The technology sector has been experiencing a rough patch for some time now, with major corporations announcing massive layoffs of their workforce. Uncertainty about their future is a concern for many employees who have witnessed the prevalence of dismissals recently. A survey reveals the reality of American technology sector workers, who are dissatisfied with their salaries of over $100,000 and believe they are worth more than that.
Mass layoffs began at the start of 2023, just a few months after ChatGPT entered our lives and the industry changed its stance toward AI. In the technology sector, companies such as Microsoft, Google, Meta, and Amazon announced workforce reductions that resulted in thousands of job losses. It was expected that things would improve the following year, but 2024 began even worse, with layoffs by many companies and Google already warning that further cuts would be made throughout the year.
Technology sector employees are unhappy with their salaries of over $100,000
Working in the technology sector is well-paid, especially if you end up in one of the world-renowned large companies like Google or Microsoft. Nevertheless, a survey conducted by Dice Tech involving 6,166 technology sector workers shows that they are actually dissatisfied with their current salaries and positions, as well as being fearful of the future. The 2023 report results observed worse outcomes, with satisfaction dropping from 55% in 2022 to 49% in 2023.
We are talking about a sector with an average salary of $111,193 a year in 2023, almost double the average American salary of $59,384. Many technology sector employees feel they are worth a higher salary, and in some US states like Iowa or Wisconsin, wages increased by almost 20% compared to 2022 figures. However, 12% of surveyed workers mentioned that their salary decreased in 2023 compared to 6% in 2022.
93% of sector workers want a new job or seek new opportunities
A staggering 57% of surveyed technology sector workers had experienced layoffs (10%), had seen a colleague get laid off (22%), or were concerned about being laid off (25%). Of the 263,000 workers who were laid off in 2023, a quarter of them needed more than six months to find a new job. Looking at salary reduction statistics, layoffs account for 14%, but we must add many other factors that have been involved.
Various projects and clients assigned to them, workplace changes, government cutbacks, or fewer working hours are reasons for lower salaries. Despite all of this, the main concern for workers in the end is the fact that they can be let go at any moment. We have seen around 50,000 layoffs in this industry in 2024 so far, with the video game sector being hit particularly hard.
In the case of this survey, the results are rather disheartening, as 93% of workers are either looking for a new job or being open to new opportunities. Regarding factors causing this situation, generative AI is believed to have made the most significant impact, with companies wanting to invest millions in artificial intelligence and consequently looking to save money by cutting their workforce.
The article “Technology sector workers dissatisfied with their salaries and concerned about layoffs” first appeared on El Chapuzas Informático.
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