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Economics, government & businessLatest NewsBonusesSkills shortagesPay & benefits

IT market stable as average earnings rising by more than 4% despite skills shortages

by Personnel Today 27 Jun 2006
by Personnel Today 27 Jun 2006

Average earnings for IT professionals have increased by 4.4% over the past year, with the employment market remaining stable, research reveals.


The poll of 57,000 IT jobs in more than 500 organisations, conducted by analyst firm Computer Economics, revealed average annual salary increases of 3.9%, up 3.8% from last year, with bonuses of 13.1% for IT managers and 7.9% for other IT staff.


The average 4.4% increase in total earnings was a slight increase on last year’s figure of 4%.


Paul Campfield, managing director at Computer Economics, said the IT employment market was fairly stable compared with a few years ago.


“The movement in earnings and resignation rates are not that big,” he said. “However, there will be employers struggling to find key staff. Although the market is static, companies still have to be aware that there are key skills that require particular attention and attract a premium.


“Companies need to retain staff with premium skills.”


Resignation rates have levelled off at 7.1%, the same as last year’s figure, after a sharp rise from 4.6% in 2004.

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