The lack of skilled IT workers is hurting the deployment of emerging technology, according to a new survey from Gartner. In areas from cloud to cybersecurity, this crisis is expected to last for years to come.
While a single month doesn’t constitute a trend, this slowing pace
of pay growth marks the fourth consecutive monthly decline we’ve seen. Median
pay growth peaked at 3.1 percent year over year in January, but has fallen each
month since — despite a strong U.S. economy edging closer to full employment.
Interestingly, we’re seeing a similar trend in the monthly Bureau
of Labor Statistics (BLS) jobs report. In past research,
we’ve found the Glassdoor Local Pay Reports to be closely correlated with official BLS wage growth
(about a +0.74 correlation).
Needless to say, with millions of U.S. job openings and a 4.4 percent
unemployment rate, today’s lackluster wage growth remains a puzzle for many
economists — most of whom expect to see wages accelerating thanks to today’s
red-hot labor market.
Pay Gains by Metro
Among the ten metros we track, average pay growth was fastest in Los Angeles (up 2.6 percent, to $59,371 per
year), followed by New York City (up 2.3 percent, to $60,639 per year) and San Francisco (up 2.3 percent, to $67,352 per
year).
So far in 2017, Los Angeles has led the pack in terms of pay
growth, rising an average of 3.8 percent year over year during the first five
months of 2017. That’s a trend that’s helping push home prices in Los Angeles
to record levels.
The slowest average pay growth in May was in Houston (up 0.4 percent, to $54,182 per
year). That metro has been hit hard by low energy prices, and has lagged behind
U.S. average pay growth for 17 of the past 18 months. The second slowest pay
growth in May was in Philadelphia (up 0.5 percent, to $53,818 per year).
Jobs with the Fastest Pay Growth
Surprisingly, not a single IT job
made this list. The top ten jobs
with the fastest wage growth in May, compared to a year ago were recruiter,
customer service manager, restaurant cook, warehouse associates, bank teller,
maintenance worker, store manager, cashier, sales representative and registered
nurse.
With
the economy near full employment, employers are relying more on passive job
candidates, putting recruiters in high demand.
Lowest Pay-Growth Jobs
Among
the top ten lowest pay growth jobs a few IT related positions included:
Job Title |
Median Base Pay |
YoY % Growth |
Java Developer |
$71,359 |
-1.9% |
Web Developer |
$63,355 |
-0.2% |
Web Designer |
$48,934 |
0.5% |
Highest Paying Jobs
Jobs with the highest pay growth aren’t
always the ones with the highest
overall earning potential. IT positions included in the top ten were:
Job Title |
Median Base Pay |
YoY % Growth |
Data Scientist |
$94,859 |
2.2% |
Software Engineer |
$86,462 |
3.6% |
Lowest Paying Jobs
Fortunately, this category did not
include any IT related jobs.
All Technology highest and lowest pay-growth jobs include:
Median
Base Pay YoY
Software Engineer |
$ 86,462 |
|
3.6% |
Programmer
Analyst |
$ 68,174 |
|
3.9% |
Web Developer |
$ 63,355 |
|
-0.2% |
Data Scientist |
$ 94,859 |
|
2.2% |
Data Analyst |
$ 58,360 |
|
2.5% |
Java Developer |
$ 71,359 |
|
-1.9% |
Web Designer |
$ 48,934 |
|
0.5% |
How Does it Work?
Glassdoor, Local Pay Reports incorporate millions of salaries
directly collected from U.S. workers by Glassdoor and apply a proprietary
machine-learning algorithm to estimate near-real-time trends in local pay for
ten U.S. metros and the nation as a whole. All
year-over-year estimates for median salary growth are based on 3-month moving
averages.
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