April 4, 2008
Silicon Valley Hiring Slowdown: Meaningful Or Meaningless?
"Hiring in Silicon Valley was strong during much of 2007 but lost momentum toward the end of the year, a slight slowdown that has continued into 2008, local experts on technology employment say.
"Last year was great," said Patti Wilson, principal of CareerCompany.com, a Silicon Valley job consulting firm. "Companies were hiring and they were competing with each other for top technology talent."
This year though, hiring has dropped off and some companies are laying off workers, she noted.”
First Published: April 4, 2008 8:13 AM
Comments from "Plugged In" Readers
I can verify that, we have put hiring on hold and have been told to cut spending. Interestingly enough our sales numbers aren't going down but management is buckling down for a very rough 2008.
Posted by: Snafu at April 4, 2008 8:46 AM
Silicon Valley companies are slowing and even freezing hiring in their low cost offshore satellite offices in India, China, etc. That is even more alarming than the slowdown in the high salary areas like the SF bay area.
If the SF RE market remains strong through 2008 then it indicates this is driven by people who cashed in long ago rather than a traditional salary driven market.
Posted by: The Milkshake of Despair at April 4, 2008 8:58 AM
I wonder where Internet--only companies are tracked here--software services?
But, Depends on your field. Certain areas of internet marketing remain white hot--we have had positions open for months and have had trouble filling them.
That said, overall we are also hunkering down and watching our spends very closely, and we are lucky to have very deep pockets.
I think where this will show up most will be in start ups, which will go belly up without a lot of VC money in the trough. Those with solid jobs at established, growing players should be able to ride this out.
Posted by: Melinda at April 4, 2008 9:41 AM
Most VCs I have talked to and/or heard from expect 08 to be a great year, with the exception of Burrill. (Note: My experience relates only to biotech) Start-ups tend to be scared of a looming recession right now and are offering up terms that are just too good for any half-way intelligent VC to pass up (if they are on board with everything else re the start-up, of course). Hiring may have slowed, but investment doesn't seem to have at all. At least from my perspective.
Posted by: Craig at April 4, 2008 9:49 AM
It'll be interesting to see if rents keep going up with economic slowdown turning into a standstill. From today's WSJ:
"San Francisco remained among the strongest rental markets for landlords. Rents there increased 2.1% in the quarter to $1,801 on average. In past 12 months, San Francisco rents have increased 11.5%, the fastest in the country. Other strong markets include Seattle; Omaha, Neb.; Los Angeles and New York."
Posted by: jamie at April 4, 2008 10:21 AM
What is going on in Omaha? Biofuels?
Posted by: Craig at April 4, 2008 10:31 AM
What's the thinking behind a good VC year? With the credit crunch on it would seem to not be so good....
appreciate your contribution!
Posted by: Melinda at April 4, 2008 1:09 PM
Just because there is a credit crunch does not mean VCs have no money to invest. They will still make their investments, just as they did last year, and the year before, and the year before, etc. Bear in mind that biotech investing typically has a VERY long timeline to exit for a VC, in comparison to tech (thanks FDA :)).
Posted by: Craig at April 4, 2008 1:38 PM
If I were an RE investor in the city of SF, I would be more concerned about the turmoil in financial markets and how that affects employment downtown than what's going on down on the Peninsula.
Posted by: Jimmy (Bitter Renter) at April 4, 2008 4:00 PM
perhaps a hiring slowdown, but the bay area has weathered the housing 'crash' rather well. the peninsula, and especially SF proper, have hardly lost any value in housing. i don't think a hiring slowdown will have a dramatic effect in 08 either. rents may increase less in 08, but i don't think SFH prices in desireable places are going to go down much.
the caveat is, if credit remains tight, hiring slow, etc. well into 09, along with a national recession which persists in 09, THAT may change the equation.
in the meantime, bay area owners should just hang tight. i'm keeping an eye on the market, actually hoping for a summer 08 slowdown, so i can consider another investment property in SF. it's time to ref-fi and line up the finances, so i can pounce on the right deal. but i have my suspicions, as i think there are many other optomistic investors in SF ready to buy a decent deal.
Posted by: AMinSF at April 4, 2008 10:03 PM
do you think IT hiring will come up after the election?
or atleast after by the beginning of next year?
Posted by: mathew at October 25, 2008 12:28 AM