Silicon Valley’s most important asset is its people, who drive the economy and shape the region’s quality of life. Population growth is reported as a function of migration (immigration and emigration) and natural population change (the difference between the number of births and number of deaths). Delving into the diversity and makeup of the region's people lends a way to better understanding our assets and outlining our challenges.
The number of science and engineering degrees awarded regionally helps to gauge how well Silicon Valley is preparing talent for our specialized, export-oriented industries. A local workforce equipped with strong skills is a valuable resource for generating new ideas and innovative products and services. The region has benefited significantly from the entrepreneurial spirit of people drawn to Silicon Valley from around the country and the world. In particular, immigrant entrepreneurs have contributed considerably to innovation and job creation in the region.1 Maintaining and increasing these flows vastly improves the region’s potential for closer integration with other innovative regions and thereby bolsters its global competitiveness.
Silicon Valley's population continues to grow at an increasing rate, driven primarily by an influx in foreign migration. While historically stable, natural population change (births minus deaths) continues a pattern of decline, falling three percent from 2011. Net migration has reached a 15-year high with a net gain of over 11,000 people. Diverging from the historical pattern of net out-flows of American citizens from Silicon Valley, both foreign-born and domestic residents comprised the migration increase into the region over the past two years.
Silicon Valley's population has a higher concentration of young working-age residents than the nation. In Silicon Valley, 25 to 44 year olds represent the largest portion of the region's population, a trend mirrored in the state. In contrast, nationwide, the 45 to 64 year old age bracket is the largest age group. Although age distribution across the three geographies is similar, Silicon Valley has a lower percentage of residents under age 24 compared with the state and nation.
Educational attainment across all ethnic and racial groups is notably higher in Silicon Valley than the state. Since 2006, gains have been made across a majority of ethnicities in the region. In 2011, the share of Asian adults with at least a bachelor’s degree rose to 59 percent, compared to 49 percent statewide. However, the proportion of Hispanic and African American adults with higher education levels slipped, to 23 percent and 14 percent respectively. Statewide, California has made steady improvements across all ethnic and racial groups since 2006.
The number of science and engineering (S&E) degrees conferred in the region has consistently grown since 2007 and has expanded 32 percent since 1995. Silicon Valley reported a three percent increase in S&E degrees conferred in 2011 compared to six percent nationally.
Silicon Valley continues to attract a high proportion of foreign-born professionals, particularly in science and engineering. In 2011, almost half of all employed Silicon Valley residents with a bachelor's degree or higher were foreign-born. Sixty-four percent of those in science and engineering were foreign born. This compares with only 26 percent of science and engineering professionals nationwide. While the number of foreign-born professionals in Silicon Valley decreased slightly with the Great Recession, numbers have increased since 2009 to more than 270,300 in 2011, 40 percent of whom are in science and engineering industries.
Figure 4: Educational attainment varies across ethnicities
Educational Attainment
Percentage of Adults with a Bachelor's Degree or Higher by Ethnicity
Santa Clara & San Mateo Counties and California
Note:
Categories Black, White, and Asian are non-Hispanic. Multiple and Other includes American Indian and Alaskan, Native Hawaiian and Pacific Islander, Two or More Races, and Other Races
Data source:
U.S. Census Bureau, American Community Survey
Analysis:
Collaborative Economics