Lorien Salary Survey reveals in-demand technology workers securing robust wages as hiring stabilises in the tech sector

August 6, 2024: With tech sector hiring appearing stabilised, specialists possessing in-demand skills are commanding strong pay hikes many times higher than the market average in the UK and North America, according to a new salary survey released by industry-leading talent solutions provider Lorien. While wage growth was especially strong for those in AI, software engineering and mobile technology, the data also shows steady gains across other IT roles.  

Lorien’s second annual Technology & Digital Salary Survey, a comprehensive examination of hourly wages and annual salaries for more than 100 roles, shows that specialised talent remains scarce, and the explosive proliferation of AI and data analytics is leading to fierce competition for those skills. Compensation is also robust for many other tech jobs ranging from Cloud skills and cyber security analysts in the UK to infrastructure architects and mobile developers in the US. Demand for these and other skills, according to Lorien business leaders, appears to have rebounded from last year’s slumping tech market.  

“By the numbers, tech hiring appears to have stabilised following job cuts in 2023. As a result, pay is also rising as employers look to add capabilities to their workforce,” according to David Gettins, Lorien’s UK Managing Director. “With many organisations making significant investments in AI, data analytics, cloud and cybersecurity technologies, demand for great talent is again healthy. Employers should take note that competition for scarce skills will likely intensify later in the year.” 

The data, compiled in the second quarter of 2024, was sourced from proprietary Lorien data and best-in-class third-party platforms that aggregate contingent workforce data. The reports, featuring both contingent workforce pay rates and full-time equivalent (FTE) salaries, reveal detailed information for jobs within 11 clusters, including: AI, machine learning and data analytics; cloud & DevOps; CRM & ERP; cyber security; infrastructure & data centres; mobile; program & change management; quality assurance & testing; software engineering, telecommunications; and UI/UX.  

In North America, the salary survey revealed that all 11 job clusters reported pay increases of at least 4%, with those in AI, machine learning and data analytics securing the highest average of 5%. Software engineers and mobile developers reported hikes of nearly the same size due to more brisk hiring. Chief data officers and data architects also landed outsized raises, as did robotic process automation engineers. Conversely, roles reporting the slowest growth include program and portfolio managers. Even then, gains were close to 4%. In comparison, real average hourly earnings for all jobs in the US increased just 0.5% from April 2023 to April 2024. Similarly in the UK, in-demand roles such as those in cloud and data saw the largest wage growth of 9% and 8% respectively in the contract market, while permanent salaries grew the most for cloud roles (8% YoY increase) and infrastructure roles (4% YoY increase). Meanwhile growth in total pay across the UK last year was just 1.3% (adjusted for inflation) according to 2024 data from the Office of National Statistics (ONS). 

“While wage growth is rebounding, we don’t expect the same frenzied demand for tech talent that the industry experienced in 2020 and 2021. More likely, a steady, measured rise in employee earnings will occur for the rest of this year and into 2025,” said Ryan McMahon, President of Lorien in North America. “Organisations can anticipate ongoing challenges in acquiring specialised skills and should take steps to mitigate scarcity in their talent strategies.”