In this article, we will look at the 10 best states for technology careers in the US. We have also discussed the latest demand related to tech skills and job roles. If you want to skip our detailed analysis, head straight to the 5 Best States for Technology Careers in the US.
How Rapidly Are Careers in Tech Growing?
To understand the strength of the tech employment landscape, it is worth highlighting that over the next decade, the tech workforce is set to expand twice as rapidly as the broader US job market. As per CompTIA’s state of tech work force report of March 2024, projections suggest an average annual replacement rate of 6% for tech occupations from 2024 to 2034, equivalent to approximately 350,000 workers annually and totaling several million by 2034. This also explains why tech is one of the Top Industries That Are Hiring Right Now. Moreover, the median salary for tech roles is estimated to be about $104,556 which is more than double the median wage across all US occupations.
According to Forbes, District of Columbia has 3,612 tech businesses per 100,000 establishments, making it one of the states with the most tech companies. Moreover, states like California and New York are known to be the best states for tech startups in the US.
Most In-Demand Tech Skills in 2024
While the future of tech jobs looks promising, according to recent research, AI-driven technologies are pushing for a shift in skill requirements, rather than replacing jobs outright in the tech sector particularly. For instance, in 2024, the demand for AI skills is on the rise across various sectors, particularly in coding, web development, and data science. Freelancers equipped with these skills are observing higher earnings and engaging in more complex projects. Moreover according to a report by Lightcast, the demand for generative artificial intelligence (GenAI) skills has skyrocketed by 1,848% since 2022. This increase has confirmed a profound shift in employers' interests. From a mere 519 job postings in 2022, the number increased to over 10,000 since the launch of ChatGPT in December of that year. To read more about AI job postings, see the Top 20 US States for AI Jobs.
In parallel, the job market has seen an increase in postings for various AI-related roles, such as data scientists and software engineers, with notable exceptions like curriculum writers as educational institutions adapt to incorporate AI knowledge. The proliferation of these positions suggests a fundamental restructuring of industries to accommodate AI technologies.
Owing to the demand of digital and technical skills, data scientists, cyber security experts and machine learning learning engineers are predicted to have Careers that Will Be in High Demand in the Next 10 Years. Despite the prestige and hype associated with tech jobs, there has also been increasing fear due to persistent tech lay offs. Let’s look at what exactly went wrong and if a career in tech is an insecure option to consider.
Do Tech Lay Offs Mean a Weak Economy?
In the past few months, the economy has seen excellent growth alongside noteworthy layoffs in the US and around the globe. Since recent job reductions have primarily occurred in select sectors like technology, finance, and media, it has raised eyebrows about the rising insecurity within tech jobs. It is also worth highlighting that the overall job creation has increased in the US, averaging 248,000 new positions monthly over the last six months. With the unemployment rate standing at just 3.7%, these layoffs are overshadowed by strong hiring as well.
While layoffs can disrupt individuals' lives, they don't necessarily reflect economic weakness. Companies may trim their workforce for various reasons, such as adjusting to shifts in their business strategy or optimizing profit margins. For instance, many tech firms hired aggressively during the pandemic but misjudged future demand, prompting them to scale back. Despite these layoffs, overall economic indicators suggest a healthy job market, supported by consistent hiring across different industries.
Companies Hiring for Tech Roles in 2024
Visa Inc (NYSE:V) has currently 345 jobs postings available on its website for technology careers. Speaking of the company, Visa Inc (NYSE:V), has recetly launched a $100 million initiative with a focus on generative artificial intelligence (GenAI) ventures. Spearheaded by Visa Ventures, the company's investment arm with a track record dating back to 2007, this initiative speaks volumes about Visa Inc (NYSE:V) commitment to technological innovation in payments and fintech. Capitalizing on GenAI, a technology Visa Inc (NYSE:V) has been utilizing since 1993, the company aims to pioneer transformative changes in commerce.
On the other hand, Salesforce Inc (NYSE:CRM) has been on a hiring spree, rebounding from a major layoff last year. Despite laying off approximately 10% of its employees in 2023, Salesforce Inc (NYSE:CRM)’s headcount has increased to 72,682 workers by the end of the fourth quarter of fiscal 2024, up from nearly 80,000 previously. CEO Marc Benioff has set ambitious hiring goals and aims to onboard 3,000 new employees as the company ramps up its focus on artificial intelligence (AI).
The company plans to tap into regions with abundant talent pools and lower living costs. This approach also mirrors a trend observed in other tech giants like Oracle Corp (NYSE:ORCL), which have started avoiding hiring in high-salary cities such as New York and San Francisco. Nevertheless, the emphasis on AI and data is driving Salesforce Inc (NYSE:CRM)’s recruitment efforts, reflecting a broader industry shift towards advanced technologies.
To list the best 10 states for technology careers in the US in 2024, we identified the highest paying states for tech jobs using data from Bureau of Labor Statistics based on average salaries for Computer and Mathematics Occupations by state. Then, for each state, we looked at the net tech employment by state based on Comptia Org’s State of the tech workforce 2024 report. We gave each state a rank score (1 being the highest) for each of its metrics and averaged the scores to obtain an average rank. The list has now been presented in an descending order of average rank.
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10. Pennsylvania
Average Tech Salary: 22
Net Tech Employment: 9
Average Rank: 15.5
The average salary of a tech employee in Pennsylvania is $94,730 with the net employment standing at 313,152. This also explains why Pennsylvania is one of the best states for computer science jobs in USA.
However, it is still worth noting that in Pennsylvania, women in tech face major disparities, with a gender pay gap resulting in essentially working for free for 46 days in 2024. On average, they earn only 82.5% of what their male counterparts do in fields like game development, data science, and technical engineering. To read more about gender pay gap, see 20 States With Biggest Gender Wage Gaps.
9. Florida
Average Tech Salary: 23
Net Tech Employment: 4
Average Rank: 13.5
Florida is emerging as a tech hub, joining 31 other states designated by the Biden administration to stimulate innovation and job creation. The program is funded by a $10 billion allocation from the CHIPS and Science Act and essentially aims to diversify tech investment beyond traditional hubs like Silicon Valley.
The average salary of a tech worker in Florida is $94,200. With net tech employment standing at 532,760 in Florida, it is one of the states with the most job opportunities for tech workers in the US.
8. Georgia
Average Tech Salary: 16
Net Tech Employment: 10
Average Rank: 13
Georgia is a hot destination for tech careers due to its thriving ecosystem centered around Atlanta, which hosts major players like Alphabet Inc (NASDAQ:GOOG), Microsoft Corp (NASDAQ:MSFT), and International Business Machines Corp (NYSE:IBM). Moreover, with an average salary of $100,750 for tech careers, Georgia is one of the states that pay the most for IT jobs. The net employment in the tech sector in Georgia is 312,010.
7. Illinois
Average Tech Salary: 17
Net Tech Employment: 7
Average Rank: 12
Illinois is about to set off for a quantum technology revolution and hence, is set to generate significant economic impact and job growth. With a projected $60 billion boost to the Chicago metro area over the next decade, the Bloch Quantum Tech Hub's initiative promises substantial growth. Governor JB Pritzker anticipates the creation of 30,000 quantum jobs, training for 50,000 workers, and support for 200 quantum companies by 2035. In 2024, the average annual salary in the tech sector is $100,600 in Illinois.
It is also worth highlighting that Chicago is known to be one of the top 10 cities for IT jobs in USA.
6. Texas
Average Tech Salary: 20
Net Tech Employment: 2
Average Rank: 11
The tech sector in Texas plays a crucial role in the state's economy, contributing nearly 5 percent of its GDP and over 9 percent of total employment. Over the past decade, Texas' high-tech sector has seen robust job growth, expanding at an average annual rate of 4.7 percent, more than double the state's overall job growth rate. This growth is fueled by factors such as business relocations, federal investments in semiconductor production, and emerging AI technologies.
The average annual salary of an individual working in the tech industry in Texas is $98,210. Moreover, with 936,296 net tech employment in the state, Texas is one of the states with the most jobs for tech workers.
