Divided Silicon Valley has conditions for instability and revolt

The 2025 Silicon Valley Index reveals a dramatic influx of foreign workers, as local labor forces age and exit the region due to escalating housing and healthcare costs. This demographic shift, influenced by the rise of remote work, poses significant challenges for the Valley's economy. The report highlights a stark wealth disparity, with 30% of households struggling to meet basic needs and 37% of children living in food-insecure environments. Despite positive indicators like a record number of patents awarded, overall job growth remains stagnant, and major tech companies are increasingly establishing offices in other locations. CEO Russell Hancock warns that these conditions could incite social unrest, as nearly half of residents consider moving away from the high-cost region.

The report also notes a 20% office vacancy rate, the highest since the dot-com crisis, reflecting ongoing shifts in work habits. As birth rates decline and the elderly population grows, the Valley faces unique demographic challenges. Hancock attributes the housing crisis to rising labor costs, further complicating the region's economic landscape.