ON Partners, the results-driven retained executive search firm, today announced the results of its Digital Jobs Index for the first quarter of 2018. Bay Area employment increased at a rapid pace, with over 4,375 new jobs added in the software and internet sectors for a 2.1% employment gain. New York City showed a 1.8% gain and added almost 1,280 jobs, while Boston’s headcount growth was slower at 1.1%, with an increase in headcount of just 650 people.
Bay Area growth was mainly driven by the success of its largest employers, which added extensively to their payrolls. New York growth was driven by broad hiring across the software and internet sectors, with 70% of companies increasing headcount. Meanwhile, Boston’s largest companies were relatively slow to add to their payrolls and the hiring scene was mixed, with only 52% of companies adding jobs while the remaining 48% either decreased headcount or remained flat.
“The bottom line is that big Bay Area companies clearly won the jobs race in Q1,” noted John Barrett, partner at ON Partners. “A possible explanation for Boston’s relatively low growth in hiring is that much of the venture capital dollars are flowing into the city’s biotech sector, which is muting employment growth in software and internet companies.”
The Digital Jobs Index tracks three key areas: headcount growth among the leading 100 software and internet companies in each city; headcount growth driven by the Top 10 companies (an indication of breadth and depth of hiring); and the percentage of companies that increased their headcount. Together, this data provides a barometer of the current health of the labor market in the software and internet sectors.
When considering a company’s eligibility to be included in the top 100, ON Partners considers the number of local employees in each city, employment growth and importance to the local technology community. The Digital Jobs Index represents the quarterly headcount change among those 100 companies within a 50-mile radius of each metropolitan area. ON Partners’ Digital Jobs Index is current as of March 30, 2018.
For full results of the study, please visit https://www.onpartners.com/news/1st-qtr-2018-digital-jobs-index.