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Techie Pay Approaches All-time High
Stony Stevenson sent in this ITNews story which opens, "Techies were paid nearly record-high hourly wages in the third quarter, according to a new report released Thursday by staffing firm Yoh. Based on data compiled from 75 Yoh field offices and 5,000 technology professionals contracted in short and long-term projects, pay increased an average of more than 5.5 percent for the quarter ended Sept. 30, compared to the same period last year."
People forget that each H1-B visa lasts for basically 7 years. And that the limits were wildly expanded during the dot-com boom. Starting in 2000, they went from 65,000 to 130,000. And this continued well after the dot-com bust had happened. It was only in 2004 that the limits went back down to 65,000.
Since this limit wasn't expanded this year (yet), that means lots of H1-Bs are starting to go home. This is why all of the visas that were issued in April were gobbled up in a single day. And none of this is something that you'll see in the mainstream press.
So a lot of H1-B's are going home this year. The local labor market WILL get tighter, and wages WILL rise.
If the limits aren't expanded this year, it's unlikely they'll be expanded next year either, as that's a major election year.
If Hillary Clinton is elected though (which seems likely), you can expect them to again be doubled, as she's been aggressively promoting their expansion, even on her current website.
So, expect wages to go up, while the H1-B's go home. And enjoy it while it lasts, as it won't last forever.
It's just more proof that H1-B's are all about cheap labor and not about a lack of talent.
Need I go on? A 5.5% raise is still a 4-7% DECREASE in buying power verses the world economy.
No it doesn't.
A 5.5% raise means you have 5.5% more money.
An 11.1% fall against the Euro means you have 11.1% less purchasing power when buying goods imported from Europe. You're not any "poorer" than they are.
It also means our goods are 11.1% less expensive for Europeans, which means more exports and lessened trade deficit.
Just because our currency lost value against another country's doesn't mean we're now "poorer" than they are.
DATABASE WOW WOW
An 11.1% fall against the Euro means you have 11.1% less purchasing power when buying goods imported from Europe.
Huh? Doesn't it mean dollar holders lose, in general, 11.1% of their purchasing power for any good that could be sold on the global market?
For example, imagine a world in which you could buy one gold ounce for 1000 dollars, or one gold ounce for 1000 euros. In that case, the exchange rate would probably be 1:1. If the exchange rate were to ever go to 2:1, everyone would instantly have an arbitrage opportunity: Sell 1 gold ounce for 1000 euros, exchange those euros for 2000 dollars, and buy 2 gold ounces, for a profit of 1 gold ounce. But market action like that would quickly drive the exchange ratio back to 1:1.
So, if the exchange ratio were to ever go to 2:1, we could reason that either 1) the new exchange ratio will be short lived or 2) we will see a general price increase of 100%, in terms of dollars, on goods that could be (but will not necessarily be) exchanged on the global market. You seem to be treating the exchange rate as though it is unrelated to domestic prices, but perhaps I don't understand your position.