The demand for tech employees is showing no signs of abating in the second quarter, and Birmingham’s tech sector is seeing particular growth.
Of the nation’s 148 largest metro areas, 58% posted at least a 20% increase in tech jobs between the first and second quarters with overall postings increasing by 117,022. The average metro recorded a 25% increase, according to a CompTIA analysis of Burning Glass Technologies labor insights data. Only 10 of the 148 metros in the analysis had fewer postings compared to the first quarter.
Birmingham was the only metro among the nation’s 50 largest in the top 10 for percentage growth.
The data shows which regions are seeing an accelerated demand for tech talent, and the Sun Belt continues to set the pace for growth. On a percentage growth basis, Alabama markets took three of the top four spots: Montgomery (78% growth), Mobile (72% growth) and Birmingham (72% growth).
Birmingham is home to delivery service Shipt and will soon serve as the headquarters of Landing, an apartment rental company that recently unveiled plans to hire more than 800 workers and move from San Francisco.
The Alabama markets were joined in the top five by Carson City, Nevada, (76% growth) and Dover, Delaware, (65% growth).
Local experts say the growth is due to a number of factors.
Kellie Clark, director of programming for Innovation Depot, said there is an influx of people who are wanting to participate in the tech economy in general, but that growth is also due to the uptick in companies formed during Covid.
She said many companies in the Depot are seeing a need for additional team members, and the depot is at a 98% occupancy rate.
“It’s such a positive thing because it’s at least one indicator of the financial health of startups who are in our ecosystem,” Clark said. “It shows that they’re able to sustain increased technical talent. I think it can also signal that we have a growing number of startups who are fitting into their market and possibly having more demand placed on them for customers, and they need a team that can support that demand – all of which are positive.”
Deon Gordon, CEO of TechBirmingham, said he thinks the increased number of job postings is a result of high-quality leadership, with the current mayoral administration providing an atmosphere and a landscape that is supporting business and creating a startup-friendly environment.
Gordon said he expects the upward trend to continue, especially as local universities produce more talent. He wants to ensure growth is accommodated and momentum continues. He said more funds must go toward organizations that promote the tech industry and tech employment.
“If there’s a number associated with an effort, add another zero to it,” he said. “So if Innovate Birmingham has a budget amount to reach the students they are currently reaching, I would add another zero to that. If we have an accelerator that is providing venture capital ... I would add another zero. I would double down on the stage that we have now to make sure that those organizations are fully supported. We have no lack of good ideas, no lack of needed ideas and interventions that can be as simple as networking and providing spaces and opportunities for people to connect and gather.”
Clark said companies embracing and normalizing remote work is making the establishment of companies cheaper in the region and in Birmingham. Combined with the low cost of living compared to many other regions in the country, that is making the Sun Belt and Alabama a more competitive market in the tech industry.
