“US Tech Salaries Decline as UK Sees Growth: Report”

San Francisco, September 24: A recent report has highlighted a significant decline in local tech salaries in the United States, including both fully in-person and hybrid roles, following a year marked by record-breaking inflation and market volatility. The report, conducted by AI-driven marketplace Hired, revealed a year-over-year drop of 3 percent in tech salaries in the US, with figures falling from $161,000 to $156,000.

When adjusting for inflation, the data paints an even more startling picture, as local US salaries hit their lowest point in the past five years, experiencing a 9 percent decrease from $141,000 to $129,000 between 2022 and mid-2023.

In contrast, the UK saw a 4 percent increase in tech salaries year-on-year, rising from £82,000 to £86,000. Despite economic turbulence, jobseekers in both the US and the UK have maintained their salary expectations at $146,000 and £82,000 per year, respectively.

However, the report noted that these figures may not have the impact that candidates would expect when accounting for current market conditions.

Junior talent, defined as those with less than four years of experience, experienced the most significant salary decrease, nearly 5 percent year-over-year. The demand for such roles, as posted on the tech hiring platform, dropped from 45 percent in 2019 to 25 percent in the first half of 2023.

Josh Brenner, CEO at Hired, commented on the changing landscape: “Compared to last year, we are witnessing a seismic shift in tech employee and employer preferences. The surging demand for experienced tech talent on our platform and employers’ increasing reliance on AI tools point to an ever-growing skills gap.”

This challenge is expected to intensify as companies reduce their hiring locations with the return to the office, potentially limiting their access to qualified talent.

As a result, employers have reduced the number of open roles in high-cost-of-living markets by 19 percent and have nearly quadrupled the number of roles in low-cost-of-living markets to 9 percent since 2020.

The report also highlighted the high demand for experienced engineers who can efficiently address issues, especially with the introduction of AI tools and growing cybersecurity challenges.