Tech Revival Lifts Silicon Valley

Silicon Valley is inching ahead of the rest of California, showing the best signs of life in the state's still-ailing $1.9 trillion economy.

Over the past six months, the unemployment rate in the technology-heavy Northern California region has eased more quickly than the rest of the state as local companies such as Brocade and Juniper Networks Inc. have ramped up hiring and expanded operations. Economists say Silicon Valley's revival is likely to have some spillover effects into other parts of the state's economy. A decade ago during the late 1990s tech boom, Silicon Valley's growth fueled a construction boom around the region and beyond as people moved to homes in the area to commute into the Valley.

It remains unlikely that the entire state -- which comprises many other sectors including agriculture -- can ride Silicon Valley's tech wave to a full recovery. California's economic problems are too big. Earlier this month, governor-elect Jerry Brown gave a grim assessment of the state's prospects, warning the budget shortfall over 19 months could be larger than expected at $28.1 billion instead of $25.4 billion.