After slowly climbing up the ranks, metro Denver is now the top location in the nation when it comes to momentum in adding jobs in science, technology, engineering and mathematics, according to the 2021 STEM Job Growth Index from RCLCO and CapRidge Partners.
Denver ranked eighth on the index in 2018, fifth in 2019 and third in 2020, and this year ended ahead of tech havens Seattle, Austin and San Francisco. The index, in its fifth year, claims to go beyond capturing where STEM jobs are concentrated to predicting where they will be most likely added in the years ahead.
Denver, Austin and Baltimore are three metros with strong momentum that are expected to remain leaders in the STEM field well into the future, according to the index.
“While there are many factors that contribute to success in a local economy, the presence and growth of STEM employment is important to consider due to the generally high-paying nature of those jobs, as well as the higher rate of employment in those fields,” said Gregg Logan, managing director at RCLCO, a real estate consulting firm, in an email.
STEM jobs pay an average of $89,780 a year compared to non-STEM jobs at $40,020. They are also more resistant to economic shocks. STEM unemployment peaked at 9% in 2020, while unemployment for non-STEM jobs went as high as 16%.
STEM jobs also have a higher “multiplier,” which is a measure of the additional jobs created in supporting fields. Each STEM job on average contributes to four additional jobs. Manufacturing, by contrast, has a multiplier of 1.4. STEM jobs are being added at a faster rate than jobs overall in the U.S. economy, with nearly half of STEM positions in the computer field and 18.2% in engineering.
Cities with momentum in STEM jobs are likely to see higher job growth overall, a rising standard of living, and a greater ability to attract more highly-educated workers from other locations.
Denver showed strong performance in areas like STEM wages, young professional growth and ranked ninth in its location quotient, a measure of where STEM jobs are concentrated, but one measure did flash a warning sign.
“Looking beyond this year, it should also be noted that, from a cost of living perspective, Denver is more expensive than the average across other metropolitan areas. This Quality of Life metric could be an important factor to watch moving forward, relative to the continued momentum of STEM job growth in Denver,” Logan said.
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