Local groups cultivating new skilled workforce
With close to 4,000 technology companies employing more than 100,000 people—about 18 percent of the city's workforce—Austin has secured a title as a national technology sector hub. But that has not left the city immune to a current nationwide talent gap in high-tech skills due to new technology trends and a rebound from the Internet bust in 2001.
Dr. Bruce Porter, chairman of the Department of Computer Sciences at The University of Texas at Austin, said companies are hiring again, but they have recovered faster than recruitment. Larger tech hubs such as Silicon Valley in California are also experiencing the shortage, but Austin's talent gap is exacerbated by the city's rapid population growth and rising demand for software over hardware—a trend shift requiring new tech skills and more training.
Rise of a tech hub
Austin first emerged as a tech hub in the mid-1990s during the nationwide dot-com boom. Companies ranging from small startups to major global tech corporations such as Dell Inc., Apple, Samsung Electronics Co. and IBM have either set up shop or expanded in Austin.
At the same time, the city's semiconductor and microchip market took off, with companies such as Austin-based Freescale Semiconductor emerging as a global leader. However, the scene began to change in 2001 with the dot-com bust, when Internet companies over-saturated the market, cutting off the demand for tech recruitment and education nationwide.
