In the United States, tech salaries are falling amid record inflation and market volatility

Following a year of record-breaking inflation and market volatility, local tech salaries in the United States, including those for entirely in-person and hybrid roles, have experienced their most significant year-over-year decline, falling 3% from $161,000 to $156,000.

Inflation-adjusted data from the AI-powered marketplace Hired revealed a shocking trend: local US salaries have reached their lowest point in the past five years, falling 9 percent from $141,000 to $129,000 between 2022 and mid-2023.

In contrast, salaries in the United Kingdom have increased by 4% annually, from 82,000 to 86,000 pounds. Despite economic volatility, job seekers in the United States and the United Kingdom have maintained their annual salary expectations at $146,000 and 82,000 pounds, respectively.

Taking into consideration current market conditions, "however, these numbers may not be as significant as candidates would anticipate," the report stated.

Amidst the rise of generative AI and the tightening of corporate budgets, those with less than four years of experience (junior talent) have seen the most significant decrease in compensation, nearly 5 percent annually.

Demand for these positions will decrease from 45% in 2019 to 25% in the first half of 2023, based on the percentage of posted roles on a tech recruiting platform. "Compared to last year, we are observing a profound shift in the preferences of tech employees and employers. The rising demand for experienced tech talent on our platform and employers' growing reliance on AI tools indicate a widening skills divide, according to Hired CEO Josh Brenner.

This difficulty will intensify as businesses reduce their recruiting locations upon returning to the office and restrict their access to qualified talent. "With the future talent pipeline at risk of a deficit, companies cannot afford to disregard high-quality talent at any level," Brenner continued.

Consequently, employers have decreased the number of open positions in high-cost-of-living markets by 19% since 2020, while the number of roles in low-cost-of-living markets has nearly quadrupled to 9%.

According to the report, skilled engineers with the ability to efficiently resolve issues are in high demand, especially with the introduction of AI tools and the rise in cybersecurity threats.