Phoenix, often recognized for its growing technology sector, has seen a slight drop in its standing among the top tech talent markets in North America. According to a recent report by CBRE Group Inc., Phoenix fell from 15th to 18th place in the rankings, which assess 50 markets in the United States and Canada on factors like competitive advantages and amenities attractive to both employers and employees in the tech field, as detailed by ABC15.
Despite the slip in rankings, the region's job market shows robust health, with tech jobs in the Valley increasing by 17.2% from 2018 to 2023. Driving the growth are high skilled workers, from software engineers to systems and data managers. However, released on September 4, CBRE's report indicates that the number of technology-related graduates in Phoenix has outpaced the job growth during that period, raising questions about underutilized local human capital.
The tech workforce in Phoenix grew to 108,380 jobs, and specific areas saw particularly impressive growth, with computer and information systems managers across all industries witnessing an 87.6% upswing between 2018 and 2023. These statistics come amidst a broader context where the U.S. and Canada added a combined 231,400 tech jobs last year, with names like the Bay Area, New York, Seattle, and Vancouver leading, along with emerging markets such as Nashville, Cleveland, and Kitchener-Waterloo in Ontario.
A notable trend in the Valley is the influx of young professionals, with Phoenix experiencing a 33.3% increase in residents in their 20s holding college degrees—a factor, released last November, which Tim Kempton, an associate at CBRE, claims contributes heavily to the region's appeal to companies. "Phoenix is delivering tech professionals and recent tech degree graduates with higher wages and opportunities," Kempton told Phoenix Business Journals. The number of residents in their 30s with college degrees also grew by 21.5%, placing the city eighth for growth among U.S. markets in this category.
While Phoenix may be more cost-effective than larger tech hubs, with company costs estimated at $54.3 million for one year and reasonable real estate prices, the city's average tech salary increased by $13,663 last year to $97,977. By comparison, tech hubs like the Bay Area and Seattle command far higher average wages, standing at $192,969 and $176,189 respectively.
Furthermore, Tucson, not far from Phoenix, is making its own mark on the tech scene. CBRE's Scoring Tech Talent report placed Tucson 15th on its list of the top emerging tech markets. The city had 16,710 tech workers and an average annual tech wage of $105,480 in 2023, though it noted a modest growth of 0.8% in the sector.
