Russell Hancock, the President and CEO of Joint Enterprise Silicon Valley, Palo Alto, December 2021. The South Bay economic system and job market are in “surprisingly good condition” in 2022, says Russell Hancock, president of Joint Enterprise Silicon Valley.
SAN JOSE — Russell Hancock, president of Joint Enterprise Silicon Valley, is retaining a detailed eye on the Bay Space’s economic system, monitoring the indicators of its energy and taking inventory of the weaknesses uncovered through the pandemic. The suppose tank that he leads produces common studies in regards to the Silicon Valley economic system and its job market, which assist Hancock maintain observe of what’s happening within the area. This information group lately spoke with him about Silicon Valley’s path by means of the pandemic, the tech sector and the way forward for work.
Q: What’s your common evaluation of the job market within the South Bay and the Bay Space?
A: We're in surprisingly good condition. It’s higher than anyone anticipated.
Q: Why is that the case, contemplating the continuing coronavirus and its variants?
A: We're residence to the tech corporations which have turned out to be important to life through the pandemic. The platforms, the communications instruments, the units, the networks, the electronics and the structure that assist the units and providers we'd like.
Q: What in regards to the tech sector in Silicon Valley particularly?
A: The tech economic system didn't take a success. Tech has had two banner years. Tech is getting document quantities of enterprise capital. We're blowing by means of information for market caps. In each means you may measure it, that is an economic system that's as robust, strong and resilient as any you could find on this planet.
Q: Do areas of concern stay, even contemplating the robust economic system and job market?
A: As an economist, I've to talk with each palms. On one hand, the economic system is robust. However, the pandemic launched ache and struggling, displacement, evictions, starvation. All of these passed off on the identical panorama as that robust economic system.
Q: What are a few of the classes from the pandemic?
A: It laid naked the injustice of our society. The world will not be honest. The individuals who have been essentially the most weak have been the most definitely to lose their jobs, to be furloughed, or to be uncovered to the illness.
Q: Are we in an on-again, off-again financial restoration?
A: Sure we're. The economic system by no means strikes in a straight line. Our broad outlines are shifting in a northeasterly path, up and to the suitable. However the issue is the varied waves of this illness. Now we have had false begins and false stops.
Q: How should the economic system change, how should we modify to take care of the coronavirus?
A: We're coming to comprehend we'll by no means eradicate this illness. Now we have to consider this illness as a brand new species that lives amongst us. Now we have to determine methods to coexist with it. We're discovering methods to try this.
Q: Is the tech exodus actual or is it a fable?
A: The tech exodus is exaggerated.
Q: What makes you say that?
A: The primary query is are individuals leaving the Bay Space? Working remotely doesn’t imply your job has left the Bay Space. These employees will come again to the Bay Space as restrictions are lifted and extra work takes place in particular person. Folks could also be floating round however the jobs have stayed right here.
Q: What about a few of the company departures?
A: In Silicon Valley, now we have had a sum whole of 4 corporations that moved their headquarters out of California. Tesla, Oracle, HPE, Palantir. 4 information factors isn’t sufficient to name that a pattern. And these 4 instances all have distinctive backstories. The CEOs of those 4 corporations that left departed for causes that gave the impression to be private for them. And extra importantly, the workforce didn’t observe the CEOs.
Q: Are you inspired by the massive leases and property purchases by Fb, Apple, Google, LinkedIn, Amazon and others within the South Bay?
A: The industrial actual property exercise reveals the energy of the regional economic system, the attraction of Silicon Valley. It reveals the well being and vitality of those giant tech corporations. It reveals these tech corporations have deep roots. It will be no small factor for them to drag up stakes and go elsewhere. It’s greater than an enormous headcount. They've made huge commitments to Silicon Valley.
Q: Will corporations return to the workplace in a considerable means?
A: Our future is hybrid work. We are going to return to the workplace however we received’t return 5 days every week. Tech corporations will permit workers to create their very own combine. Flexibility in schedules will come to be seen as a employee’s proper.
Q: Is there a method to flip the nook on the area’s housing issues?
A: Our elected metropolis officers are actually referring to the housing scenario as a disaster. For the primary time, our elected officers are beginning to have the heft and the stamina to face down the NIMBY voices within the council chambers. You may have a strident governor and an energized Legislature saying that if cities don’t act, the state will intervene.
Q: What's the outlook for the Silicon Valley economic system?
A: The outlook is brilliant. I'm not a Pollyanna. I'm talking in a impartial, scientific means. Our economic system was on a nine-year tear of progress and growth and the one motive that nine-year tear was terminated was due to the pandemic. Job positive factors are taking place. The tech economic system is doing what's all the time does after a downturn, which is to shift into promising new areas. Restructuring is occurring. However Silicon Valley’s economic system can deal with that. All the basics are in place for extra progress.
RUSSELL HANCOCK
Job: President & Chief Government Officer, Joint Enterprise Silicon Valley and president of the Silicon Valley Institute for Regional Research. Adjunct Professor, Public Coverage Program, Stanford College
Age: 59
Birthplace: Rockledge, Florida
Grew up in: Kent, Washington
Residence: Palo Alto
Schooling: Harvard College, B.A. in Authorities; Stanford College, Ph.D. in Political Science
Household: Married. Three kids, three grandchildren.
FIVE THINGS ABOUT RUSSELL HANCOCK:
1. Married for 37 years to Marguerite Gong Hancock, who's vice chairman of innovation on the Pc Historical past Museum.
2. Is an ordained minister and simply accomplished a nine-year time period in a management position in an area department of the Church of Jesus Christ of Latter-Day Saints.
3. Leads a parallel life as a live performance pianist, showing as soloist with symphony orchestras throughout the US. Founding father of The Saint Michael Trio, artists in residence at Montalvo Arts Middle.
4. Runs half-marathons.
5. Present books: “The Battle for Kindness” by Jamil Zaki, “Truman” by David McCullough, “Why Liberalism Failed” by Patrick Deneen.