Announcement and Shortlist
On January 18, Amazon announced the shortlist for its second headquarters. From 238 responses to its proposal, it selected 20 cities and metro areas. This much anticipated announcement highlighted:
- Atlanta
- New York
- Boston
- Austin
- Montgomery County (Maryland)
- Washington, D.C.
- Northern Virginia
These regions—often called the Amazon HQ2 cities—have drawn national attention.
Summary
- Amazon named 20 HQ2 finalists and will conduct deeper evaluations of each proposal.
- The winning city could gain 50,000 high-paying jobs.
- Competition for already scarce tech talent will intensify amid low unemployment and rapid growth in roles like software development.
- CIOs in these markets should reassess strategies—relocation, reskilling, and tapping untapped talent pools—while expanding industry–education partnerships.
- Despite hiring challenges, HQ2 would bring substantial economic benefits to the selected community.
Selection Process and Timeline
As cities competing for Amazon HQ2 move on to the next phase, Amazon plans a deeper dive into each city’s proposal, requesting additional information and “an evaluation of the feasibility of a future partnership that can accommodate the company’s hiring plans as well as benefit its employees and the local community.” Amazon expects to select the location for HQ2 later this year.
Implications for CIOs
While the finalists celebrate—and others assess how to make their regions more attractive—CIOs in these cities should reflect on what being selected for HQ2 could mean for their workforce strategies going forward.
Scale of Hiring and Talent Shortage
Amazon has said it plans to employ 50,000 people at HQ2. While these roles will be high-paying, Amazon has not identified the workforce composition and hiring plans. Many will be technical jobs. With employment growing across the U.S., the nation’s pool of tech talent may be nearing its limits—a clear sign of a tech talent shortage.
Labor Market Signals
- In Georgia, where the unemployment rate hovers at 4%, employers post a daily average of more than 5,000 openings for IT jobs, according to the Technology Association of Georgia.
- The Bureau of Labor Statistics projects employment of software developers to grow 24% through 2026, faster than average for all occupations, underscoring ongoing software developer job growth. Source
Building the Pipeline: Education Partnerships
Many companies are experiencing the tech talent gap first hand and are working directly with schools to ensure training meets future workforce needs. For example, partnering with the Trump administration, some technology companies recently pledged $300 million for computer science education to help prepare students for tech careers. Source
Strategies CIOs Should Consider
Key tactics include:
- Relocating tech talent from other markets
- Reskilling current employees
- Leveraging untapped but highly skilled labor pools
Economic Benefits for the Selected City
For the selected city, these are good problems to have. Hosting a tech giant will create opportunities for local and surrounding communities through job creation, positive impacts on real estate, and spending that supports local businesses.
Q&A
Which cities made Amazon’s HQ2 shortlist, and what’s the selection timeline?
Answer: Amazon narrowed 238 proposals to 20 finalists, highlighting regions like Atlanta, New York, Boston, Austin, Montgomery County (Maryland), Washington, D.C., and Northern Virginia. Amazon will now conduct deeper evaluations of each proposal—assessing feasibility, partnerships, and community impact—and expects to choose the HQ2 location later this year.
How many jobs would HQ2 bring, and what kinds of roles are expected?
Answer: Amazon plans to employ about 50,000 people at HQ2, and has said these will be high-paying roles. While it hasn’t detailed the exact workforce composition, many are expected to be technical positions given Amazon’s business needs.
Why will HQ2 intensify competition for tech talent in finalist cities?
Answer: Tech talent is already scarce amid low unemployment and fast-growing demand. For example, Georgia’s unemployment rate is around 4% and employers post more than 5,000 IT openings daily, while software developer roles are projected to grow 24% through 2026—trends that signal a tightening market HQ2 would further strain.
What should CIOs in these markets do to stay competitive?
Answer: Reassess workforce strategies now—consider relocating talent from other markets, reskilling existing employees, and tapping into underutilized but highly skilled labor pools. Strengthening industry–education partnerships is also key; many companies are already working with schools, including recent pledges of funding for computer science education, to build future pipelines.
What are the potential benefits for the city ultimately selected?
Answer: Despite hiring challenges, HQ2 would be a net positive—creating tens of thousands of jobs, stimulating real estate development, and boosting spending that supports local businesses—offering broad economic gains for the community and surrounding region.
