Wage growth rates in many occupations have been low or stalled.

The total wages in the tech sector are higher than in other areas. The median annual salary for the IT profession is $ 88,240 – more than double the level of other jobs. However, this does not mean that the industry is growing now. Layoffs accelerated: 64,166 jobs were cut in 2019, up 351% from a year earlier. According to Challenger, Gray & Christmas Inc., this figure is three times the number of new hires planned. However, Challenger, Gray & Christmas Inc. found that IT employment fell 34% from 2014 to 2019 – an interesting trend for the industry.

Average salary growth year-on-year

Source: Rachel Rosenthal, Bloomberg 

Valdis Vuldorfs, a trader with many years of experience, comments:

“The fact that the average salary of IT specialists is higher is also understandable, firstly, these are the fastest growing industries along with healthcare (in the USA), and secondly, the factor of complexity of the selection of the right specialist also affects (for example, a programmer who knows a little Java, Python languages, C +, Basic, as well as databases – these are all different qualities / knowledge and sometimes it is extremely difficult to find a specialist exactly for what you need, and you, as an owner, are forced to either have an army of “one-button” IT specialists with a minimum salary, or one but much more experienced and, accordingly, better paid. “