Janco: IT managers earn more than other top executives

According to a new report based on the latest data from the US Bureau of Labor Statistics (BLS), IT executives and managers are among the highest-paid workers in US companies.

BLS updated this week Overview of Occupational Employment and Wages 2022. A computer and information research scientist earns about $155,880 a year on average. A database architect earns the second highest annual salary with just over his $136,540. This was followed by software developers at $132,000 a year.

A shortage of technical talent combined with low unemployment is putting upward pressure on wages.

Statistics from business consultancy Janco Associates show that there are 145,000 IT professional vacancies in the United States, largely due to a shortage of qualified candidates. Another of his IT industry groups, CompTIA, puts IT job openings even higher at 316,000. In March, technology Unemployment rate flat since February 2.2%.

Based on new BLS data — agency explained how they got to that number In this technical note — Junko Publish your own reports This week, we compared IT payroll data to the agency’s data. “If anything, Janco’s results are more conservative because the data are more detailed,” the consultancy said in the report.

Junko Associates

“Computer user support specialists were the only computer occupations that didn’t have above-average wages,” says Janco. “Interestingly, many companies have chosen to offshore these functions, which has slightly reduced costs while negatively impacting their in-house staff and the level of service they provide to their customers. .”

According to Janco, computer and IT managers are among the highest paid positions in the United States, earning an average of $173,670 across all industries and occupations. That’s even more than the top executives ($129,050) across all industries and occupations.

While one of the most sought-after jobs, computer user support specialists (help desk and customer service representatives) are among the lowest paid at just $61,580, alongside computer network support specialists who earn an average of $76,060. I also had a computer job.

When it comes to jobs in the technology industry, software developers occupy just over 1.5 million positions in the US, more than double the 700,000 positions for computer user support specialists. Computer Systems Analyst with 500,000 jobs ranked him third.

BLS

Not surprisingly, according to BLS data, the largest employers of computer and mathematics occupations in the United States were computer system design and related services firms (1.31 million jobs). Management companies and large corporations were his second largest employer of IT workers (331,220 jobs). This was followed by software publishers (286,760 jobs) and employment services (190,030 jobs), including temporary help services.

There are more than 4.18 million people working as IT professionals in the United States today, according to Janco, and past efforts to outsource technical jobs have done little to cut costs.

“The move to outsource these skills has resulted in longer lead times and higher costs to complete tasks, which has also negatively impacted the service levels delivered by the IT function. ” said Janco.

The states with the highest salaries for computer jobs were California, with an average annual salary of $143,670, and Washington with an average annual salary of $129,870. The states with the lowest salaries in this group include Mississippi at $75,840 a year and North Dakota at $76,900 a year.

With many IT professionals looking to maximize their net compensation, the cost of living has become a major driver of compensation levels, especially as inflation plagued the economy over the past year.

Earlier this week, a job site Lensa It was published Research study One of the most in-demand jobs in the US is ‘computer-related occupations’, second only to ‘medical examination and treatment professionals’. According to Lensa, over 3.1 million potential applicants clicked on open jobs in the IT sector.

Junko Associates

Growth in the US IT job market came to a sudden halt early in the year, dropping 2,600 jobs in January and 11,600 jobs in February. The market recovered slightly in March, adding 500 jobs, according to BLS data.

In January, Janco predicted IT professional salaries would increase by up to 8% for some tech workers this year. But citing recent economic uncertainty and widespread layoffs, Janco corrected its predictions And now, we believe the average salary for IT professionals in 2023 will be 3% to 4% above 2022 levels.

About 170,000 employees lost their jobs in the first quarter due to layoffs by tech giants such as Accenture, Microsoft, Meta and Alphabet, according to the IT industry job tracker. layoff.fyi.

IT job growth is expected to be net positive again this year, although it has slowed since last year.

“We continue to expect 60,000 to 70,000 new IT jobs to be created in the current calendar year,” Janco said. “This will be slower than the last two years, but it will still be positive.”