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San Jose metropolitan area falls in economic rankings, reports details
A recent report shows Silicon Valley’s economic growth faltered in the wake of the COVID-19 pandemic, though local experts say business has been recovering.
www.nbcbayarea.com
San Jose metropolitan area falls in economic rankings, reports details
The Milken Institute, a global think tank, has ranked the San Jose metropolitan area 108th out of 200 large metro areas nationally in its 2025 Best Performing Cities report. The ranking is based on the region's tech sector growth, labor market and access to economic opportunities. Silicon Valley plummeted 64 points from 44th in 2024. Ten years ago it was ranked No.1. The San Jose metropolitan area includes Santa Clara and San Benito counties.
He said growth in other metro areas likely comes from companies based in Silicon Valley, as companies began hiring remote workers who live elsewhere. Distributing operations like that helps grow the entire sector and, given the Milken Institute's methodology, it's likely measured as growth in other cities.
Along with San Jose's steep decline, San Francisco dropped 102 rankings -- from 27th in 2024 to 126th this year.
While Silicon Valley's tech sector remains highly competitive, other quality of life factors brought the ranking down. The San Jose metropolitan area has the highest concentration of tech industry, but ranks 192nd in job growth and 191st in wage growth, respectively. Other reports have found while Santa Clara County's median income has gone up nearly 75% in the past 10 years, the price of a two-bedroom apartment has risen about 90% during the same period.
Hancock said that discrepancy came from the region's steep wealth gap, where Silicon Valley has some of the nation's highest earners and severe poverty levels.