Technology sector wages fall 11% since 2002

News
9 Feb, 2016

But IT industry has grown more than any other in 14 years

The average wage in the tech sector has fallen 11 per cent since 2002, now standing at £44,780, according to new research.

But overall, the aggregate wage bill for the technology sector is now 82 per cent higher than it was in 2002, rising from £17.4 billion that year to £31.6 billion in 2014, analysis from IT recruitment firm Randstad Technologies found.

This is due to the growth of the technology industry in general, with 400,000 more people employed in IT roles since 2002.

Ruth Jacobs, managing director of Randstad Technologies, said: "The increasing demand for tech has been the umbrella which sheltered the sector from the storm of the recession. The growth in the sector has been so significant it's now responsible for five per cent of the UK's total wage bill.

"But this rapid expansion means there is tough competition for tech talent as employers want to find the right people for the right jobs."

The analysis is based on figures from the ONS Annual Survey of Hours and Employment and the Labour Force Survey from 2002 to 2014, as well as data from The Financial Reporting Council.

"The demand for people with advanced IT skills will only grow in the future, as Britain will need 2.2 million digitally skilled workers by 2020 to match the sector's potential," Jacobs said. "This means that if you are qualified for software developer jobs, data analyst jobs or network engineer jobs, it will be easier to find work, with almost no chance of being laid off for long periods of time." 

In contrast, the rise in the real wage bill between 2002 and 2014 for the next-highest sector, social workers, was 25.2 per cent, followed by nurses with a 23 per cent rise.

The least recession-proof jobs were travel agents, electricians and retail sales assistants.  

Jacobs added: "As technology has progressed, the costs associated with the industry have dropped exponentially in line with Moore's law. While the average salary figures have been boosted by the number of IT jobs in London, the growth of fintech jobs and IT security jobs have helped the sector to do well compared to other industries." 

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