A recent Wall Street Journal article, sparked by SignalFire’s State of Talent 2025 report, carried a bold headline:
“Austin’s Reign as a Tech Hub Might Be Coming to an End.”
That headline certainly grabs attention, but it doesn’t reflect the full story, especially not for those who are building companies, investing in innovation, and living the day-to-day reality of Austin’s tech community. Because of Austin’s success over many decades, it seems people on the coasts will click on article that proclaims the death or Austin tech, regardless of what is actually happening in the city.
Yes, the report cited a 1.6% decline in Big Tech employment in Austin for 2024. But context matters. From 2018 to 2023, that same Big Tech employment in Austin surged by 44%. After an unprecedented boom, a mild slowdown is expected. This isn’t a collapse , it’s a cooldown (or a blip) after extraordinary momentum. Growth doesn’t follow a straight line, and no city stays in hyperdrive forever.
What the national headlines often miss is the nuance. Much of the migration out of “Austin” is actually into the metro’s booming suburbs. From Round Rock to Cedar Park, Pflugerville to Dripping Springs, Hutto to Kyle, the region is growing. If someone moves from Manhattan to Hoboken, we don’t say they left New York City. The same logic applies here.
The article also mentioned shifts in hiring trends, return-to-office mandates in San Francisco, and the clustering of AI talent in coastal hubs. While those are important trends to track, they don’t negate the deep and diverse tech ecosystem thriving in Central Texas. Austin is not a one-vertical town. Our region is home to:
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Enterprise Software
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Semiconductors
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Med Tech / BioTech
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FinTech
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AI / Machine Learning
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Clean Tech
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Cybersecurity
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EdTech
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Gaming
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Robotics
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Deep Tech and Neurotech
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Smart Mobility
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Quantum Computing (yes, it’s coming)
This is a list that shows a city that is poised for the future. In the 1980s we were a semiconductor town and in the 1990s we are a software city. Now we are those plus so many of these other cutting edge industries.
The SignalFire report, at its core, is about broader macroeconomic employment shifts… it was not an obituary for Austin. But the WSJ piece fixated on a short-term dip and built a narrative that doesn’t reflect the energy on the ground. The quote from one person who said the city “felt dead” is a far cry from what’s happening in the offices, coffee shops, co-working spaces, and labs across the region (I would imagine we could find quotes from people who hated living in New York, Boston, or San Francisco who will say things that make good quotes, but are not really true. But some news reporting seems to no longer be about the truth, it is about how to get clicks to article).
It’s also worth noting that many of the voices quoted in the article represent individuals who moved to Austin during the pandemic, didn’t find what they were looking for, and chose to leave. That’s a narrow lens through which to view an entire city’s trajectory. The data referenced doesn’t account for long-term growth patterns, the continued strength of our suburbs, or the fact that thousands of professionals are still choosing to build their companies and careers right here in Central Texas. Headlines may chase a moment, but Austin’s story has always been bigger than one quarter or one quote.
Over the past 34 years, Austin has experienced growth spurts followed by pauses. Every time, there’s a wave of speculation that the tech boom is over. And every time, the next boom proves them wrong.
From the perspective of the Austin Technology Council, this current moment is not the end… it’s the opportunity. Now is the time to plant roots, build companies, form partnerships, and grow your career. Because history tells us what comes next.
But it is also a wake up call to our community. WE CANNOT TAKE WHAT WE HAVE FOR GRANTED. Austin’s secret sauce was that we had tech industry leaders who showed up in the community and helped make it better. If we fall into the trap of the successful only going to private dinners at steak houses, or drinks by the pool of some hillside mansion…. then we become like every other big city. But that isn’t Austin. We thrive on community, collaboration, and conversations… and we need to embrace that and live by it.
And to paraphrase Mark Twain:
Reports of our death have been greatly exaggerated.