Why are Digital service jobs in the United States concentrated in a select few metros?

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The importance of technology in our everyday life cannot be overemphasized. Humans now need technology for virtually every daily activity. In fact, in a lot of industries, the daily use of advanced technology gives an added advantage. Hence, man seems dependence on technology in today’s modern world.

The industrial revolution from the 18th century has sped-up technological breakthrough. Meaning,that as technology gets better, industrialization also improves, and the better industrialization gets, there will be better improvements in technology.

The present generation has felt the influence of technological improvements like none other before it. Technology largely controls our lives, with software and apps for almost everything conceivable, some evenmade for young children. Everybody in society, whether old or young, regardless of social status is in some way connected to the world because of technology. Indeed, because of technology, the world is now a global village. The influence of technology is seen in all sectors: in defence, health, academics, agriculture, communications, power etc. There’s no sector spared of its influence

One problem, however, is that technology jobs are not evenly distributed globally. Now using the United States as a case study, nearly 50 percent of all high-tech digital service jobs in the U.Sare bunched-up and clustered in just ten of its largest metros, which mainly span the San Francisco Bay Area and the Boston-New York-Washington Corridor as published by getpocket.com. In spite of this, cutting-edge technological innovations will continue to transform American jobs across all sectors just like in any other part of the world.

A chart on the Brookings analysis shows variations and distribution of high-tech jobs between 2010 and 2015 across cities within the United States.

San Francisco, San Jose, Austin, Dallas and Phoenix were the top five. Put together, these five accounted for more than 30% of development in tech job from 2010 to 2015.  Only 14 out of 100 metros accounted for any noteworthystake of nationwide growth. Thoughcertainlesser metros like Madison, Indianapolis, Raleigh, Charlotte, Pittsburgh,and Provo did experience growth in their share of nationwide development, their share of overall national growth remains insignificant compared to San Francisco or San Jose. At the very end of the list is a prominent outlier: Washington, D.C. Although it experiences some growth in tech jobs from 2013 to 2015, cuts spending for the defence sector significantly caused a drop in its share of tech jobs from 2010 to 2015.

CharlottaMellander highlighted factors for the lopsided geographic distribution of high-tech jobs and this includes:

  • High-tech jobs are inventions of more populated modern urbanized metros
  • High-tech job growth is also a feature of knowledge-based, highly-educated metros, is clearlyrelated to the population strength of adults who are college graduates.
  • The high-tech job growth rate is directly proportional to the economic strength with per capita income, wages, and productivity playing major roles.

The picture in the United State is also similar to what is obtainable globally.