SAN FRANCISCO (KRON) — There are extra jobs within the San Francisco Bay Space that pay over $500,000 than another metro area within the county, in keeping with a latest survey. About one in each 127 jobs pays upwards of $500,000 a 12 months the survey, which was printed by ADP Analysis again in November, decided.
And that coveted high-paying job we’d dream of could be extra frequent than you’d suppose. In accordance with the examine, there are effectively over one million individuals in america who earn $500,000 or extra.
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“This isn’t just a small handful of executives,” the survey mentioned. “It’s a substantial number of professionals found in every major metro across the country.”
‘In a league of its personal’
Whereas numerous massive U.S. metros ranked excessive for the share of residents incomes $500,000 and up, the SF Bay Space’s shut proximity to Silicon Valley places it “in a league of its own,” the report mentioned.
The Bay Space “vastly outranked every other metro in terms of high-paying jobs,” the survey that. That features jobs that pay greater than $1 or $2 million yearly. Whereas about one in each 127 jobs nationally pays greater than $500,000, within the Bay Space it is one in each 48 jobs.
That is almost double the second- and third-highest rating metros of Austin and New York.
Here is how the general rankings shook out:
Graph: ADP Analysis
Why are salaries within the Bay Space so excessive?
So, what’s behind the disproportionate variety of astronomically excessive Bay Space salaries? In accordance with ADP Analysis, not like different extremely paid professionals like docs or legal professionals, tech execs’ incomes aren’t restricted by the variety of sufferers or shoppers they see.
“Productivity in the tech industry, particularly at large employers, faces fewer constraints,” the survey mentioned. “A single star engineer or executive has the power to dramatically shift a company’s trajectory, and tech giants with enormous revenue at stake often reward these select individuals with extraordinary compensation.”
That, in keeping with the report, explains why tech hub Austin is ranked second, adopted by New York, which is each a tech hub and a monetary heart.
“The Bay Area’s considerable lead likely reflects not just the dominance of tech in its economy and workforce, but also its position as the nucleus for the industry’s top talent and the corporate giants that rely most heavily on their expertise.”
The Bay Space’s notoriously excessive actual property costs may be an element, in keeping with the report. With skyrocketing housing costs squeezing out low- and middle-income earners, whereas discouraging newcomers, “high earners account for a greater share of the population than they would otherwise,” the survey mentioned.
Methodology
The survey relied on a pattern consisting of a whole lot of tens of millions of lively and anonymized ADP payroll data spanning the interval of July 1, 2023, to June 30, 2024.