You are on page 1of 55

Beyond the

Talent Shortage
How Tech Candidates Search for Jobs

1 Indeed

For over a decade, both employers


and economists have observed a
persistent talent shortage in tech.
There are many more jobs calling
for software skills than there are job
seekers to fill them. This shortage has
become more pronounced as more
kinds of companies in more locations
are in need of tech talent. How can we
move beyond the skills shortage when
employer demand continues to rise and
candidates take the drivers seat?
The answer lies in identifying opportunities
for better alignment between employers
and job seekers, and in this talent-driven
economy, its up to employers to bridge
that gap. Data from Indeed on how
people search for software jobs and how

Tara M. Sinclair, PhD


Chief Economist, Indeed

2Allcontent
Indeed Indeed Inc. 2015

employers hire them reveals that there are


some disconnects, primarily in location.
While employers are hiring all over the
world, job seekers with software skills are
mainly interested in a select number of
tech hubs. Employers will need to craft
creative strategies to attract job seekers to
the cities where theyre needed while also
offering greater flexibility and opportunity
for this set of in-demand talent. As
software itself becomes more capable,
we can expect new job titles and skills to
emerge. Finding holistic solutions to todays
skills gap will help employers overcome
future challenges in tech hiring as well.

Table of contents
Introduction
The ecosystem of technology jobs has rapidly expanded.................................................. 4
Key Insights
4 trends that dominate tech job search and hiring ............................................................ 6
Where Employers Are Hire Tech Talent
Software expertise is needed worldwide ......................................................................... 15
Measuring Job Seeker Interest in Tech Jobs
Candidates search for different skills in different cities .................................................... 20
Emerging Software Job Titles
The rise of the data scientist ............................................................................................ 25
Employer Insights
How Amazon is confronting the talent shortage in tech .................................................. 33
Bridging the Gap
The mismatch between employers and job seekers varies over title, time, and place..... 38
Appendices
Data and methodology ..................................................................................................... 48
Top 100 global cities by Java job postings ...................................................................... 50
Ranking of US cities by job searches in 2013 .................................................................. 51
Ranking of US cities by job postings in 2013 .................................................................. 52
About Us ............................................................................................................................... 53

Introduction

The ecosystem of technology


jobs has rapidly expanded
In 1968, the NATO Science Committee
held a conference on software engineering,
a term that had recently been coined by
Margaret Hamilton, a NASA mathematician
who was working on the guidance software
that a year later enabled Apollo 11 to land
on the Moon. At the time, computers had
only recently emerged from universities and
laboratories but were quickly spreading
to offices around the world. Computer
science was not a formalized discipline and
the more than 50 experts who gathered in
Garmisch, Germany worried that current
programming practices and languages
would not scale well.
As one conference attendee observed,
In 1958, a European general purpose
computer manufacturer often had fewer
than 50 software programmers, now they
probably number 1,000 2,000 people;
what will be needed in 1978? By 1978
in fact, microcomputers and personal
workstations had appeared on the market,
Apple and Microsoft were beginning to
make their mark, and the context of software
development had changed radically.
Today, companies of all kinds not only
employ software programmers but also

4 Indeed

engineers, web developers, data scientists


and many other types of specialized
technical staff who all work with software.
Computer programs that automate
previously time consuming or even
impossible tasks have spread to nearly
every aspect of life and business, and
with those capabilities has come an
ever-expanding list of job titles.

What is the state of employment in


these fields today?
The public discourse on the topic is
dominated by the skills gap: there are many
openings for specialized roles in technology
and not enough people to fill them. While
this gap stems from a general shortage of
people with software and programming
skills, there is also a mismatch between
how people with those skills search and
where employers are looking to hire.
From our analysis, one overwhelming trend
unites these jobs: the people interested in
using specialized software skills flock to
a small number of tech hubs over other
kinds of cities. In a tight labor market where
candidates are in control, employers will
need to go to these hubs rather than wait

Software jobs are


spread out all over
the world

for talent to come to them. Job seekers


may be attracted to living and working
near people with similar skills and interests
in metropolitan areas that offer many
employment opportunities. In fact, it may be
precisely because employers first clustered
in some cities that drew job seekers, but
now that talent has taken the drivers seat,
candidates interests are the greater force
in the labor market.
Attracting tech talent will increasingly rely
on job seekers preferences, including
being in the locations that appeal to
them most. This may mean setting up
physical presences in these locations but
could also mean that employers recruit in

5 Indeed

Java is the most popular programming


language worldwide. Here is a look at where
jobs calling for that skill are concentrated.

popular hubs despite their companys base


elsewhere, solving the talent gap by offering
candidates the chance to work remotely.
Flexibility is the hallmark of a talent-driven
economy and one thats particularly relevant
for high-skill, in-demand workers. Moving
forward, identifying opportunities based on
how candidates search can help employers
better navigate the skills gap and reach
talent in spite of the shortage.

Key Insights

4 Trends That
Dominate
Tech Job Search
and Hiring

6 Indeed
6 Indeed

Key Insights

Tech talent is
needed all over
the world

1
7 Indeed

Tech jobs are spread out across


the globe and tech talent is
needed by all kinds of employers.
The following list is a ranking of global
cities based on the volume of job postings
calling for Java skills. Worldwide, there are
more than nine million Java developers and
the Tiobe index consistently ranks Java as
the most popular programming language
globally. It is also the most searched for
programming language on Indeed. The
prevalence of Java jobs can be used as a
strong indicator of the tech jobs in a city.

Worldwide Ranking of Cities by Java Job Postings


1. London

6. Lisbon

11. Milan

16. Delhi

21. So Paulo

2. Bangalore

7. Pune

12. Mumbai

17. Warsaw

22. Chicago

3. Beijing

8. Chennai

13. Rome

18. Barcelona

23. Moscow

4. Madrid

9. Hyderabad

14. Paris

19. Mnich

24. San Francisco

5. New York

10. Shanghai

15. Krakw

20. Atlanta

25. Wroclaw

12
8
4
1
8 Indeed

Several other important cities for tech appear


further down the list:

Tech cities in
Europe

26. Berlin
27. Dublin
40. Sydney

Tech cities in
Asia (6 in India,
2 in China)

47. San Jose


59. Austin
89. Seattle

Note: Java consistently ranks among the top


search terms for people searching for a job
outside of their current country. We did not control
for population in this ranking because many of

Tech cities in
the US

these jobs will be searched for and filled by people


outside the local population. The result is that
many high-population cities appear near the top
of the list. Still, there are some surprisingly small
cities among these 25 locations: San Francisco,

Tech city in
South America

for example, is a city of just over 800,000 yet it


appears on this list with cities with populations
above ten million.

Key Insights

In the US,
people are most
interested in a
few tech hubs

2
9 Indeed

While employer demand for tech


workers is spread across the
globe, job seekers who search for
jobs in software are attracted to a
small number of cities.
Using a subset of 18 software-related job
titles, we ranked 25 US cities and three
international cities where English job titles
are used. The ranking is based on relative
job search volume for those jobs in each
city in the first quarter of 2015.

Most popular tech job seeker destinations:

1. San Jose

2. San Francisco

3. Seattle

4. Austin

5. Salt Lake City

12. Denver

19. Phoenix

6. Boston

13. Chicago

20. Houston

7. San Diego

14. Los Angeles

21. Alexandria

8. Arlington

15. Washington DC

22. Kansas City

9. Minneapolis

16. Atlanta

23. Philadelphia

10. Dallas

17. Columbus

24. Orlando

11. New York City

18. Charlotte

25. Indianapolis

San Francisco, San Jose, Seattle, and


Austin took the top spots for the most
popular destinations in both 2013 and
2015. And, the difference between Austin
at #4 and Salt Lake City at #5 is one of the
largest differences on the list, solidifying the
distinction between a hub and other cities
where tech job searches are prevalent.
Throughout this report, we will refer to
these four cities as tech hubs based on
job seeker interest.

10 Indeed

Key Insights

And that interest


is becoming more
concentrated
over time

3
11 Indeed

In 2013, interest in the 18


software-related jobs we
analyzed was 3.3 times greater in
San Jose, San Francisco, Seattle,
and Austin than in the US on
average. In 2015, interest in those
cities was 3.6 times greater.
The following graph depicts how
that interest has grown. The blue line
represents interest in tech hubs while
the other two lines represent the share of
searches for software jobs for the entire
US and then globally across all 55 markets
where Indeed has a site.

In 2015, tech job seekers are nearly 4X more interested in tech


hubs than in the US on average.
Normalized to US = 100 in 2013
Tech Hubs

US

Global

600

450

300

150

0
2013

With the growth of software jobs in all


kinds of businesses all over the world, we
anticipated that job seeker interest would
spread geographically as well.
Job seeker interest may have once been
driven by the availability of jobs, but the
growing interest in tech hubs suggests
further concentration on the part of job
seekers beyond the clustering of job
opportunities. Furthermore, although job
seekers have consistently been focused
on the same top four cities over the past
12 Indeed

2014

2015

three years, the ranking from the employer


perspective has changed over time.
Employer demand for tech jobs is global,
so how can employers all over the world
attract candidates when job seekers
interest is focused on this select group of
cities? Employers may need to consider
opening offices in these select locations,
developing flexible working arrangements
in order to allow talent to work remotely, or
finding creative ways to attract employees
to other locations.

Key Insights

The talent
shortage varies
in size by location

4
13 Indeed

Our analysis of job seeker interest


in tech hubs indicates that the size
of the talent shortage isnt static.
Finding an equilibrium in the tech labor
market is a challenge because employers
needs and job seekers interests are always
shifting. In some cities and for some job
titles, it is easier to hire than in others.
The relative volume of searches and postings
in key US cities for the 18 software-related
job titles we analyzed offers a revealing
picture of that mismatch by location.

10 cities where the talent shortage decreased the most:

There is a talent shortage for softwarerelated jobs everywhere in the US. This
gap between the share of tech job postings
and the share of tech job searches is larger
in some cities than in others, but across
the board, the talent shortage decreased
from 2013 to 2015.
The following numbers indicate the
percent change in that gap for each city.

1. Los Angeles

2. Denver

-51.08%

-49.55%

3. Minneapolis

4. Seattle

5. Austin

6. Salt Lake City

-45.41%

-45.38%

-44.94%

-44.54%

7. Arlington

8. San Francisco

9. Charlotte

10. Indianapolis

-43.36%

-42.26%

-42.07%

-41.98%

14 Indeed

Where
Employers
Are Hiring
Tech Talent
Software expertise
is needed worldwide

A rapid increase in software capabilities


has led to an economic inflection point that
has in turn created a range of new high-skill
technology jobs. The result is that employers
all over the world, both inside and outside
of the tech industry, now need people with
diverse tech skills. Today, most software
developers dont work for a software firm
a global survey from Stack Overflow shows
that only 25% of developers work in the
software industry.

15 Indeed

Where Employers Are Hiring Tech Talent

We approached our analysis of


software jobs in two ways
Job Titles
We looked at a list of job titles related to the creation of software and examined how
employers advertise these jobs. We ranked the popularity of these jobs based on the
volume of searches, globally and in the US.

Programming Languages
Because software-related job titles can be vague, many people in the software field
choose to search for languages instead. We analyzed the searches for these programming
languages and ranked them by popularity, globally and in the US.

16 Indeed

Our analysis in this report is based on these 18 job titles:


Rank by Search Popularity

Global Searches

US Searches

Software Engineer

Software Engineer

Data Analyst

Data Analyst

Quality Analyst

Quality Analyst

Web Developer

Web Developer

Java Developer

Java Developer

Software Developer

Data Scientist

Data Scientist

Software Developer

UI/UX Developer

UI/UX Developer

Front End Developer

Front End Developer

10

.Net Developer

.Net Developer

11

Application Developer

Application Developer

12

Mobile Developer

Mobile Developer

13

Senior Software Engineer

Senior Software Engineer

14

Software Architect

Software Architect

15

Mobile Engineer

DevOps Engineer

16

DevOps Engineer

Mobile Engineer

17

Database Engineer

Database Engineer

18

Senior Software Developer

Senior Software Developer

And these 11 programming languages:


Rank by Search Popularity

Global Searches

US Searches

Java

Java

SQL

SQL

PHP

C#

C#

Python

Python

PHP

C++

C++

JavaScript

JavaScript

Ruby

Ruby

CSS

CSS

10

Perl

Perl

11

Objective-C

Objective-C

17 Indeed
17 Indeed

Where Employers Are Hiring Tech Talent

Job seekers and employers dont


always agree on where software
jobs should be located
To get an indication of where mismatch is
the strongest and where job seekers and
employers are better aligned, we ranked the
following cities based on their popularity
for software job postings and software job
searches. The three largest tech hubs are
cities that are traditionally associated with
this industry: San Francisco, San Jose, and
Seattle. While Austin previously ranked
among our tech hubs for job seekers, this
list provides an example of mismatch with
Boston ranking above Austin for
job postings.
Along with Boston, Arlington (VA) and New
York appear very high in the ranking for
employers. These cities arent traditionally
associated with the tech industry, but
they are cities often associated with other
specific industries: research and academia,
national defense and other government
contractors, and finance and media,
respectively. Job seekers with tech skills
may be underestimating the number of
opportunities those cities offer.

18 Indeed

At the same time, it may be that tech talent


is more interested in smaller cities over
those larger ones. Austin, Salt Lake City, and
Minneapolis all rank higher for job seeker
interest. These cities have a lot of appeal
a lower cost of living for one. But in these
less dense urban areas, candidates will likely
receive fewer competing offers from other
tech firmsa condition that drives up wages
over time.
It is also interesting to note that the top four
cities have stayed the same for job seekers
since 2013, whereas the rankings based
on job postings have shifted more. In 2013,
the top four cities in terms of postings were
ranked in the same order for job seekers.
In 2015, job seekers are showing a slightly
different preference from employers, with
San Jose taking the top spot.

Employer Rank

Location

Job Seeker Rank

Location

San Francisco

San Jose

San Jose

San Francisco

Seattle

Seattle

Boston

Austin

Austin

Salt Lake City

San Diego

Boston

Arlington

San Diego

New York City

Arlington

Atlanta

Minneapolis

10

Chicago

10

Dallas

11

Minneapolis

11

New York City

12

Washington DC

12

Denver

13

Charlotte

13

Chicago

14

Salt Lake City

14

Los Angeles

15

Alexandria

15

Washington DC

16

Columbus

16

Atlanta

17

Denver

17

Columbus

18

Dallas

18

Charlotte

19

Philadelphia

19

Phoenix

20

Los Angeles

20

Houston

21

Kansas City

21

Alexandria

22

Phoenix

22

Kansas City

23

Orlando

23

Philadelphia

24

Indianapolis

24

Orlando

25

Houston

25

Indianapolis

(Postings Per M 2015)

19 Indeed
19 Indeed

(Searches Per M 2015)

Measuring
Job Seeker
Interest in
Tech Jobs

Candidates search for


different skills in different cities
Photo

Candidates for jobs in software often search


by using the programming language in which
they are most proficient or would like to use
in their next job.
We analyzed job search activity for a subset
of programming languages, based on a list
of the most popular repository languages
on GitHub, to find out where people are
interested in finding a job in which they
would use that language. From this analysis,
we learned that job seekers with software
skills are not necessarily searching in cities
with the most tech job postings.
This means that job seekers are attracted to
some locations while employers are trying to
lure them to others.

20 Indeed

Measuring Job Seeker Interest in Tech Jobs

San Francisco and San Jose


top the list for most programming
language searches
Predictably, San Francisco and San Jose
have the highest relative search volumes for
a majority of these languages. The notable
exceptions are PHP, where only one of the
five top cities is a tech hub, and SQL where
Dallas beats out all four tech hub cities for
the top spot. However, three of the five top
cities are tech hubs for all but two of
these languages.
Arlington (VA) and Boston are two
interesting cities to consider. While neither
city is dominated by the tech industry, both
have extremely high search rates for several

21 Indeed

of these languages. Boston ranks in the top


five for five of the languages and Arlington
is in the top five for three of the languages.
The prevalence of tech job searches in
Boston is likely tied to the presence of
more than 100 colleges and universities in
the area. In Arlington, these searches are
likely directed at public sector and defenserelated jobs with employers such as the
Department of Defense, the Department of
Homeland Security, the National Science
Foundation, and Lockheed Martinto name
a few in the greater Washington DC area.

Most popular cities for each


programming language:

CSS

C#

C++

San Francisco

San Jose

Austin

San Francisco

San Jose

Austin

Seattle

Boston

Denver

New York City

JavaScript

Java

Perl

San Jose

San Francisco

San Jose

San Jose

San Francisco

Austin

Alexandria

Austin

Alexandria

Arlington (VA)

Austin

New York City

Boston

San Jose

San Francisco

Arlington (VA)

Seattle

Seattle

Dallas

San Diego

SQL

Python

PHP

Ruby

Salt Lake City

San Francisco

Dallas

San Francisco

Boston

San Jose

Seattle

Arlington (VA)

Los Angeles

Austin

San Francisco

Austin

San Francisco

Seattle

San Jose

Seattle

Denver

Boston

Charlotte

Boston

22 Indeed
22 Indeed

Measuring Job Seeker Interest in Tech Jobs

Growth in programming language


searches reveals which cities
are increasingly attractive for
people with specific skills
Searches for SQL, a programming language
used for managing all types of data, rather
than creating software, are growing fastest
in cities that are typically less thought of as
tech hubs.
Phoenix is the fastest growing city for two
of the most popular languages: Python and
C#. This is impressive growth for Phoenix
because as recently as 2013, the city
ranked very low for the number of language
searches. Today, it has risen to the top
of the list for two of them.
CSS, JavaScript, and PHP all interact with
HTML and are focused on building web
pages and web interfaces. Philadelphia

23 Indeed

is in the top three fastest growing cities


for all three of these languages. This may
indicate that job seekers in the city are more
focused on web programming than other
types of software development. Philadelphia
is experiencing growth for these languages,
but is still third to last of all the cities we
analyzed in terms of searches per million.
Its notable that San Francisco and San
Jose are the top two cities for growth of
CSS searches. While these powerful tech
hubs are clearly dominating the number of
searches for languages across the board,
CSS is the only language where they are
growing more rapidly than other cities.

Cities where interest in these


programming languages has
grown the most:

CSS

C#

C++

Phoenix

Orlando

Washington DC

Kansas City

Dallas

Seattle

Boston

Houston

Indianapolis

Atlanta

JavaScript

Java

Perl

San Francisco

Minneapolis

Alexandria

Arlington (VA)

San Jose

Philadelphia

Charlotte

Kansas City

Philadelphia

San Antonio

Phoenix

Orlando

Denver

Dallas

Dallas

Alexandria

Charlotte

Salt Lake City

Chicago

New York City

SQL

Python

PHP

Ruby

Philadelphia

Phoenix

Orlando

Washington DC

Denver

Charlotte

Charlotte

San Antonio

Arlington (VA)

Minneapolis

Chicago

Columbus

Alexandria

Houston

Philadelphia

Charlotte

Washington DC

Salt Lake City

Columbus

Salt Lake City

24 Indeed
24 Indeed

Emerging
Software
Job Titles

The rise of the data scientist


When creating a software product, some
employees work on the back end while others
work on the front end and the user interface.
Still others are needed to optimize the
product for use on mobile. As teams grow,
employers also need engineering leadership
to manage all these teams.
When software capabilities are built up,
companies end up with a wealth of data
concerning how their products work. Sorting
through this data and gleaning insights that
can be used to improve the technology and
demonstrate its success requires a staff of
its owncompanies need to hire people
who are skilled in maintaining, accessing and
understanding the data. This has resulted in
significant growth for job postings and job
seeker interest in data scientist positions.
This is a job title that has exploded worldwide
in the last three years, with other languages
commonly using the English title.
The following section examines the types of
job titles in high demand by employers today,
the types of skills employers are seeking, and
how these jobs have changed over time.

25 Indeed

Emerging Software Job Titles

The software jobs ladder reveals


the skill level required for each job
We can use the US salary estimates from Indeed to visualize the ladder of software job
titles. Data scientist, a title which did not exist just a few years ago, is now at the top of the
ladder, tied with software architect. Interestingly, two titles which are sometimes confused by
the general public, data scientist and data analyst, bookend our salary ranking.

Average Salaries for Software Jobs (2015)


Data Scientist
Software Architect
Software Engineer
Mobile Engineer
Mobile Developer
UI/UX Developer
Software Developer
Front End Developer
Web Developer
Data Analyst

26 Indeed

$117,000
$117,000
$102,000
$102,000
$102,000
$99,000
$95,000
$95,000
$87,000
$62,000

There is a lot of overlap in the keywords that


are used to describe the roles for software
architects, software engineers, and software
developers, but the salary differences
suggest there are some distinctions. The
primary differences are that architects are
more often assigned management and
leadership tasks, which explains their
higher salary. In general, architects are
asked to lead projects, while engineers and
developers might only work on parts of
those projects.
For example, specific technical skills
appear more often in postings for engineers
and developers: Linux and Python
appear more often in job postings for
software engineers than for architects. For
developers, SQL is in higher demand.
By contrast, the term implementation is
used much more frequently in postings for
architects than it is for either of the other

27 Indeed

two positions. Implementation better


explains the divide between architects and
engineers and developers, as architects
are expected to oversee the successful
completion of a project.
Despite their similar salary estimates, there
are notable differences between software
engineers, mobile engineers, and mobile
developers. Our data indicate that mobile
engineers are more likely to build the
back-end structure of a mobile application
while mobile developers are focused on the
front-end. Mobile engineers are also distinct
from software engineers in general. Job
postings for software engineers focus more
on SQL, Linux, and general analytical skills.
Employers are not in need of those more
foundational programming skills when hiring
mobile engineers and instead need people
who can build programs to run on iOS,
Android, and other mobile operating systems.

Emerging Software Job Titles

Both job seekers and employers


are increasingly interested in
data science
Previous research from the Indeed Hiring
Lab revealed that data scientist was
among the fastest growing job searches
in key cities in the US. While data
analyst has been a common job title in
many businesses, postings for that job
decreased relative to data scientist and
other tech job postings.
While data analysts often come from a
business background, data scientists
are expected to have more experience
in software engineering and statistics.
Data analysts are employed across many
industries and sectors, even in smaller
business that may not necessarily work
with large amounts of data. Data scientists
are more associated with handling big
data and complex sets of information.
Our analysis of the terms used in both job
descriptions highlights that difference.
From this comparison, data scientist
emerges as a more diagnostic role,
one that may entail more management
and strategic direction than a data
analyst position. Terms like algorithm,

28 Indeed

programming, statistics and quantitative


appear much more frequently as do
programming languages such as Java and
Pythonwhile Python appears in 60.2%
of data scientist positions, it only appears
in 5.9% of data analyst job descriptions.
Data analysts are expected to organize
and derive insights from relatively
accessible information. Job descriptions
for data analyst mention terms like Excel,
Microsoft, database and documentation
much more often.
In recent years, as larger amounts of data
have become available to businesses,
people with more of a statistics and
mathematics background have filled
data scientist roles to glean insight from
data using predictive analytics such as
machine and deep learning. The emphasis
on statistics and programming with
Python suggests that they need to tell
sophisticated stories about the data.

These top ten terms differentiate Data Analysts from Data Scientists:

Data Analyst I Share of job postings this term appears in

Data

Analytics

97.6%

84.0%

Database

Software

36.2%

30.9%

SQL

51.7%
Statistics

28.9%

Excel

46.3%
Microsoft

28.2%

Technical

44.2%
Applications

26.9%

Data Scientist I Share of job postings this term appears in

Data

100%
Algorithm

44.2%

29 Indeed
29 Indeed

Analytics

88.8%
Programming

43.7%

Statistics

80.2%
Software

41.9%

Python

60.2%
Technical

40.1%

SQL

48.2%
Java

38.9%

Emerging Software Job Titles

US Salary Trend From


Indeed.com
Normalized to Data Scientist salary, July 2012 = 100
Salary data from the last three years also points
to the more senior role of a data scientist and how
that role has increased in importance and demand
in recent years.

125

100

75

50

Data Scientist

25

Data Analyst

0
Jul 12

Oct 12

Jan 13

Apr 13

Jul 13

Oct 13

Jan 14

Apr 14

Emerging Software Job Titles

Data scientist job postings per


million increased with respect to
all the other software job titles
Today, there are still many more job postings for software engineers than for data scientists,
but postings for data scientists have seen tremendous growth relative to all other software
job titles.
In 2013, employers in the US were looking for 66 software engineers per one data scientist.
In 2015, employers are looking for 21 software engineers to one data scientist. Globally,
that figure is 93 software engineers per one data scientist in 2013 to just 21 software
engineers for every one by 2015.

31 Indeed

Postings per million for data scientist increased (in relative terms)
with respect to other software-related titles in the US
2013

2014

Number of data scientist postings for every one data analyst

2015
8.0
13.6
19.6

Number of data scientist postings for every one software developer

5.3
10.4
16.8

Number of data scientist postings for every one software engineer

1.5
2.9
4.8

Ratio of Data Scientist Postings to Other Software Jobs (x100)

Postings per million for data scientist increased (in relative terms)
with respect to other software-related jobs globally
2013
Number of data scientist postings for every one data analyst

Number of data scientist postings for every one software developer

Number of data scientist postings for every one software engineer

Ratio of Data Scientist Postings to Other Software Jobs (x100)

32 Indeed

2014

2015
6.2
12.2
21.3

2.5
5.8
10.6

1.1
2.6
4.7

Employer Insights

We have to view

technical talent as a
global talent pool.

Susan Harker
VP of Global Talent Acquisition
Amazon

33 Indeed

Susan Harker, Amazon

How Amazon is
confronting the
talent shortage
in tech
From its launch in the mid-90s as an
online bookstore, Amazon has grown
into the largest ecommerce retailer in the
United States. Today, the company drives
innovation in retail and publishing, and
through Amazon Web Services, provides
enterprise services and manufactures and
sells electronic devices.
Each of these endeavors requires a team
of engineers and developers, and Susan
Harker, vice president of global talent
acquisition, is tasked with finding the
people to fill these roles and every other
vacancy in the organization. Tara Sinclair,
chief economist at Indeed, met with Susan
at Amazons Seattle campus to discuss
how the company approaches hiring
34 Indeed

technical candidates in face of a global


talent shortage.
Tara Sinclair: Obviously, Amazon has
been very successful in attracting tech
talent. Id love to start out by asking you
about Amazons philosophy for hiring
and attracting that top tech talent.
Susan Harker: The thing I hear most often
from our interns or when people first
get here, something that they might not
have expected, is that they get a lot of
ownership over what theyre doing. They
have a broader scope to their initial roles
than they have experienced elsewhereI
think thats what our primary attraction
is. People get to work very hard on
challenging problems but they get a lot of
ownership. They get to work more end-toend and they really
like that.
I think Amazon is the right place for people
who want to learn a lot, be challenged all
the time and have a lot of really thorny,

Susan Harker, Amazon

hard problems to solvebecause those


are the ones that are pioneering and
groundbreaking for customers.
How do you communicate that to a new
potential recruit?
I think we need to get better and better at it.
You experience that when you come here as
an intern or as an employee but its a harder
thing to portray in sound bites. I think its
having candidates talk to alumni, helping
utilize a network of people who have done
internships at the company or have worked
at the company, or do work at the company
and really hearing what peoples true
experiences are working here is the best
way to do it.
Were doing some things from an employer
branding perspective in terms of putting
out that message. We have a campaign
right now called Beyond the Badge. Its
people doing short interviews about their
work experience at Amazon. Its just very
authentic, and I think the best employer
brand, if you will, is what peoples actual
experience is.
One thing that really struck me in our
data is that job seekers are still very
locally focused on a few main cities
and particularly here in the US. Now of
course, Seattle is one of them. Are you
guys seeing a similar pattern in terms
of difficulty in attracting talent outside
of Seattle or do you take advantage of
being here in Seattle?
Both. Its very hard to get people out of
the Bay Areaif youre graduating from a
Cal school or youre living and working in

35 Indeed

the Bay Area its difficult to lure you away


from that. Its like going into investment
banking but not going to New York. So,
location is always an issue. When you look
at which offers are declined very frequently,
no matter where you are, you can see that
location becomes an issue for someone
who has to move.
At the same time, I think Seattle has
become a lot more attractive of a location
for people. People ask me if I think its a
bad thing that companies like Facebook,
Google, and Alibaba are coming into the
city. But I think its a good thing. I think
its making us more of a tech center, and
that makes it a lot easier to attract people
to Seattle.
On the other hand, if you really want to be
in Boston or you really want to be in the
Bay Area, we do have opportunities for
technical talent in both those locations and
in a number of locations. I think we have to
view technical talent as a global talent pool.
In thinking globally, outside the US, what
are some key locations that are other
conglomerations of tech talent?
Weve done a fair amount of research
on that and what were trying to be is
thoughtful and strategic, setting up
locations where there already are clusters
of talent. We want there to be opportunity in
these locations, namely a good education
system that can feed that talent.
The problem with having a lot of scattered
sites is if you dont reach critical mass in a
location, its harder for people working there
to have new and different opportunities.
Rather than just try to spread everywhere,

Susan Harker, Amazon

we try to be very thoughtful about where


we can build a location thats going to
give a lot of opportunity for people to
have different experiences and career
advancement without being forced to come
to headquarters.
One other thing that were really seeing
from a lot of job seekers is that theyre
interested in remote and work from home
options. Are you working in that area
at alltrying to balance the benefits of
having people together versus allowing
them the flexibility to work from home or
have a remote position?
You know, I think it depends on where you
are in the cycle. If youre doing scrums
together, you cant be remote. I think there
are types of work that absolutely can be
done from home but what I hear more is
that its less I want to be at home and
its more I want to have some flexibility.
Managers need to have the judgment about
what work makes sense to be done from
home and when people need to be working
together, like doing scrum and things
like that.
Theres a lot of team dynamic in software
development and being able to brainstorm.
Youre a team participant in a scrum. It is
very important. On the other hand, if youre
doing a solo task that requires a lot of
concentration, why not do that from home?
Thats exactly what were seeing in
our data, that these search terms like
remote and work from home are
often proxies for flexibility. Beyond salary
and location, flexibility seems to the thing
that really matter to candidates.

36 Indeed

Well, those are things that are fairly


common denominators for all talent. What I
find for technical people matters more than
anything is the nature of the work and the
types of problems they get to work on: the
impact they can have, the customers they
can touch. When I talk to developers, and I
talk to lots of developers all the time, thats
what they care about.
Tech talentits been in demand. It was
a challenge to hire them even when the
unemployment rate in the US was really
high and now its getting even harder.
Yes, its as you pointed out: even when we
were in recession there was still demand for
this talent and competition for this talent.
We dont have enough of this talent to meet
demand so its going to be competitive.
Unfortunately, I dont see that changing
in the near term. Hopefully it will in the
long term. But you really have to appeal
to what candidates want to do and I think
one of the things thats really meaningful,
and that Id like us to get better at, is really
understanding the particular strengths
of the person and their motivations and
matching them wellreally doing a great
job of understanding them and what theyre
good at and placing them very well in
a role.
We need to get better at that but I dont
see anybody doing that exceptionally well. I
think thats a very meaningful differentiator.
Thats something were working on.

Susan Harker, Amazon

Youre saying that hopefully in the future


were going to be able to bring up the
amount of tech talent. How are you
thinking that could happen and what is
Amazon trying to do to develop
that talent?
Engineering programs are academically very
rigorous. By their very nature, they winnow
out a lot of people. So, I dont think theres
a big mystery to the general shortage, but
I think the answer is a lot more complex. It
takes a confluence of sociological issues
and education issues. I think it involves
just a whole bunch of things that need to
be brought to bear to develop this kind of
talent. More and more skilled talent is in
demand globally, and thats a fundamental
shift in the workforce thats been happening
and will continue to happen.
When I look at public high schools that only
offer one AP computer science class and no

37 Indeed

easy way for others to access that kind of


education, or when I see the fact that were
not offering computer science education in
primary and middle schools...its got to start
with our education system. Its a complex
problem and there are many dimensions to
it so theres not a short term, easy answer
to it either.
What were trying to do is work with
organizations that impact this space such
as Code.org and their Hour of Code, Girls
Who Code, the National Center for Women
and Information Technology, and the
Anita Borg Institute. Were partnering with
organizations that are focused on bringing
talent to the field that has typically not been
coming to the field. I think there are longer
term investments in education and societal
change that need to be driven to reflect a
changing workforce, and thats going to
take governmental, education, and industry
working together.

Bridging the Gap

The mismatch between employers


and job seekers varies over title,
time, and place

Tech job seekers consistently show


greater interest in a small number of
cities. While there are many factors at
play, job seekers are likely attracted to
the variety of job opportunities in these
cities. These same cities rank very highly
for the share of job postings in tech,
but candidates may also value other
amenities tech cities provide, like the
opportunity to interact with many other
people with tech skills.
But even in the cities where tech job
seekers are most interested in working,
there is a talent shortage. There are
promising signs for employers, however.
Job seeker interest does vary by location
and over time which means that this gap
is less out of balance in some places and
at some times. Moreover, the relative
search and postings volumes aggregated

38 Indeed
38 Indeed

for all of our tech titles in each city


offers an overall picture of the
mismatch by location.
The gap between relative postings
and relative searches decreased from
2013 to 2015 in all our of cities, but by
varying degrees. Some cities have seen a
significant decrease in the gap between
postings and searcheseither due to
an increase in job seeker interest or a
decrease in software postings share of
overall postings.
It is crucial for employers to know the
best places to look for talent as they
recruit to stay competitive and on top
of business trends. The following pages
examine the locations where the talent
shortage has widened or narrowed over
the past two years.

Bridging the Gap

The talent shortage is more acute


for some jobs and in some cities
To get a sense of where the talent gap is shrinking and where its
expanding, we looked at key job titles and the change in job seeker
interest relative to job postings over time.
The bar charts on the following pages represent the gap between postings and searches
in a given city. By looking at the cities where searches and postings grew the most, we can
see where this gap is shrinking or getting wider. The line indicating US Average shows
how each of these cities is doing compared to the US on the whole.
In many job titles in many of the cities listed, there are more job postings than searches
from job seekersa favorable situation for candidates as they will find themselves with

many options when considering a job. Still, we saw that in general, the gap between job
postings and job searches shrank over the past two years, which means that interest in

these jobs is growing and employers will have more candidates to choose from today than
in 2013.

Blue indicates the % change in the talent gap in the US overall


Green indicates where the talent gap decreased in a given city
Orange indicates where the talent gap increased in a given city

39 Indeed

Bridging the Gap

Data Analyst

Cities where job searches for Data Analyst grew the most from 2013 to 2015.
In the three cities where job searches grew the most, the gap between searches and
postings got smaller.
% change in US overall
Columbus
Arlington
San Francisco
-60%

-45%

-30%

-15%

% change in gap between searches and postings

Cities where postings for Data Analyst grew the most from 2013 to 2015.

Postings for Data Analyst went up in each of these cities. In Columbus, that meant that the
gap between searches and postings decreased (as it did for the US on the whole). In Dallas
and New York City, however, the gap increased.
% change in US overall
Columbus
Dallas
New York City
-30%

-15%

15%

% change in gap between searches and postings

40 Indeed

30%

Bridging the Gap

Data Scientist

Cities where job searches for Data Scientist grew the most from 2013 to 2015.
In the cities where job searches for data scientist grew, the gap between searches and
postings decreased. This decrease was greater than the US average, a promising sign for
employers in Atlanta, Dallas, and Minneapolis.
% change in US overall
Atlanta
Dallas
Minneapolis
-100%

-75%

-50%

-25%

% change in gap between searches and postings

Cities where postings for Data Scientist grew the most from 2013 to 2015.

In all the cities where postings grew for data scientist, the gap between job postings and
searches decreased. In Chicago, it decreased less than the national average. In Atlanta and
Dallas, it decreased more than in the US overall.
% change in US overall
Chicago
Atlanta
Dallas
-60%

-45%

-30%

-15%

% change in gap between searches and postings

41 Indeed

Bridging the Gap

Mobile Developer

Cities where job searches for Mobile Developer grew the most
from 2013 to 2015.

In the cities where searches for this job grew the most, the gap between searches and
postings decreased. In Phoenix and Minneapolis, this decrease was greater than in the
US overall.
% change in US overall
Columbus
Phoenix
Minneapolis
-60%

-45%

-30%

-15%

% change in gap between searches and postings

Cities where postings for Mobile Developer grew the most from 2013 to 2015.

Mobile usage is growing and demand for developers is rising. In Columbus, the gap
decreased, but not as significantly as the US average. But in Boston and Orlando, the
gap increased, suggesting that growing demand is not attracting enough job seekers.
% change in US overall
Columbus
Boston
Orlando
-50%

-25%

25%

% change in gap between searches and postings

42 Indeed

50%

Bridging the Gap

Mobile Engineer

Cities where job searches for Mobile Engineer grew the most
from 2013 to 2015.
In the cities where searches for this job grew the most, the gap between searches and
postings decreased. In San Francisco and Washington DC, it decreased significantly
more than the US average.
% change in US overall
San Diego
San Francisco
Washington DC
-80%

-60%

-40%

-20%

% change in gap between searches and postings

Cities where postings for Mobile Engineer grew the most from 2013 to 2015.

In San Diego, the gap between postings and searches decreased slightly. In Houston and
Austin, it increased by a significant margin.

% change in US overall
San Diego
Houston
Austin
-25%

25%

50%

% change in gap between searches and postings

43 Indeed

75%

Bridging the Gap

Software Architect

Cities where job searches for Software Architect grew the most from
2013 to 2015.
The gap between searches and postings decreased in these cities. In Minneapolis, this
decrease was less than the US average but in the other two cities it was far greater.
% change in US overall
Minneapolis
Dallas
Denver
-80%

-60%

-40%

-20%

% change in gap between searches and postings

Cities where postings for Software Architect grew the most from 2013 to 2015.

In the cities where postings grew, the gap between searches and postings decreased. In
Austin, this decrease was below the US average. In Boston and Atlanta, it was greater.

% change in US overall
Austin
Boston
Atlanta
-60%

-45%

-30%

-15%

% change in gap between searches and postings

44 Indeed

Bridging the Gap

Software Developer

Cities where job searches for Software Developer grew the most
from 2013 to 2015.
In the cities where searches for this job increased, the gap betweens searches and
postings decreased.
% change in US overall
Charlotte
Phoenix
Denver
-75%

-65%

-55%

-45%

-35%

% change in gap between searches and postings

Cities where postings for Software Developer grew the most from 2013 to 2015.

Cities where postings for this job grew either saw a decrease in the gap between searches
and postings (Boston) or an increase (Alexandria and Orlando).

% change in US overall
Boston
Alexandria
Orlando
-60%

-30%

30%

% change in gap between searches and postings

45 Indeed

60%

Bridging the Gap

Software Engineer

Cities where job searches for Software Engineer grew the most
from 2013 to 2015.
In the cities where searches increased for this job, the gap between searches and postings
decreased. In Dallas, it decreased less than the US as a whole.
% change in US overall
Minneapolis
Dallas
Denver
-80%

-60%

-40%

-20%

% change in gap between searches and postings

Cities where postings for Software Engineer grew the most from 2013 to 2015.

The gap between job searches and postings decreased in all the cities where postings
grew. In Boston, this decrease was less than the US as a whole.

% change in US overall
Austin
Boston
Atlanta
-60%

-45%

-30%

-15%

% change in gap between searches and postings

46 Indeed

Appendices

47 Indeed

Data and methodology

Jobs in the Computer and Mathematical


occupation comprise 8.6% of all jobs on
Indeed based on the first quarter of 2015.
The job titles we selected for this analysis in
this report account for about one-third (31%)
of jobs in that category, representing the
most popular software titles on Indeed for a
representative analysis of the software field.

Data sources
The focus of this report is on the role of
software jobs in todays economy from both
the employer and job seeker perspectives.
Our main source of information was
aggregated and anonymous search and
posting data from Indeed sites in over 50
countries. Global job search and posting
analysis includes activity from all 55
international Indeed sites. Our analysis
pertaining to the United States (US) focuses
on software job postings and interest from
job seekers across the nation as a whole
and also in select cities. We compiled this
list of cities by combining the cities with
the most job postings overall and the cities
with the most job postings inside of the
Computer and Mathematical occupational
category in the first quarter of 2015.

48 Indeed

The job posting data on Indeed includes


millions of jobs from thousands of sources.
It is important to note that Indeed job postings
do not reflect the precise number of jobs
available in the labor market, as an opening
may be listed on more than one website
and could remain online for a period of time
after it has been filled. Moreover, employers
sometimes use a single job posting for
multiple job openings. However, the data do
represent a broad measure of each job titles
share of job openings in the labor market.
To observe changes in the software industry
over time, we focused our analysis on data
from the first quarters of 2013, 2014, and 2015.

Salary Data
All salary data in the report is estimated
by Indeed, as of June 19, 2015.

Software Titles
For our analysis of searches and postings by
job title, we organized the software industry
by 18 distinct job titles. We drew the job titles
from the most popular job titles inside of the
Computer and Mathematical occupational
category, compiling a list that covered most
aspects of the software industry, including
software design, mobile, applications and
data analysis.

Data and methodology

US Tech Hub Ranking Methodology

Worldwide Ranking

Using our subset of 18 software job


titles (listed on page 21), we ranked 25
US cities based on job postings and job
search volume in 2013. For each city we
considered, we calculated the share of
overall job postings for each job title and
then added these shares together so each
city had one number to represent the share
of postings for all software job titles. The
city with the highest software postings
share is ranked first. A similar process was
conducted to arrive at a single number
for the share of overall searches for all job
titles in each city. San Francisco, San Jose,
Seattle, and Austin took the top four spots
in searches in both 2013 and 2015. After
these four there was a substantial drop
in interest. Thus, throughout this report
we refer to these four cities as tech hubs
based on job seeker interest.

To get a better sense of concentrations


of tech interest worldwide, we developed
a ranking of global cities based on the
number of job postings with Java in the
title based on Indeed job postings in the
first quarter of 2015. This ranking does
not control for population, since many of
these jobs will be searched for and filled by
people outside the local population. The
result is that many high-population cities
appear near the top of the list. At the same
time, there are some surprisingly small
cities among these 25 locations.

Programming Languages
For our analysis of job seeker interest in
programming languages we focused on a
set of 11 languages drawn from a list of the
most widely used programming languages
on the web-based repository hosting
service GitHub.

49 Indeed

Top 100 Global Cities by Java Job Postings

This is a list of global cities ranked by the number of job postings calling for Java skills.
Throughout this report, we use this ranking as a rough measure of employer demand for
tech talent in a city.
(Rankings taken from Q1 2015)
1

London

26 Berlin

51 Belfast

76

Porto Alegre

Bangalore

27 Dublin

52 Glasgow

77

Frankfurt

Beijing

28 Cape Town

53 St. Petersburg

78

Turin

Madrid

29 Mexico City

54 Manchester

79

Phoenix

New York

30 Hong Kong

55 Prague

80

Porto

Lisbon

31 Singapore

56 Zrich

81

Navi Mumbai

Pune

32 Florida (AR)

57 San Miguel (AR)

82

Minneapolis

Chennai

33 Washington DC

58 Petah Tikva

83

Makati

Hyderabad

34 Santiago

59 Austin

84

St. Louis

10 Shanghai

35 Don Torcuato

60 Constitucin

85

Sandton

11 Milan

36 Paternal

61 Noida

86

Chongqing

12 Mumbai

37 Boston

62 Charlotte

87

A Corua

13 Rome

38 Gurgaon

63 Gdask

88

Greater Noida

14 Paris

39 Johannesburg

64 Dallas

89

Seattle

15 Krakw

40 Sydney

65 Brussels

90

McLean

16 Delhi

41 Bristol

66 Hamburg

91

Lyon

17 Warsaw

42 Montral

67 Lodz

92

Raleigh

18 Barcelona

43 Ramos Meja

68 Budapest

93

Denver

19 Munich

44 Leeds

69 Sunnyvale (US)

94

Alpharetta

20 Atlanta

45 Edinburgh

70 Amsterdam

95

Reading (UK)

21 So Paulo

46 Jersey City

71 Columbus

96

Rio de Janeiro

22 Chicago

47 San Jose

72 Cambridge

97

Herndon

23 Moscow

48 Saavedra

73 Hanoi

98

Alexandria

24 San Francisco

49 Toronto

74 Ahmedabad

99

Mountain View

25 Wroclaw

50 San Fernando

75 Ho Chi Minh City

100 Tianjin

50 Indeed

Ranking of US Cities by Number of Software Job Searches

This is a ranking of US cities based on the number of job searches for the 18 job titles that
make up this report. The full list of those titles can be found on page 21.
(Rankings taken from 2013)

Number of software job searches


(per million)
1

San Jose

13426.7

14 Chicago

3729.7

San Francisco

10879.2

15 Atlanta

3669.7

Austin

8202.8

16 Los Angeles

3535.5

Seattle

8118.8

17 Houston

3500.9

San Diego

6534.4

18 Columbus

3436.1

Boston

5714.2

19 Denver

3418.2

Dallas

5095.9

20 Charlotte

3320.9

Salt Lake City

5040.0

21 Phoenix

2817.9

Minneapolis

4935.3

22 Kansas City

2779.2

10 Arlington

4887.6

23 Orlando

2671.9

11 Alexandria

4874.1

24 Indianapolis

2569.6

12 New York City

4131.4

25 Philadelphia

2558.6

13 Washington DC

3773.8

26 San Antonio

2320.2

51 Indeed

Ranking of US Cities by Number of Software Job Postings

This is a ranking of US cities by the number of job postings for the 18 job titles that
make up this report.
(Rankings taken from 2013)

Number of software job postings


(per million)
1

San Francisco

149141.0

14 Washington DC 56147.3

San Jose

133114.9

15 Columbus

51314.6

Seattle

126527.8

16 Denver

50510.6

Austin

98513.4

17 Salt Lake City

50181.3

San Diego

90282.2

18 Los Angeles

46917.0

Atlanta

78787.9

19 Dallas

39477.2

Boston

76485.7

20 Philadelphia

38247.3

Arlington

74987.3

21 Kansas City

38057.5

New York City

70599.5

22 Phoenix

35455.6

10 Charlotte

66860.5

23 Indianapolis

33674.3

11 Chicago

66680.2

24 Orlando

29826.6

12 Alexandria

64665.7

25 Houston

24215.3

13 Minneapolis

61511.8

26 San Antonio

18260.8

52 Indeed

About the author

Tara M. Sinclair, PhD, is chief economist


at Indeed and an associate professor of
economics and international affairs at
The George Washington University. Her
research focuses on examining historical
patterns in data to understand both the
current and past structure of the labor
market and to forecast future movements.
Under Taras direction, the Indeed Hiring
Lab is developing original research using
proprietary Indeed data to uncover
exclusive insights into the labor market.

53 Indeed

In addition to conducting her research,


Tara is frequently invited to brief the media
on economic and labor trends as well as
offer commentary. She has been quoted
in the New York Times, the Wall Street
Journal, and the Washington Post, and she
has appeared on CNN, C-Span, NPR, Fox
Business, Bloomberg Radio and TV, and
many other local and international
news programs.

About the Indeed Hiring Lab

The Indeed Hiring Lab is a global research institute committed to advancing


the knowledge of human resource and talent management professionals worldwide.
Contributors
Nayna Ahmed
Daniel Culbertson
Victoria Goss
Eleanor Hooker
Mariano Mamertino
Valerie Rodden
Ryan Sawyer
Andre Szejko

About Indeed

More people find jobs on Indeed than anywhere else. Job seekers can search millions of
jobs on web or mobile in over 50 countries. Each month, more than 180 million people
search for jobs, post resumes, and research companies on Indeed, and Indeed is the #1
source of external hire for thousands of companies.
For more information, visit indeed.com.

54 Indeed

You might also like