Despite headlines of massive layoffs throughout the tech industry, IT professionals are still enjoying high salaries as inflation and a high demand for IT talent are driving up salaries, according to a new study of compensation in the industry from Janco Associates.
The Park City, Utah IT consultancy found that median salaries in the IT industry now exceed $101,000, with all salaries for IT pros in large enterprises increasing an average of 3.61%. That is largely due to major increases at the staff level, with staff salaries rising just over 5% to an average of $82,636. Large enterprise IT executives and middle managers, meanwhile, saw increases of 2.95% and 2.84% to about $180,000 and $99,000, respectively.
At smaller companies, IT salaries increased 7.74% across the board, with slightly greater increases for IT executives, who saw their pay rise 8.68% to $159,925. Middle managers and staff-level positions at SMBs also saw their salaries increase by at least 7.21%, although salaries remain around the same as their large enterprise counterparts.
According to Janco Associates CEO M. Victor Janulaitis, over 190,000 new jobs were added to the U.S. IT job market, which now sits at over 4 million jobs. This comes despite several public layoffs from large tech companies such as Twitter, Amazon, Microsoft, Meta, Salesforce, Vimeo and others. The demand for skilled IT professionals still outpaces the supply of qualified workers, Janulaitis says.
“Our data show that there are close to 200,000 IT jobs that remain unfilled due to lack of qualified candidates.,” he says. “Interestedly, IT Pros in mid-sized companies were able to see median salaries exceed the inflation rate.”
In fact, hiring new technical skills is the top IT staffing issue identified by the consulting firm, followed by retaining existing staff, improving existing staff skills and improving employee morale.
Hiring for IT professionals remains strong, but many critical jobs are going unfilled due to a lack of skilled candidates, and CIOs and IT executives continue to report a shortage of qualified workers, especially as organizations are expanding the role of IT in day-to-day operations.
“They have moved e-Commerce, security, social media engagement, and digital presentation to be top agenda items,” Janulaitis says. “That impacts the governance of Information Technology.”
IT trade associaiton CompTIA last week said its own numbers concur that tech hiring remains strong, with the industry adding 17,600 workers in December, with job gains recorded in four of five sector categories.
Employers throughout the economy added an estimated 130,000 tech workers in December, helping to drive down the tech occupations unemployment rate to 1.8%, compared to the overall national rate of 3.5%, according to CompTIA research.
Job postings for future tech hiring declined for the second consecutive month, but still totaled more than 246,000 in December. Positions for software developers and engineers accounted for nearly 30% of last month’s jobs postings. IT support specialists, IT project managers, systems engineers and network engineers were also in demand, according to CompTIA.
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