Once a hub of innovation and a symbol of technological advancement, California is now experiencing a notable decline in tech jobs. Insiders have shared concerns that Democrats’ superficial measures might further exacerbate the situation.
Northern California, particularly the Bay Area, is known for Silicon Valley—where figures like Steve Jobs, Bill Gates, and Larry Page sparked the tech boom in the 1990s. However, since the pandemic lockdown in 2020, the tech industry in the state has sharply contracted.
California’s tech dominance wavers
Since 2020, the state has reportedly added only around 6,000 tech jobs; that’s the lowest growth since 2008. Before the lockdown, California held about 19% of all tech jobs in the U.S., but that has dropped to 16%, marking a 3% decrease, including a 0.4% decline in the past year, according to Aplicitas Economics.
As tech jobs decrease nationally, California appears to be particularly affected. The state’s high-tech sector saw a gain of 60,000 jobs from 2020 to mid-2022, but this was followed by a loss of 71,000 jobs from 2022 to 2025.
Alison Hine, an innovation advisor and former Obama fundraiser, reflected on how different the industry was during the 1990s. Huynh, who transitioned from Texas to Stanford, recalls being involved in launching the nation’s first business plan competition that eventually contributed to Google. Hine pointed out that the rising cost of living, crime, and homelessness in California are central reasons tech jobs are relocating to states like Florida and Texas, creating a “perfect storm” of issues.
“It’s really common sense that tech jobs would move out. People seek the American Dream—affordable living, safer neighborhoods, functional schools, and the possibility of homeownership. Home prices in California are just outrageous. About 70% of people living in San Francisco rent instead of owning, so achieving the American Dream there seems impossible,” Huynh explained.
“California struggles with a mix of high taxes, sky-high housing costs, and stringent regulations,” Huynh continued. “We have ample oil and gas resources, but excessive regulations are pushing the energy sector out. Consequently, we import oil and gas, causing soaring energy prices that affect everything, even food costs.”
Gregory Bennett, a tech entrepreneur who once lived in San Francisco, decided to go to Florida “to seek greener pastures.” He shared his efforts to improve his city regarding homelessness and housing issues during his seven years in the tech industry and two years working in related services.
“What I’ve seen reflects a broader issue—these welfare services seem like monopolies targeting cities. They aim for expansion rather than problem-solving, which can be frustrating. I didn’t feel like my contributions were effective,” Bennett said.
Newsom focuses on AI
Several companies, including Tesla, Oracle, and Palantir, have announced departures from California, citing crime, high taxes, and stringent regulations.
In an attempt to combat ongoing issues, Governor Newsom recently partnered with four leading tech companies in the AI sector to prepare California’s workforce for future opportunities in this area.
However, both Huynh and Bennett express concerns about how this initiative might impact job availability. Huynh noted, “All this excitement about making California a hub for AI is fine, but there’s a risk. AI might create some high-level jobs, but it could result in the loss of many others. You could see potentially thousands losing their positions across various sectors, not just tech.”
Bennett supports Huynh’s view, pointing out that while AI can boost productivity, it also poses a threat to job security. “The main benefit of AI is enhancing productivity. It essentially creates a research assistant for everyone, which directly affects employment—some jobs are redundant now,” Bennett elaborated.
While businesses like IBM plan job cuts, and Google has recently laid off designers to invest in AI, the potential for widespread layoffs hangs in the balance.
Huynh and Bennett also mentioned that the competition from H-1B visa holders complicates the job market further, as they often accept lower salaries for similar skills, exacerbating challenges for U.S. tech jobs.
When discussing prospects for California, Huynh emphasized the need to rekindle the state’s past leadership in innovation. She suggested lowering living costs, streamlining regulations, and offering tax incentives to attract entrepreneurs back to the state.
“California needs to rekindle that hunger for innovation. Look at what cities like Dubai and Singapore are doing; we need bold incentives, reduced bureaucracy, and to make business licenses quicker. We should convert vacant government buildings into startup spaces and labs. There’s a strategy to follow; it just seems California has forgotten it,” Hine concluded.
