Tech workers experience stalled pay rises amid industry shift

Tech workers are facing a slowdown in pay rises as the industry grapples with shifting dynamics following the pandemic-induced upheaval.

According to recent data, the median hourly rate for tech salaries fell by 4.8 percent month-over-month in February, dropping from $59.98 in January.

This decline coincides with a marginal increase of just 0.1 percent in the number of employees in the sector.

Eddie Kowalski, senior insights manager at Employment Hero, told the AFR that this dramatic drop could signal a correction from inflated pandemic-era salaries, fueled by widespread layoffs across the technology sector.

He notes a cycle of fiscal tightening and a focus on short-term profitability, which are now impacting employees’ pay packets.

Tech workers are experiencing a downturn.

Modest growth

Data from job site Seek reveals a modest growth of just 1.9 percent in advertised salaries within the ICT industry over the past year, reflecting the subdued demand for labor.

Recruiters are witnessing persistent supply shortages for certain skills such as cybersecurity, data science, and artificial intelligence specialists.

Overall, while the long-term trend for tech remains one of growth, the industry is experiencing a period of adjustment characterized by slowed pay rises and heightened competition for top talent.

As the sector navigates these challenges, tech workers are advised to remain adaptable and open to new opportunities while recruiters face the task of attracting and retaining skilled professionals in a changing landscape.