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IT workers’ wages to rise only 2.8%

December 20, 2016

Wage increases for IT jobs in recent years have been modest, and the coming year looks to be no different, according to the 2017 IT Salary Report released by Computer Economics. IT workers at the median will receive a pay raise in the neighborhood of 2.8%.

“It’s déjà vu all over again for most IT workers,” said Tom Dunlap, research director of Computer Economics. “Employers are for the most part holding the line on pay increases, hitting about the same number as last year. The improving economy just has not yet translated into significant pay increases for most IT workers. Efficiencies with cloud computing, software-as-a-service, and automation are clearly having an impact on hiring and salaries.”

Although there are always exceptions for hard-to-find skills, the report found IT organizations are not adding greatly to overall headcounts, which is keeping a lid on overall salary increases. The report found only 40% of all IT organizations in the US plan to increase headcount over the prior year, the lowest percentage since 2012, when the US economy was just recovering from the last recession. Moreover, it is well below the 45% to 50% in the pre-recession period of 2003 to 2007.

“Rising IT staffing levels drive increasing IT salaries, but this year the trend appears to be the opposite: restrained hiring means modest increases in IT wages,” the report stated.

The study includes an annual survey gathering data from 102 IT organizations on median salaries and bonuses paid to their IT staffs for positions under study. It also draws on historical data, and data from the US Bureau of Labor Statistics.