Exclusive | Austin’s Reign as a Tech Hub Might Be Coming to an End - WSJ


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Key Findings

A recent report from SignalFire reveals a decline in tech employment in Austin, Texas, after its period of rapid growth. Big Tech employment dropped by 1.6%, while startup employment saw a more significant decrease of 4.9% in 2024. This contrasts with employment growth in coastal cities like New York and San Francisco.

Wider Trend

The trend isn't isolated to Austin. Dallas, Houston, Denver, and Toronto also experienced declines in tech employment during the same period. This suggests a larger shift in the tech industry landscape.

Austin's Decline

Austin's recent downturn signifies a potential shift in the tech industry's geographic concentration. After a period of attracting companies and talent from higher-cost areas, it is now experiencing a reversal of this trend.

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Nearly five years after Austin, Texas, became a darling of the tech industry, luring companies out of California with the promise of lower taxes and a better quality of life, the city is now bleeding tech talent that is flowing back to the coasts.

A new report from venture-capital firm SignalFire shows that in 2024 Big Tech employment declined 1.6% in Austin, and startup employment fell 4.9%. Tech employment in Dallas and Houston also declined, along with cities like Denver and Toronto. Tech employment grew, on the other hand, in New York and San Francisco. 

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