010 Index Of Silicon Valley' produced by Joint Venture: Silicon Valley Network and the Silicon Valley Community Foundation; Silicon Valley has cut 90,000 jobs from the second quarter of 2008, to the second quarter of 2009. This puts Silicon Valley unemployment levels at the lowest since 2005 – and then the IT world was still in recovery from the dot-com crisis.
Unemployment is currently at its worst in mid-level jobs, such as engineers. Patent registrations also took a downturn in 2008. The number of initial public offerings of stock in technology companies have dropped to the lowest levels since the 1970s. There is also a worrying trend in falling immigration levels in the Silicon Valley region. Levels dropped by 34 percent over the last year and, with a considerable percentage of its current engineers coming from abroad, this could be a ticking time-bomb for some of the IT world's biggest movers and shakers.
There are a few encouraging signs in the area of green technology. Silicon Valley patent registrations in this sector have increased 7 percent from 2006 to 2008. Green jobs increased by 24 percent from 2004 to 2008 – hinting that a greener Silicon Valley, might be the way forward in this ongoing economic crisis. But, if this stark report is to be believed, then the economy isn't about to recover anytime soon.