Technology Wages Take a Step Backward
PHILADELPHIA, December 10, 2004 – Wages for technology workers dropped 3.7% at the end of the third quarter, compared to the same period in 2003, according to the Yoh Index of Technology Wages.Three primary trends have contributed to this drop in technology wages:
- An increase in production-oriented jobs resulting from increased activity in manufacturing markets that employ lower-paid technology workers than R&D and other technology markets
- Telecommunications markets continue to soften due to market overcapacity
- A seasonal drop in technology wages (as experienced over the last two years), ranging from 1% to 3%
These results are further supported by two leading market analysts. The Bureau of Labor Statistics recently reported that while the domestic economy is growing, real wages are contracting. Also, Meta Group projects a drop in IT labor costs in 2005.
A few markets have experienced slightly increased technology wages in the past quarter, including the Pacific Northwest, Southern California and Midwest (Ohio, Michigan and Indiana).
"This is always an interesting time of the year, given the seasonal and workplace trends that come into play," says Jim Lanzalotto, Vice President, Strategy and Marketing for Yoh. "Even though strong hiring manager demand and customer activity has not yet translated into increased wages, the data we have analyzed and historical wage trends leave us confident that wages will improve in the near-term."
About Yoh Index of Technology Wages
The Yoh Index of Technology Wages is based on a quarterly sample of the temporary technology labor pool being utilized by more than 1,000 businesses in the aviation, engineering, IT, manufacturing, scientific, telecommunications and utility communities. This quarterly sample encompassed more than 5,000 technology workers. The Yoh Index of Technology Wages provides a unique barometer of the changes in employer demand and supply of technology talent nationwide. For more information please visit yoh.com/yohindex.
Intended for reference only. Yoh does not make any warranty, expressed or implied, or assume any legal liability or responsibility for the completeness, usefulness, accuracy or quality of the information provided. While reasonable efforts have been made to ensure the accuracy of the information provided, the information is subject to change without notice and cannot be guaranteed to be current.
