Tech Talent Fuels California's Population Growth Amid Stagnation

Immigration is the Primary Driver of California’s Population Growth MENLO PARK, Calif.—Darren Kimura, CEO of Silicon Valley-based AI Squared, welcomed one of California’s newest residents, Nagendra “Nag” Dhanakeerthi, who had just completed a 16-hour flight from New Delhi. Within two hours of landing at San Francisco International Airport, Dhanakeerthi, the company's newly appointed chief technology officer, was already immersed in a customer meeting. "We paid a lot of money to get him here, so we want our return on investment," Kimura remarked with a smile. This scenario reflects a broader trend in California, where immigration has become the main catalyst for population growth. In recent years, the state has experienced a significant slowdown in natural population increase—births over deaths—and even a decline in domestic migration as many Californians move to other states seeking lower living costs and better career opportunities. However, international immigration continues to play a crucial role in sustaining the state’s demographic and economic vitality. Data from the California Department of Finance shows that between 2010 and 2020, the state's population grew by just 6.1%, one of the lowest rates in its history. This sluggish growth is largely attributed to a declining birth rate and increasing emigration to other parts of the country. In contrast, during the same period, immigrants contributed substantially to the population, offsetting the negative effects of these trends. The tech industry, a cornerstone of California’s economy, is particularly reliant on international talent. Companies like AI Squared often look overseas to find the specialized skills and expertise needed to stay competitive. According to a report by the National Foundation for American Policy, about 38% of Silicon Valley startups have at least one immigrant founder. These individuals bring not only technical skills but also innovative ideas and a global perspective, which are vital for the region's continued success. California's universities also benefit greatly from international students, who contribute to both the educational environment and the local economy. For instance, the University of California system reported that international students generated $1.5 billion in additional revenue in 2019 alone. These students often remain in the state after graduation, further enriching the workforce and stimulating technological advancements. However, the reliance on immigration comes with challenges. The state and federal governments must navigate complex policies to attract and retain talented individuals. Visa programs, such as the H-1B, which allows companies to temporarily employ foreign workers in specialized occupations, are highly competitive and limited. Additionally, there are ongoing debates about immigration quotas and the impact of immigration policies on the tech sector. Despite these hurdles, the benefits of immigration to California are undeniable. International arrivals help maintain a steady population and provide a vital influx of skilled labor, innovation, and cultural diversity. This is especially important for sectors like technology, healthcare, and education, which require a constant flow of new ideas and talents to thrive. Looking ahead, the balance between managing immigration and addressing the concerns of domestic migrants will be critical for California's future. Policymakers and business leaders must work together to create an environment that supports both groups, ensuring that the state remains a hub of innovation and a welcoming place for all. In the meantime, stories like Nag Dhanakeerthi's continue to highlight the importance of international migration to Silicon Valley and, by extension, to the broader economic landscape of California. As long as the state can attract and integrate global talent, it stands to maintain its position as a leader in the tech world.