Texas made a strong showing on a new ranking of places with the brightest outlook for job growth in fields of science, technology, engineering and math, known as STEM.
Austin, Dallas and Houston earned a place on the 2021 STEM Job Growth Index, an annual index produced by RCLCO Real Estate Consulting in partnership with CapRidge Partners, a commercial real estate firm focused on office investments. The index analyzes the economies of the largest metro areas to track and project STEM job growth, examining factors such as migration patterns, wage growth, business climate, cost of living and quality of the workforce.
“We believe that tracking these factors and understanding the momentum and growth of STEM jobs is important because it can indicate where opportunities exist for future investment and for future growth both for commercial real estate directly related to these jobs as well as residential real estate in these cities that are trying to find ways to house these new workers,” Karl Pischke, vice president at RCLCO, said in a presentation on the report.
The high-paying STEM jobs are viewed as drivers of job growth and tend to be more resistant to economic shocks than some other sectors, according to RCLCO. The U.S. Bureau of Labor Statistics projects more than 1 million STEM jobs will be added during the 2020s.
Jobs that have grown the fastest over five years include computer user support, industrial engineering, information security and civil engineering, according to RCLCO. Jobs in the science sectors could see a jump post COVID.
Top cities on the 2021 STEM Job Growth Index:
4. San Francisco
5. Washington, D.C.
6. San Jose, Calif.
7. Raleigh, N.C.
10. Salt Lake City
14. New York
15. Charlotte, N.C.
18. San Diego
Austin, which is expected to gain more than 15,000 jobs from Tesla’s headquarters relocation and new gigafactory, ranked No. 3 on the list behind Denver and Seattle. Austin moved down from No. 2 on the index last year.
Google will more than double its office space in Austin next year with the completion of a 750,000-square-foot building in downtown, according to RCLCO. Software giant Oracle, which is relocating its headquarters to Austin, already employs 2,500 people there.