Talent Pool and Skills Availability
Denver’s IT sector is rapidly growing, with a talent pool ranked 8th in North America and a workforce that has expanded by over 12% in recent years. Key in-demand skills include software development (Python, Java, JavaScript), cloud computing (AWS, Azure), data analysis (Tableau, Power BI), cybersecurity, and artificial intelligence.
High educational attainment in Denver (nearly 46% of adults hold a bachelor’s degree or higher) strengthens this talent pool. With strong demand for these skills and a supportive business environment, Denver is an attractive hub for both tech talent and employers looking to leverage digital transformation and infrastructure projects.
Denver Hiring Trends for November 2024
As of November 2024, Denver’s job market exhibits notable trends across various sectors:
Overall Employment Trends
- Job Market Status: Denver has been recognized as the hottest labor market in the U.S., leading in pay growth and hiring rates.
Sector-Specific Insights
- Information Technology (IT): The IT sector shows strong demand for roles in software development, cloud engineering, and data analytics. Skills in Python, cloud platforms, and cybersecurity are particularly sought after.
- Construction: The construction sector is projected to lose 2,300 jobs in 2024, influenced by higher interest rates impacting construction and mortgage-related industries.
- Government: The public sector is expected to add approximately 10,900 jobs in 2024, driven by new state programs in departments like Labor and Employment and Public Health and Environment.
Unemployment Rates
- As of August 2024, Denver’s unemployment rate stood at 4.4%, reflecting a slight increase from previous months. Bureau of Labor Statistics
Work Environment and Preferences
- Hybrid and remote work models continue to be prevalent, with many companies offering flexible arrangements to meet the preferences of professionals.
Average Salaries and Cost of Living
In Denver, the average salaries for IT roles have been increasing steadily to keep pace with the cost of living. The median salary for software engineers, for example, is around $105,000 annually, which is competitive compared to other major tech hubs.
While the cost of living is lower than cities like San Francisco or New York, it’s still relatively high compared to other parts of the U.S., making salary expectations an important factor to consider when planning to move your IT department.
| Job Title | Average Salary ($) |
|---|---|
| Service Desk | $60,000 |
| Desktop Support | $55,000 |
| NOC | $65,000 |
| Systems Administrators | $80,000 |
| Network Engineer | $95,000 |
| Voice and Telecom | $85,000 |
| Cybersecurity | $115,000 |
| Cloud Engineer | $125,000 |
| Database Administrator | $96,000 |
| Technical Writer | $70,000 |
| DevOps | $130,000 |
| Full-Stack Developer | $110,000 |
| Java Developer | $120,000 |
Workforce Preferences and Trends
According to recent surveys, IT professionals in Denver highly value flexibility, with 67% preferring full-time remote work. Career growth opportunities and competitive compensation are also major factors for attracting and retaining talent. Companies looking to establish a presence in Denver should consider offering remote or hybrid work options and focusing on continuous learning and career progression to stay competitive
- On-Site Work: Declined from 83% to 67% of job postings from Q1 2023 to Q2 2024.
- Hybrid Work: Most preferred model, growing to 22% of postings in Q2 2024.
- Remote Work: Stable at 11% of postings; companies prioritize hybrid for flexibility.
Hybrid work is now the most popular setup, showing the highest growth across all experience levels.
Major IT Industries and Employers
Key sectors in Denver include telecommunications, healthcare IT, and financial technology. Companies like Ibotta, Gusto, and Trizic are prominent players in the local tech landscape. Larger firms such as Google and Amazon are also expanding their operations, creating a competitive hiring environment for tech talent.
- Google: Google has a significant presence in the Denver-Boulder area, with a state-of-the-art campus in Boulder that employs over 1,500 people. The Denver office focuses on developing and enhancing Google’s core services like Maps, Payments, and Drive.
- Arrow Electronics: A Fortune 500 company, Arrow Electronics specializes in advanced technology and product distribution across various industries, such as telecommunications, aerospace, and defense.
- Slack: Slack’s Denver office is known for its vibrant, inclusive environment and cutting-edge communication technology solutions. It has a strong focus on developing tools that enhance productivity and collaboration.
- Zoom: With a rapidly growing team, Zoom focuses on communication technology for businesses and personal use. Their Denver office is a key part of their global operations.
- Ibotta: A prominent player in the mobile commerce industry, Ibotta offers cash-back rewards and has a large workforce in Denver, focusing on engineering and data analytics.
- HomeAdvisor: HomeAdvisor, now part of Angi, connects homeowners with service professionals and supports a robust tech team for their platform operations.
- Gusto: Gusto has simplified HR management for companies with a platform that integrates payroll and benefits. They have around 2,400 employees and continue to grow their presence in Denver.
- HubSpot: A leading CRM platform provider, HubSpot has expanded its Denver operations to support a growing base of enterprise and mid-market customers.
Real Estate and Office Space
Office space in Denver is relatively affordable compared to other tech hubs, with the average asking rent around $30 per square foot. The city’s ongoing real estate developments provide flexible options for companies looking to establish a presence or expand existing operations. Areas like LoDo and the Denver Tech Center are particularly popular for tech offices.
Downtown Denver
The central business district featuring high-rise office buildings, corporate headquarters, and coworking spaces. Popular among financial services, law firms, and technology companies.
Denver Tech Center (DTC)
Located south of downtown, the Denver Tech Center is known for its concentration of technology companies, telecoms, and business parks. Ideal for companies looking for modern office parks and easy access to I-25.
LoDo (Lower Downtown)
A vibrant area with a mix of historic and modern office spaces. Known for its close proximity to Union Station and walkable amenities like restaurants, cafes, and entertainment venues.
RiNo (River North Art District)
An emerging hub for startups, creative industries, and technology firms. The area offers a mix of industrial and modern office spaces, with a creative and entrepreneurial atmosphere.
Boulder
Just outside Denver, Boulder is home to several tech companies and research firms, with a strong focus on startups and environmental technology. The presence of the University of Colorado provides a pipeline of talent.
Interlocken Business Park
Located between Denver and Boulder, Interlocken is a prominent business park housing technology companies, software firms, and professional services with easy access to U.S. 36 and proximity to Broomfield.
Highlands Ranch
Located southwest of Denver, Highlands Ranch offers suburban office parks and is a popular location for regional corporate offices and customer service centers.
Most Valuable IT Certifications in Denver
These are the most valuable IT certifications in Denver for boosting your team’s capabilities. Cloud credentials like Google Cloud Architect and Azure Administrator ensure expertise in cloud architecture, while CISSP and Security+ strengthen cybersecurity proficiency. Adding project management and networking certifications rounds out a well-equipped IT team to excel in Denver’s competitive tech market.
| Certification | Description |
|---|---|
| Google Cloud – Professional Cloud Architect | Validates skills in designing, developing, and managing secure, scalable cloud solutions on Google Cloud. |
| AWS Certified Solutions Architect – Professional | Demonstrates expertise in designing scalable cloud systems using Amazon Web Services. |
| Certified Information Security Manager (CISM) | Recognized for managing and overseeing information security programs in organizations. |
| Certified Information Systems Security Professional (CISSP) | Proficiency in designing and managing cybersecurity programs across industries. |
| Project Management Professional (PMP®) | Highly regarded for managing IT projects and demonstrating project management expertise. |
| Cisco Certified Network Associate (CCNA) | Establishes a solid foundation in networking, ideal for entry and mid-level roles in network administration. |
| CompTIA A+ | Entry-level certification that covers essential IT skills like hardware, software, and troubleshooting. |
| Network+ | Validates foundational networking skills and is ideal for network support or administration roles. |
| Security+ | Focuses on core cybersecurity skills, including threat management and risk mitigation. |
| Microsoft Certified: Azure Administrator Associate | Proficiency in managing Azure cloud services, including storage, networking, and security. |
Denver’s Data Center Landscape
Denver is becoming a key hub for data centers, with several major facilities and trends shaping the local market:
CoreSite DE3 Data Center: CoreSite is expanding its Denver footprint with the DE3 campus, adding 322,000 square feet and 60 MW of critical power, connected to their existing DE1 and DE2 centers, ideal for scalable colocation and connectivity solutions. (CoreSite)
DataBank Colocation Facilities: DataBank operates five data centers in Denver, providing 145,530 square feet of space and 24.5 MW of IT capacity, offering hybrid IT infrastructure for secure and cost-effective solutions. (DataBank | Data Center Evolved).
H5 Data Centers Denver: H5’s 300,000-square-foot facility supports high-density IT deployments with advanced cooling and connectivity, emphasizing sustainability through energy-efficient technologies. (Datacenters).
Business Incentives and Taxes
Colorado offers several business incentives that make Denver an attractive location for tech companies. These include tax credits, grants, and support for job creation. The Strategic Fund Incentive and the Job Growth Incentive Tax Credit are popular options for companies considering relocation or expansion.
Job Growth Incentive Tax Credit
A performance-based incentive providing state income tax credits equal to 50% of the Federal Insurance Contributions Act (FICA) paid by the business on net new job growth each year during the credit period.
Enterprise Zone Tax Credits
Businesses operating within designated enterprise zones in economically distressed areas of Colorado are eligible for various tax credits, such as:
- Enterprise Zone Job Training Tax Credit: 12% of eligible training costs.
- Enterprise Zone New Employee Tax Credit: $1,100 per net new employee.
Strategic Fund Job Growth Incentive
Offers a cash payment to businesses that create and maintain new permanent jobs in Colorado for at least one year. This program supports business expansion and relocation efforts.
Manufacturing Sales and Use Tax Exemption
Exempts state sales and use tax on purchases of manufacturing machinery, machine tools, and parts. Businesses in enterprise zones may qualify for an expanded exemption to include non-capitalized equipment and parts.
Advanced Industry Investment Tax Credit
Provides tax incentives to investors who support high-tech and advanced industry companies by helping these companies receive capital from local investors.
Enterprise Zone Commercial Vehicle Investment Tax Credit
Offers a state income tax credit for 1.5% of the purchase price of new commercial trucks, semi-trailers, and associated parts registered in Colorado and used in an enterprise zone.
– Need IT Talent in Denver? Tier2Tek Can Help! –
Finding top IT talent in Denver can be challenging in today’s competitive market. Tier2Tek simplifies the process by connecting you with skilled IT professionals that fit your business needs, whether for cloud solutions, cybersecurity, or project management. Let us help you build a strong team to drive your business forward.