A report issued by the US Bureau of Labor Affairs has examined the employment patterns and investments in Silicon Valley between 2000 and 2008.
And the figures show a steep slump in the average wages between 2004-2008. Before the dot.com bubble bust, the real average annual wage in Silicon Valley was $120,064 – that had fallen to $103,850 by 2008 – the last year for which figures are available.
Although between 2003 and 2004 profits rose by 170 percent for the largest 150 companies, that didn’t translate into vigorous job growth. Workers shouldn’t complain too much though – they earned way more than non-Silicon Valley high tech and way way more than people earned in all sectors.
And while VC capital investments in Silicon Valley shot up between 1999 and 2000, growth in subsequent years was quite a lot more subdued.
Semiconductor manufacturing showed declining rates between 2004 and 2008. Semiconductor manufacturing lost the most jobs – over 34,000. And between 2000 to 2008, the high tech industries shed over 108,400 jobs – nearly 20 percent of the total workforce with real wages falling by 13.5 percent.
The full report is here.