Employers identified three key drivers of Silicon Valley's workforce shortage:
- Limited supply of qualified candidates
- High housing costs in the Valley which affect attraction and retention of talent
- High wages which hinder small and mid-size companies’ ability to hire
The study determined that the incremental cost of the workforce gap to the high-tech industry in the Valley is approximately $3–4 billion annually. The study results also demonstrate that Silicon Valley students, the future pipeline of skilled labor, lack a familiarity and interest in high-tech careers and are therefore not building the skills required for these job opportunities.
Although many Silicon Valley stakeholders–companies, schools and colleges, non-profit organizations, and industry associations–have individually taken steps to address this issue, most efforts have not affected lasting improvements. Typically the efforts have been fragmented, short-term focused and not sustainable. The numbers of initiatives are insufficient to generate the needed momentum.
It is critical to rally Silicon Valley resources around actions that ensure the development and full utilization of its regional “homegrown” talent. A collaborative approach of all Silicon Valley stakeholders will be required to provide a sustainable long-term impact on the workforce shortage and ensure the economic growth of the Valley.
