Economy

Adobe Systems headquarters in downtown San Jose.

The large concentration of high-technology engineering, computer, and microprocessor companies around San Jose has led the area to be known as Silicon Valley. As the largest city in the valley, San Jose has billed itself "the capital of Silicon Valley." Area schools such as the University of California, Berkeley, University of California, Santa Cruz, San Jose State University, San Francisco State University, California State University, East Bay, Santa Clara University, and Stanford University pump thousands of engineering and computer science graduates into the local economy every year.

High economic growth during the tech bubble caused employment, housing prices, and traffic congestion to peak in the late 1990s. As the economy slowed in the early 2000s, employment and traffic congestion diminished somewhat. In the mid-2000s, traffic along major highways again began to worsen as the economy improved. San Jose had 405,000 jobs within its city limits in 2006, and an unemployment rate of 4.6%. In 2000, San Jose residents had the highest median household income of any city in the United States with a population over 300,000, and currently has the highest median income of any U.S. city with over 280,000 people.

San Jose lists many companies with 1,000 employees or more, including the headquarters of Adobe, Altera, Brocade Communications Systems, Cadence Design Systems, Cisco Systems, eBay, Lee's Sandwiches, Sanmina-SCI, and Xilinx, as well as major facilities for Becton Dickinson, Ericsson, Hewlett-Packard, Hitachi, IBM, Kaiser Permanente and KLA Tencor. Other large companies based in San Jose include Altera, Atmel, CEVA, Cypress Semiconductor, Echelon, Integrated Device Technology, Micrel, Netgear, Novellus Systems, Oclaro, Online Trading Academy, Quantum, SunPower, Supermicro, Tessera Technologies, TiVo, Ultratech, and VeriFone. Sizable government employers include the city government, Santa Clara County, and San Jose State University. Acer's United States division has its offices in San Jose. Prior to its closing, Netcom had its headquarters in San Jose.

The cost of living in San Jose and the surrounding areas is among the highest in California and the nation. Housing costs are the primary reason for the high cost of living, although the costs in all areas tracked by the ACCRA Cost of Living Index are above the national average. Despite the high cost of living in San Jose, households in city limits have the highest disposable income of any city in the U.S. with over 500,000 residents.

San Jose residents produce more U.S. patents than any other city. Thirty-five percent of all venture capital funds in the U.S. are invested in San Jose and Silicon Valley companies.

Top employers

As of December 2011, the top employers in the city are:

# Employer # of Employees 1 County of Santa Clara 15,360 2 Cisco Systems 11,600 3 IBM 7,460 4 City of San Jose 6,620 5 San Jose State University 3,100 6 Brocade Communications Systems 3,000 7 eBay 3,000 8 Hitachi 2,900 9 San Jose Unified School District 2,690 10 Xilinx 2,340 11 Sanmina-SCI 2,170 12 Kaiser Permanente 2,120 13 Adobe Systems 2,000 14 Good Samaritan Hospital 1,850 15 KLA Tencor 1,770 16 Comerica Bank 820 17 Polycom 800