Silicon Valley index shows job loss slowing Silicon Valley index shows job loss slowing (February 13, 2004)

Job losses in the South Bay are slowing, according to a business index recently released by Joint Venture Silicon Valley.

The organization released its 2004 Index of Silicon Valley and Palo Alto city officials were pleased with the results.

Five Palo Alto City Council members and city staff who attended the presentation when the report was given say the jobs data gave reason for optimism.

As of the second quarter of 2003, Silicon Valley had 1.17 million jobs. About 5 percent of those jobs had been lost between the second quarter of 2002 and the second quarter of 2003. Job loss has slowed from the previous period, when Silicon Valley lost 10 percent of its jobs.

Since the peak of employment in the second quarter of 2001 to the second quarter of 2003, about 202,000 jobs have been lost. However, the region added nearly 357,000 jobs from 1992 to 2000, meaning the net number of jobs gained is about 153,000.

Silicon Valley has significantly increased productivity with relatively small increases in job creation. The index also revealed that while well known for its high-skilled and high-paying jobs, a majority of Silicon Valley employment is in mid-wage occupations.

Biotechnology and health services are two bright spots in a still-bleary economy, according to the report's findings. The health services industry added 1,400 jobs in Silicon Valley between 2002 and 2003, while nearly all other industries lost jobs.

Although venture capital declined for the third straight year, investments shifted from industries like Internet technology services to medical devices and biotechnology.

In addition, community colleges awarded more certificates to students, with the greatest increase -- 60 percent -- in health certificates.

According to local economic leaders, these results only emphasize the importance of education, career training and progression. As the economy restructures, identifying the job growth areas and training employees to move into better jobs will provide workers for the coming decades.

-- Bay City News

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