Tech Hiring Turns to Junior Candidates, Driving Salaries Down

Tech salaries in the U.S. have decreased a bit (1.1%) as companies look to hire junior candidates for senior roles. A rising competition for software developers and other tech workers, partially due to the “Great Resignation” has caused companies to bring on cheaper, less experienced workers. (more experienced workers are experiencing an increase in pay)

In parallel, the current hiring shortage is bolstering wages across industries. The Federal Reserve Beige Book reports that increased wage growth is seen across almost all districts.

Private-sector jobs in the U.S. are up by 534K in November per the ADP National Employment Report.

Jobs added in November by sector:

• Goods-producing:
  • Natural resources/mining, up 7,000
  • Construction, up 52,000
  • Manufacturing, up 50,000
• Service-providing:
  • Trade/transportation/utilities, up 78,000
  • Information, up 10,000
  • Financial activities, up 13,000
  • Professional/business services, up 110,000
    • Professional/technical service, up 51,000
    • Management of companies/enterprises, up 5,000
    • Administrative/support services, up 53,000
  • Education/health services, up 55,000
    • Healthcare/social assistance, up 46,000
    • Education, up 10,000
  • Leisure/hospitality, up 136,000
  • Other services, up 22,000

In addition, the manufacturing sector in the U.S. grew in November but hiring is still a large obstacle. “The US manufacturing sector remains in a demand-driven, supply chain-constrained environment, with some indications of slight labor and supplier delivery improvement,” said Timothy Fiore, chair of the ISM’s manufacturing business survey committee.

Compensation in 2020 increased for top staffing executives by a median of 5.3% at U.S. and Canada staffing firms. Total compensation included base pay, discretionary bonuses and stock awards as well as other forms of compensation. Executives in North America were in the lead when it came to compensation, seeing an increase of 5.3% in the past year.

Until next week,

Erin and the BountyJobs team