Every year more tech jobs are added and not that many more people get into tech. The demand for tech workers starkly outpaces supply, especially in the United S

Every year more tech jobs are added and not that many more people get into tech. The demand for tech workers starkly outpaces supply, especially in the United States. On top of this this a small number of companies operating in the Bay Area now make up a sizeable chunk of the global economy. Their revenues and profit margins are so large that they can afford to pay sums that are quite high compared to what other employers were typically used to paying. These large tech companies also have effectively an unlimited demand for talent so this drives up prices quite a bit, especially at the top of the market. People in tech often have pretty comfortable jobs too. Switching costs are high. They already have a good job, they might even already have a great job - it's hard to lure people away from that.