South Florida has more technology jobs available than graduates ready to fill those open roles, according to a new report from CBRE focused on the growth of the U.S. tech sector.
The Miami-area saw 14,273 students graduate with tech degrees from 2017 to 2021 and added 15,090 tech jobs from 2018 to 2022 as those students entered the workforce. The region was home to 77,700 tech professionals by 2021, a 24% increase.
The region struggled to graduate enough students to meet the workforce demand, despite being home to the most tech graduates in Florida.
Like tech talent, wages are also growing. The average wage for tech workers in South Florida reached $72,162 in 2021 and wages for all tech jobs grew nearly 30% from 2017 to 2022. However, of the 50 markets analyzed, locals earned one of the lowest average wages in the nation, only coming in ahead of Cincinnati.
With an average annual salary of $73,962, Tampa tech workers earn the highest wages in Florida.
The 2023 Scoring Tech Talent Report ranks South Florida No. 31 in North America for its tech pipeline. The top five markets were the same as last year: the San Francisco Bay Area, Seattle, New York City, Washington, D.C. and Toronto.
The Miami-area stands out as the nation's most culturally and racially diverse market, with more than 70% of the region's tech graduates coming from underrepresented backgrounds. During the period analyzed, 54% of those graduates were Hispanic, 15% were Black, 6.6% were Asian and 22% were white.
But South Florida was least diverse area for women tech degree graduates out of the major metros analyzed. Pittsburgh, Seattle, Boston, the Bay Area and New York City were home to the most women graduates, the report said.
When it comes to operating costs, the tri-county area ranks in the middle of the top 50 markets. CBRE reports the average one-year cost to run a 500-employee tech company occupying 60,000 square feet in South Florida amounts to $48.2 million. That's about 48% less than what it would cost to operate in the Bay Area.
South Florida's multiplying number of tech graduates and proximity to emerging talent in Latin America are strengths for the ecosystem, said CBRE senior vice president and local market expert Grant Killingsworth.
Local companies have continued to attract record-setting funding rounds in recent years despite an overall slowdown in the tech industry, he added.
"Our diverse talent base, favorable economic environment, and access to capital will continue to position South Florida as a tech hub in the South," Killingsworth said.
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