Tech counties boomed in pandemic, new data shows - GoDanRiver.com

The pandemic was an economical boon for the nation’s tech centers past year, but the tide already has turned arsenic consumers’ request for distant enactment software, delivered nutrient and streaming amusement subsides.

Tech-driven counties successful California’s Silicon Valley and astir Seattle, Washington, and Austin, Texas, boomed arsenic the COVID-19 pandemic raged, according to a Stateline investigation of caller information connected economical output released this period by the national Bureau of Economic Analysis.

The investigation of 2019-2021 changes successful county-by-county gross home merchandise (GDP) shows however section economies fared successful the aboriginal months of the pandemic, an indicator of however Americans responded astatine a clip erstwhile galore were staying location and proviso concatenation problems interrupted immoderate user buying.

“When the pandemic came along, we each thought it was going to beryllium a crippling stroke to our economy, but we were wrong. It was a bonanza,” said Russell Hancock, CEO of Joint Venture Silicon Valley, a private-public economical improvement radical based successful Santa Clara County.

Remote enactment fed request for Apple devices and online-based services specified arsenic Zoom, DoorDash and Netflix, each based successful Silicon Valley, helium said. The latest twelvemonth has not gone arsenic good for tech firms successful the pandemic roar towns.

“It was a spike, and it came backmost down. We’re adjusting,” Hancock said.

Santa Clara County saw the biggest bump successful existent GDP for a ample region betwixt 2019 and 2021, up 19%. Austin’s Travis County grew 14%, and Seattle’s King County grew 13%. Real GDP measures economical output arsenic the full worth of goods and services produced successful the county, adjusted for inflation.

Other counties with populations of astatine slightest a cardinal radical and with fast-growing economies from 2019 to 2021 were mostly successful the Sun Belt, wherever jobs and colonisation boomed: Collin County, Texas (up 12%); Palm Beach County, Florida, and Mecklenburg County, North Carolina (both up 9%); and the trio of Salt Lake County, Utah, Hillsborough County, Florida, and Maricopa County, Arizona (all up 8%).

In Washington state, King County bundle plan astatine companies specified arsenic Microsoft and online income from Amazon helped the region roar despise occupation losses successful tourism and manufacturing, said David Reich, main economist for the county’s Office of Economic and Financial Analysis.

“The (tech) assemblage was truly important successful providing the tools we needed during the pandemic, adjacent if astir of those workers were moving remotely,” Reich said, adding that tech provided 85% of the county’s boost successful GDP.

In Texas, the Austin country hosts tech companies specified arsenic Dell and Oracle.

Many of the blistery tech economies person cooled this year. King County’s latest economical indicators, compiled by Reich, amusement past year’s spike dropping backmost to 2019 levels this year. Tech employment has fallen arsenic large tech firms specified arsenic Microsoft and Amazon and online real-estate firms similar Redfin and Zillow person announced layoffs, Reich said.

But overall, jobs are up successful the Seattle country arsenic tourism returns, drafting much cruise ships and edifice stays. That bodes good for continued, if slower, betterment this twelvemonth and successful 2023, according to King County’s latest projections.

The aforesaid patterns clasp existent successful different areas, said Adam Kamins, elder manager astatine Moody’s Analytics.

“Runaway maturation successful tech-dependent counties has apt cooled considerably successful 2022,” Kamins said. Tech companies successful Silicon Valley and Seattle are considering much layoffs, and much offices successful Austin are becoming vacant owed to layoffs and hiring freezes.

The biggest GDP nonaccomplishment from 2019 to 2021, 6%, besides was successful California, successful Contra Costa County, eastbound of Oakland, wherever much accepted manufacturing did not fare good successful the pandemic.

Marathon Oil shuttered a refinery successful Contra Costa County, laying disconnected much than 700 workers, and shaper Posco successful Pittsburg, a Contra Costa County city, laid disconnected 216 workers successful 2020.

“Throughout the pandemic, moving radical mislaid truthful overmuch portion a prime fewer saw grounds profits,” said Joshua Anijar, manager of the Contra Costa Central Labor Council, a national group. Tech workers person started moving successful arsenic lodging prices spiral successful the San Francisco Bay Area, but the area’s manufacturing bequest is disappearing. Today, the Posco works is preparing to unopen down, helium said.

“We don’t cognize if we’re going to proceed to beryllium an concern region oregon conscionable different suburb of Oakland and San Francisco,” Anijar said. “We’re lone present starting to spot the afloat effects of the pandemic. At first, we saw the tourism areas suffering, but that’s not us.”

Tourism centers successful Hawaii and Nevada besides saw losses arsenic travelers stayed adjacent to home.

Honolulu mislaid 5% of GDP from 2019 to 2021 arsenic tourism and normal concern had not bounced back. This year, visitant arrivals and spending are up successful Hawaii, according to a November authorities report, and are adjacent to recovering to 2019 levels.

Other counties losing GDP were Queens, New York, (down 4%) and the Bronx (down 2%) wherever services and hospitality specified arsenic restaurants had not recovered. Harris County, Texas, wherever Houston is located, mislaid 1% betwixt 2019 and 2021 with vigor the main culprit, earlier lipid prices spiked this year.

Clark County, Nevada, location of Las Vegas, and Philadelphia County, Pennsylvania, besides had 1% drops.