A new report from The Brookings Institution has found out that the majority of technology jobs and affluence are happening only in a handful of metro cities in the US. As per the reports, 90 percent of all growth in innovation sector jobs has been clustered in five cities such as San Francisco Bay Area, San Jose, Seattle, and San Diego since 2005. These employments include jobs in science, technology, engineering, and math industries. These Jobs demand extensive research and development investments. Around 343 cities have been at a loss of such employments opportunities in the same period. Experts have observed that these fewer cities have been concentrated with wealth and productivity as well. Almost one-third of high paying employment is happening only in 16 countries. Half of the innovation-based jobs are concentrated in 41 countries.
These high paying job opportunities account for overall wage growth across the areas they are based in compared to other areas with a handful of employment prospects. This condition has also led to the rise of secondary work such as helpers to people on high paying jobs. These areas fetch educated people and investment revenue from other places. Around 40 percent of people are well qualified in the top 5 percent of metro cities with high paying job opportunities. These places have the privilege of cumulative causation, which attracts talented workers, revenue, and startups in bulk. It eventually drains out the key talent business prospects from other places. This trend has created a kind of one-sided gravitational haul in the employment sector.
However, these cities with high paying job concentrations do have negative sides as well. Worsening traffic and sky-high housing price are among the costs these cities pay to retain the high rate of employment growth. Experts have said that the nature of technology leads to the disparity between the innovation cities and the cities that have been deprived of innovation-based jobs. Tech firms require a lot of infrastructures, talent, and other companies to help them in their operations. Over time, these places tend to build necessary public transit, high-quality living, and infrastructure for established innovation. It creates clusters of sophisticated activity workers in one place in a way where the rich get richer in the economies. Such a condition creates an imbalance in high paying employment sectors in other places. However, tech industries are dominant in the US but at the same time, it has created a negative impact.