Tech Industry Jobs Linked to Financial Markets

Technology companies account for about half of the NASDAQ index market capitalization and its performance represents future business and workforce growth. As a result, national high-tech industry employment is highly correlated with the NASDAQ. Between 2009 and 2019, the U.S. high-tech industry added 1.4 million jobs to the economy, growing 60% or four times the 15% national rate. The employment growth over the past decade boosted tech occupancy across the U.S. with the three fastest growing regions expanding tech occupancy by 147 million sq. ft. The San Francisco Bay Area doubled tech occupancy, adding 100 million sq. ft. while Seattle added 27 million sq. ft. and Manhattan added 20 million sq. ft. Since the NASDAQ leads tech industry employment by one year it appears job growth will further increase despite recent financial market turmoil. Thus, advance notice of tech sector growth changes and the associated office space demand should be indicated by a sustained NASDAQ movement.