California's Share of US Tech Jobs Dips Below 2008 Levels Amidst Industry Shifts

California's long-standing dominance in the U.S. tech sector is facing a significant challenge, with the state's share of national tech jobs now reported to be below 2008 levels. This development signals a structural shift in the tech landscape, driven by a confluence of economic, social, and technological factors. The Kobeissi Letter highlighted this trend, stating, "The % of US tech jobs located in California is now below 2008 levels."

Prior to the COVID-19 pandemic, nearly 19% of all U.S. tech jobs were located in California. However, recent data indicates this share has fallen to approximately 16% as of mid-2025, marking the lowest point in over a decade. This decline is more pronounced than previous downturns, including the 2008 recession, and reflects a sustained contraction rather than a cyclical dip.

Several factors are contributing to this exodus of tech jobs from the Golden State. The rise of remote work has enabled companies to hire talent from lower-cost regions, reducing the necessity for employees to reside in expensive areas like San Francisco and Silicon Valley. California's high cost of living, including housing and energy, along with elevated state taxes, makes it an increasingly less attractive location for both companies and tech professionals.

The post-pandemic hiring correction also plays a role, as many tech firms that aggressively expanded during 2020 and 2021 are now trimming staff or freezing hiring. Automation and artificial intelligence are further reshaping the industry, with AI tools automating some entry- and mid-level coding roles, leading to fewer opportunities in traditional tech sectors. While AI creates new high-value positions, it has not offset the broader job losses in California.

This shift has significant implications for California's economy, which has historically relied heavily on the tech sector for high-paying jobs and tax revenues. While the state's economy is experiencing a partial recovery, it is not returning to its pre-pandemic growth rates and lags behind states like Texas and Florida in GDP growth. Tech jobs are increasingly migrating to states with lower operational costs and more favorable business environments.