San Jose is carving out its place as a leader among U.S. cities, topping the charts for new graduate hiring growth. Data from Gusto, a payroll and management software company, shows a remarkable 13.1% rise in the city’s new grad hiring rate from April 2024 to March 2025.
What’s fueling this surge? A sharp focus on AI is driving both hiring and salary increases across the Bay Area, with San Jose at the forefront. New grads here are seeing starting salaries climb by 7.6% year-over-year, reaching an average of $91,453 as of March 2025. Compare that to the national average of $61,996, and it’s easy to see why San Jose stands out. While hiring for new graduates has dipped nationally—down 16% from 2024 and expected to drop 44% from 2022 levels by mid-2025—San Jose is defying the trend, alongside neighbor San Francisco, thanks to its deep roots in tech innovation.
San Jose State University (SJSU) is a big part of this story. Located in the heart of Silicon Valley, SJSU is equipping students with the skills to thrive in an AI-driven future. From specialized AI courses to hands-on projects and internships, students are immersed in cutting-edge tech—some even contributing to city initiatives. Partnerships with industry giants like Nvidia and Adobe further amplify these opportunities, creating a direct pipeline from classroom to career. This synergy between education and industry is a key reason San Jose continues to lead.
Beyond the numbers, San Jose offers something unique: a front-row seat to the tech revolution. The city’s position in Silicon Valley means innovation is everywhere, especially in AI. Local businesses using generative AI report higher satisfaction with their hires, which speeds up recruitment and boosts the workforce. For new grads, this translates to not just jobs, but careers with real impact and paychecks to match.
Source: SVBJ
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