Austin's tech labor market, which was already tight heading into the pandemic, has grown even more so as California companies flock to the capital city. It's made for a situation where employers are listening more to worker demands to fill job openings.
For tech workers—like their counterparts in the restaurant, construction and myriad other industries facing labor shortages—that means setting their own terms, such as remote work options and higher wages.
"We are living in times when the employees are the king or the queen," said Angelos Angelou, founder and CEO of local consulting firm AngelouEconomics.
A talent center
Lured by the state's business-friendly climate and Austin's growing tech scene, California-based companies such as Tesla, Oracle and TikTok built factories, relocated headquarters and opened offices. Austin posted the highest tech migration rate of any city in the country between May 2020 and April 2021, according to a recent LinkedIn analysis.
With so many new resident businesses, job growth kept pace. The Austin metro ranked fourth nationally for tech job postings growth in March, according to Silicon Valley Bank's latest State of the Markets report.
Oracle relocated its headquarters to the Riverside location in Austin. (Shutterstock)
To fill these roles, local tech companies have to look beyond the city limits. Employers poach from their competitors, recruit recent graduates from area colleges and universities or look to the national labor market for talent, Angelou said.
Summer Salazar, director of employer engagement for Texas Career Engagement at the University of Texas at Austin, has seen a huge influx in tech sector job postings on the university's job board in recent months. "We feel that demand," she said.
An employee's market
Jaime Cabrera, 28, recently graduated from the LBJ School of Public Affairs at the University of Texas at Austin and is looking for a policy job at a social media company. He didn't go into his job search with plans to stay in Austin but has seen various intriguing openings, citing Bumble, Lyft and TikTok. "I didn't realize how many companies are here," he said.
The tech labor market also affects employees who are not looking for a new job but instead seeking better benefits or internal policy changes from their current employer.
Lawrence Humphrey, 27, lives in North Austin and works for IBM. Shortly after the murder of George Floyd, he co-founded Tech Can Do Better, which advocates for a more equitable industry. Since then, there has been little quantitative progress in terms of more diverse hiring and other metrics. But there has been a qualitative shift. "Issues around racial equity are just far more of a priority from the perspective of the employees, so therefore it's far more of a priority for the employers," he said.
OG vs. newcomers
Although the pandemic has accelerated the growth of Austin's tech industry, the industry was already established. In the latter half of the 20th century, the city attracted big tech originators like IBM because of its enticingly low labor cost and spawned homegrown giants like Dell—trends that continue today.
The arrival of Silicon Valley tech transplants in other growing tech cities, such as Miami, has led to tension with the so-called old guard. In Austin, such competition has forced companies to compete for workers, leading to more mobility.
"When I was in the job market, my god if you changed jobs often—and often meant once every three years—you were considered a traitor," said Angelou, who headed the Austin Chamber's economic development department from 1984 through 1995, helping to recruit companies such as IBM, Apple and Samsung to town. "Now people change jobs every nine months, it appears, and that is considered a plus."
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- San Marcos favorite Industry Burger opens "mid-October" on E. 5th, featuring "low key healthy" Texas fare.
- Still Austin Whiskey Co. introduces "The Artist," its new rye whiskey.
- Domain NORTHSIDE favorites Bakery Lorraine, Grimaldi's Pizzeria, Jeni's Ice Cream and Sprinkles released their fall flavors.
- Cinnaholic at The Arboretum opens Friday, October 14, serving "create your own" cinnamon rolls and other sweet treats.
- San Francisco's Marufuku Ramen opens next Wednesday, October 12, in the Mueller District.
- Carpenter Hotel announces its popup food truck, Lil Carpenter, open Fri-Sun both ACL weekends, serving what you want, early to late, coffee to donuts, to dogs/burgers/fries/beer.
With major entertainment events slated for October, the Austin-Bergstrom International Airport is gearing up for a busy month.
Artists and music lovers are set to pack into Zilker Park for The Austin City Limits Music Festival in the coming two weekends. Following that, Formula One will bring racing fans to the Circuit of the Americas.
For those two events, the airport is anticipating high passenger days with 30,000 or more people departing flights.
ABIA recommends arriving at least two and a half hours in advance for domestic flights on those days. For ACL, it's expected on both Sundays of the festival along with the Monday and Tuesday after. The F1-driven high passenger days are expected on Oct. 20-21 and Oct. 23-26.
\u201c#AustinCityLimits visitors, you\u2019re in for a weird and wild ride \ud83e\udd18\u262e\ufe0f \n\nFlying in or out of our airport? We got firm and fun tips for you: https://t.co/RawVRalOXN\u201d— Austin-Bergstrom International Airport (AUS) (@Austin-Bergstrom International Airport (AUS)) 1664894083
F1, especially, could draw in loads of travelers as the three-day event saw 400,000 attendees last year. ABIA warns that highways leading to the airport may see even higher traffic than usual around the event and that travelers should plan their route accordingly.
Bailey Grimmett, a spokesperson for ABIA, said travel numbers come in 24 hours in advance. So, it's hard to predict if the airport will see travel volumes at the same levels that have happened around previous F1 races or if it'll top ACL's flight traffic.
Still, she says historical knowledge points to a chance for it.
“We've had that Monday after F1 break the record for single busiest in airport history," Grimmett said. "So context clues I would say yes, but I can't confirm that. But the historical background points to that."
In anticipation of the high volume of flyers, the airport received additional TSA officers for security screening through the end of October. To prepare even further, the Department of Aviation and partners hosted a job showcase and hiring fair to address the continued labor shortage the airport has experienced.
Relief from hectic travel days is on the horizon with November likely to see a slowdown.
"I don't anticipate it will be as busy as October just because we don't have as many events going on," Grimmett said. "Thanksgiving is kind of our primary holiday that we see a lot of passengers coming in and out of the airport."