Profits, Not Jobs, on the Rebound in Silicon Valley

Interesting article that is worth a read.

In the last three years, profits at the seven largest companies in Silicon Valley by market value have increased by an average of more than 500 percent while Santa Clara County employment has declined to 767,600, from 787,200. During the previous economic recovery, between 1995 and 1997, the county, which is the heart of Silicon Valley, added more than 82,800 jobs.

Jobs aren't coming back because it is cheaper to hire people in other parts of the world.

One key measure, known as value added per employee, rose 3.7 percent in 2004, to $222,000 in economic value per worker. That compares with $85,000 per worker in the rest of the country, according to data reported by Joint Venture Silicon Valley, a regional economic research group.

But, workers add more value here than anywhere else in the country (and I would guess in the world).

Via New York Times