The Best And Worst States For Technology Careers – Forbes Advisor – Technologist

There’s no place quite like San Francisco. With its dizzying hills, pastel Victorian houses and fog-shrouded bridges, the Californian metropolis makes for perfect postcards.

But beyond its old-world charm and chilly summers, the San Francisco Bay Area is famously known as the global center of tech innovation. Ask anyone who’s taken a self-driving car through the streets of downtown: Nearly every billboard boasts software solutions, AI-powered platforms or, conversely, platforms that will tell you if something was created with an AI-powered platform.

Given San Francisco’s reputation, California is usually the state that comes to mind when people think of technology career hubs. But if you’re after a career in technology, you don’t necessarily have to flee west. In fact, California doesn’t even rank among the top three U.S. states for tech careers.

In this article, we’ll dive deep into the best states for tech professionals. We’ll also explore areas where tech employment is flatlining. Keep reading to discover the best and worst states for technology careers.

Careers in Technology on the Rise

• Ninety-two percent of jobs require digital skills.^[3]
• Nearly half of tech professionals worked remotely as of May 2022.^[4]
• Computer and IT occupations are projected to grow much faster than all occupations nationwide.^[5]

Technology is a fast-paced field, and tech jobs are expected to grow rapidly compared to the average projected growth rate for all U.S. occupations. According to the U.S. Bureau of Labor Statistics (BLS),^[5] roughly 377,500 new technology jobs will open each year between 2022 and 2032. And with the proliferation of online information technology degrees and coding bootcamps, obtaining the skills needed to enter the tech industry is easier than ever.

Jobs in tech generally afford workers top-notch flexibility, as many of these positions can be completed from home—or anywhere with a stable internet connection. Plus, remote jobs give tech employees the flexibility to work while traveling the world (or staying put on the couch).

Moreover, tech is a relatively lucrative career. The BLS reports that the mean national wage for computer and mathematical occupations is $108,130.^[5] In some states, as we’ll see below, mean annual salaries for tech workers are even higher.

The Best States for Tech Careers

The table below lists how each U.S. state ranks for tech careers based on a methodology that accounts for the number of tech businesses in the state, wages for tech jobs, tech employment and economic growth. We sourced data for this table from the U.S. Census Bureau,^[6],^[7] the BLS^[1] and the U.S. Bureau of Economic Analysis.^[8]

Top-Ranking States for Tech Careers

1. Washington, D.C.
2. Colorado
3. Washington
4. California
5. Virginia

Washington, D.C., ranked as the best place for pursuing a tech career. It’s home to some of the highest-earning tech workers in the nation, with a mean annual salary of ​​$119,610.^[1]

While tech workers earn a higher mean salary in a few states, Washington, D.C., cultivates a highly favorable climate for tech workers. A little over 7% of the total workforce is employed in tech—more than any state in the country.^[1] Additionally, Washington, D.C., exhibited strong GDP growth over the last five years.^[8]

In Colorado, tech workers make an average of $116,620 per year.^[1] The state’s GDP expanded significantly in the last five years, and tech workers make up about 4.7% of the state’s total workforce.^[8]

Tech workers earn some of the highest annual mean salaries in Washington and California: $129,870 and $143,670, respectively. While California is certainly a tech epicenter, Washington outpaces the Golden State with its percentage of workers in tech. Six percent of Washington’s employed population works in tech, while California’s hovers at just under 4%.^[1]

In Virginia, tech workers earn an annual average of $118,100. About 6.2% of the total workforce is employed by tech companies,^[1] and the state GDP grew by 8% in the last five years.^[8]

Worst States for Tech Careers

• Indiana
• Montana
• North Dakota
• Mississippi
• Louisiana

In Indiana, tech workers bring home a mean annual salary of $80,870 and make up only 2% of the state’s total workforce. Tech workers in Montana and North Dakota earn average annual salaries of $83,300 and $76,900, respectively. In both states, just under 2% of the total workforce is employed in tech.^[1]

Despite their strong GDP growth, Mississippi and Louisiana are the two worst states for tech jobs in the United States. Workers in these states earn mean annual salaries of $75,840 and $78,720, respectively. In both Mississippi and Louisiana, only 1.2% of the total workforce is employed by the tech industry.^[1]

States Where Tech Workers Earn the Most Money

The table below outlines the top 10 states where tech workers make the most money, accounting for both median hourly earnings and mean annual earnings.

Nationwide, tech workers earn a mean annual salary of $108,130. Average tech salaries in all of the 10 states listed below exceed the national mean. Tech workers in California are the highest earners, bringing home an average of $143,670 per year. The median hourly wage for tech workers in California is $61.87—much higher than the national median of $48.29 per hour.^[1]

Delaware tech workers are the 10th-highest earners in the nation. They bring in a mean annual wage of $109,040. Median hourly earnings in Delaware amount to $50.75.^[1]

Across the other eight states, mean annual earnings range from $114,360 to $129,870. Median hourly wages range from $51.19 to $61.64.^[1]

States With the Highest Rates of Female Employment in Tech

Though the tech industry is predominantly male, some states outperform others in employing female-identifying workers. We sourced data for this section from the U.S. Census Bureau,^[2] which limits its data reporting to male and female identities.

Nationwide, roughly 74.1% of tech employees identify as male, while only 25.9% identify as female.^[2]

The following table lists the 10 states leading the nation in the employment of female-identifying tech workers. Alaska tops the charts, with 37% of the tech workforce identifying as female.^[2]

In Maryland, Delaware, Louisiana and Kentucky, female tech workers make up around 29% of the total tech workforce. In Washington, D.C., the tech workforce is 31.6% female. In Vermont, North Dakota, South Dakota and Hawaii, the percentage of female tech workers ranges between 32.5% and 35.5%.^[2]

Sources

1. U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics
2. U.S. Census Bureau American Community Survey
3. National Skills Coalition
4. Morning Consult Pro
5. U.S. Bureau of Labor Statistics Occupational Outlook Handbook
6. U.S. Census Bureau, State Population Totals and Components of Change
7. U.S. Census Bureau County Business Patterns Survey
8. U.S. Bureau of Economic Analysis

Methodology

To determine the best states for tech, Forbes Advisor compiled and analyzed a number of government datasets.

From the Census Bureau’s latest County Business Patterns data,^[7] we used the number of business establishments that the CBP had classified as within the “Information” industry (NAICS Code 15). We also used the total number of business establishments to determine the concentration of tech businesses in the overall economic landscape of each U.S. state.

For tech workforce metrics, we used the U.S. Bureau of Labor Statistics’ 2022 data to identify employment per 1,000 jobs in each state, along with median hourly wages and the percentage of the workforce employed by each sector.^[1] We then compared these metrics between “All Occupations” and “Computer and Mathematical Occupations.”

Finally, we referred to the Bureau of Economic Analysis for data on each state’s overall GDP growth over the five years between 2018 and 2022 to give an indication of broader economic performance.^[8]

Frequently Asked Questions (FAQs) About the Best and Worst States for Technology Careers