When there is a surge in the demand for a particular job, there is usually a corresponding rise in wages. This is especially so when there aren’t enough workers to fill these vacant positions.

Since before the Covid-19 pandemic, there has been a rising demand for tech talent across the globe. This is because technological advancements have been driving innovation in every industry.

As the Covid-19 pandemic started, the demand for tech jobs increased at a faster pace than it had since the beginning of the 21st century. 

Reasons Behind the Rise in Tech Jobs 

A lot of jobs were affected by the Covid-19 pandemic when major cities implemented lockdowns to curb the spread of the virus.

Many companies had to let go of a significant portion of their staff just to stay afloat. Some shut down completely while others filed for bankruptcy.

Tech firms and other companies that don’t rely on daily face-to-face interactions started using tech tools for remote work. These tech firms could easily do all their activities from the comfort of their homes while continuing to make a profit.

All the companies that started working remotely needed technological innovations to succeed and maintain their virtual workspaces.

To this end, work-chat and video conferencing platforms have been on a steady recruiting spree since the Covid-19 pandemic started.

Zoom, Microsoft Teams, Slack, and many other similar apps have been hiring software engineers like mobile app developers, web developers, and other tech experts with exceptional skills. 

Tools for remote work aren’t the only ones that have grown in popularity during the pandemic. Social network sites like Facebook, WhatsApp, Instagram, and Twitter have reached their all-time high in terms of traffic.

This is because a lot of people haven’t been going to work and other forms of socialization have been restricted. The only way to keep busy and stay in touch with family and friends is through social networking sites.

These tech sites have also been employing programmers and cybersecurity experts to work on increasing their bandwidth, as well as ensuring security.

You can understand why the demand for tech workers has increased significantly in 2021, but how has this affected tech salaries? 

Tech Firms Threaten Workers in Silicon Valley With Salary Cuts 

As stated above, the rise in the demand for jobs is usually followed by a rise in salaries. Many tech workers have reportedly received salary raises of over 10% since the beginning of the pandemic.

Their companies have offered them more money because they’ve been working extra hours just to meet up with the rising demand. Many tech workers also received holiday bonuses for their hard work throughout the year.

However, the story is different for those who decided to move from Silicon Valley to other cities while continuing with their jobs remotely. 

Silicon Valley is the foremost tech hub in the United States, if not the entire world. There are over 2000 tech firms in the city and almost all of them fled from their physical offices and migrated to remote workspaces.

Twitter and some other companies have announced that the migration to remote work will be permanent. Since remote work is now an option for many of these tech workers, they are opting to leave the Valley for more affordable cities like Houston and Denver. 

Why are tech workers leaving the Valley if it is such a “tech hub”? The answer is simple: these workers are tired of spending almost everything they earn on living expenses.

The cost of rent, food, and everything else in Silicon Valley is incredibly high. It is the most expensive place to live in California and the second most expensive in the United States.

The average tech worker in Silicon Valley earns around $155,000 yearly but it still isn’t enough to enjoy a luxurious lifestyle in the city.

Tech companies are now threatening to slash the salaries of every worker who decides to relocate. They will continue with their jobs but they will have to accept 10% to 20% less money. 


If tech companies in Silicon Valley make good on their threats to cut the salaries of all those who relocate, the result might be catastrophic.

Many of these workers aren’t willing to back out from leaving Silicon Valley to cheaper states but they also aren’t willing to accept salary cuts.

This is going to increase the tension between tech firms and their beloved workers who always get special treatment. In the coming year, everyone will get more clarity about what will happen in the Valley.

As one of the leading engineering staffing agencies, Apollo Technical recruits engineering, design, and IT Talent. Contact us about our Engineering recruiting services or IT staffing services for more information.