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Silicon Valley’s economy this year is continuing to create jobs but at a slower pace, according to a survey released Tuesday.
The annual CEO Business Climate Survey by the San Jose-based Silicon Valley Leadership Group sketches a picture of a strong local economy, according to Carl Guardino, president of the leadership group. But that economy isn’t creating jobs as quickly as it did last year and in 2011.
“If Silicon Valley were a car, the foot is still on the accelerator, but that foot has eased off slightly on the gas pedal,” Guardino said. “The economy is still moving at a robust rate, but not quite as quickly as in the past two years.”
An estimated 46 percent of the Silicon Valley companies that responded to the survey said they expected to increase the size of their local workforce this year, while 10 percent planned to reduce staffing levels.
That is below the 50 percent of responding area companies that expanded staffing levels in 2012, and far below the 60 percent that added jobs in 2011. The survey measured the responses of 177 CEOs and senior officers at companies in Silicon Valley.
“Concerns are continuing to grow about the economy in Europe and the slowing of the pace of growth in China,” Guardino said. “But CEOs are still bullish about innovation and hiring overall in Silicon Valley.”
It’s not surprising that technology companies have scaled back their hiring plans, said Rob Enderle, principal analyst
with San Jose-based Enderle Research Group.
“Companies are just more cautious,” Enderle said. “They don’t want to lay off employees in case there is a significant upturn. And they also don’t want to hire people if things remain uncertain.”
The survey also suggests that job growth in the greater Bay Area and California overall may also slow down this year.