Local Workforce Should Be Innovative and Diverse

Cities are adjusting policies and increasing resources to support economic growth in key sectors such as technology

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What Happened?

Cities are adjusting policies and increasing resources to support economic growth in key sectors such as technology. When attracting high-tech professionals, city leaders should consider diversity in the workforce.

Best Cities for Women in Tech

According to a recent study from Smart Assets, women continue to be underrepresented in the technology industry – currently accounting for just 25 percent of professionals. Of the women who do hold high-tech roles such as software developers, programmers, network architects and information research scientists, most do not receive equal pay or typical benefits.

The study analyzed the number of women professionals in the tech sector in 54 cities across the country. The data showed:

  • 3 of the top 10 best cities for women are on the East Coast: Washington, D.C.; New York City, NY; Philadelphia, PA
  • 3 of the top 10 cities are in the South: Houston, TX; New Orleans, LA; Plano, TX
  • 2 of the top 10 cities are in the Midwest: Kansas City, MO; Milwaukee, WI
  • 2 of the top 10 cities are in the West: Fremont, CA; Tucson, AZ

Furthermore, only two of the 54 cities studied reported women receiving equal or better pay than male counterparts – Kansas City, Missouri, and Arlington, Texas. Across the board, the average pay for women in technology roles was 86 percent as much as men.

Looking ahead, the data suggests the gender gap in technology professions is increasing:

  • Between 2010 and 2013 the number of women in tech increased 4.7 percent while the number of men jumped 7.7 percent
  • Men make up at least 60 percent of the tech workforce in all 54 cities studied
  • Cities known for innovation reported shockingly low numbers of women in tech roles: 37 percent in Washington, DC, and 21 percent in San Francisco, CA

The research indicates cities should not only focus on nurturing a strong tech sector but dedicating resources to diversity the workforce as well.

Best Cities for Women Business Owners

While some cities struggle to attract women in technology roles, others are exceling at supporting women entrepreneurs and business owners. A recent report commissioned by American Express revealed women are starting 1,288 new businesses each day, which is double the rate reported three years ago. Since 1997 women-owned businesses have:

  • Increased by 68 percent
  • Boosted revenues by 72 percent
  • Created 11 percent more jobs

The top cities for women-owned businesses include:

  • Santa Fe, NM: 33.7 percent of businesses are women-owned
  • Boulder, CO: 30.2 percent of businesses are women-owned
  • Monroe, MI: 28.9 percent of businesses are women-owned

Across the country, 9.1 million women-owned businesses were in operation in 2014, up from 8.6 million in 2013. These businesses generate more than $1.4 trillion in revenue, employ 7.9 million people and account for 30 percent of all U.S. companies.

Pittsburgh

The Pittsburgh Regional Workforce Diversity Indicators report analyzed local data on workforce demographics and revealed the city should be doing more to diversify across all industries. While the city has made significant improvements in job creation, employers have not been filling the roles with a diverse array of professionals, The Pitt News reported.

The report found minority workers only hold 11 percent of all jobs while accounting for 13.6 percent of the southwestern Pennsylvania population. A panel of representatives from local organizations reviewed the report and came up with several steps that can be taken to improve local workforce diversity including:

  • Publishing workforce data reports to inform the public and local employers of the need to diversify
  • Using the data as benchmarking tools to build workforce strategies from
  • Collaborate with local universities to engage minority students in local career pathways

The workforce strategies call for collaboration between public, private and academic organizations to encourage more minority hiring throughout the career lifecycle.

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