Report: Midwage jobs vanish in Silicon Valley
For the first time, this report documents an alarming fact: The middle fell out of the region’s payroll between 2002 and 2006.
Federal and state jobs data show that 62,050 midwage jobs – defined as having salaries between $30,000 and $80,000 – vanished during that four-year period, according to the report.
During the same four years, employers added 66,200 jobs that paid less than $30,000. And despite bullish times for the likes of Google and Apple, Silicon Valley employers added just 16,790 jobs during that period that paid more than $80,000.
“We have indeed documented a squeeze on the middle. Now we have to figure out what it means and what to do about it,” said Russell Hancock, president of Joint Venture: Silicon Valley Network, the public-private partnership group that has been issuing such reports since 1995.
I’m sure some losers will bemoan this situation. Boo hoo – middle class jobs are disappearing.
But actually, this is a good thing – for homeowners. As more middle class jobs disappear, that means the population mix will include more people earning good $100k salaries – and that means they can afford to pay more for houses.
Or more simply: less middle class jobs = more rich people = increased housing prices. Can you say: Manhattan?
And, this works on the bottom end too: less middle class jobs = more low wage people = more renters = more rental income for homeowners.
Either way, this is great news and it’s a great time to buy a home in Silicon Valley.
If we all work together, we can make 2009 the year we beat Manhattan in housing prices. Let’s pull together and make it happen!