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If Tech Is So Important, Why Are IT Wages Flat?
dcblogs writes "Despite the fact that technology plays an increasingly important role in the economy, IT wages remain persistently flat. This may be tech's inconvenient truth. In 2000, the average hourly wage was $37.27 in computer and math occupations for workers with at least a bachelor's degree. In 2011, it was $39.24, adjusted for inflation, according to a new report by the Economic Policy Institute. That translates to an average wage increase of less than a half percent a year. In real terms, IT wages overall have gone up by $1.97 an hour in just over 10 years, according to the EPI. Data from professional staffing firm Yoh shows wages in decline. In its latest measure for week 12 of 2012, the hourly wages were $31.45 and in 2010, for the same week, at $31.78. The worker who earned $31.78 in 2010 would need to make $33.71 today to stay even with inflation. Wages vary by skill and this data is broad. The unemployment rate for tech has been in the 3-4% range, but EPI says full employment has been historically around 2%."
Because IT stuff is easy. I mean, you just type some things and click a few buttons, right? That's not hard. Why do you need 100k a year to do that?
Long signatures suck.
... why do they earn so little? Nobody wants dirty toilets.
Engineers are the dumbest smart people in the world.
If your plumber fucks up you can end up with thousands of dollars in water damage. If your electrician fucks up, your house can burn down. That's why we pay them fairly well and insist that they become certified.
I don't know why you think coding on a large project is easy either. The skillset required is not easy to find, and there are a whole lot of assholes who can make a total mess of your project and cost you thousands in delays and additional work because they don't know what they're doing. That's one of the big reasons you don't see as much coding outsourced these days. 5 or 10 years ago everybody was doing it, and also discovering that the product they got back was of poor quality compared to stuff from their in-house coders. It is very expensive to fix bad code.
I read the internet for the articles.
That's ridiculous, $1500*12 = $18k a year. Subtract taxes from $125k and you should still be at about $80k.
That leaves you over $60k after taxes and rent. If you can't manage to pay your loans and live comfortably on that much money (while putting away a bit of savings at well) you are a spoiled brat.
At $80k sharing a nice 2 BR you are still talking $40k "to live on". You may not want to constantly drop $100+ a weekend on dinner and drinks, but ramen noodles my ass.
two facts
the average ceo in 1970 earned $500,000 in 2000 it was $5,000,000
the average empolyee in 1970 earned $19.26 in 2000 it was $19.74
The exact numbers are off a little bit as I am going form memory the fact is unless your on the board of directors your pay has been basically flat. IT is just the lastest group to be shafted by corporate boards.
Remember it is perfectly fine for a company to fire 1,000 people and then pay the board those people's salaries as executive compensation. Wall street supports such moves by increasing your stock price.
i thought once I was found, but it was only a dream.
Does she drive a Prius now? The forecast for the SF area warned of heavy Smug for the coming week.
the "Quit complaining and count your blessings" demands are what we've been getting told for decades by those at the top, "Cry me a river", the sad part is now we repeat it to eachother, ignorant of the fact that they were merely telling us that crap to protect their own raising income. Look at the year-over-year income rise % since the 60s, it is amazingly ridiculous how much CEO income raises have gone up in % over the years, not in total. Also look at the % of population in the middle class vs. % of population in the lower class since the 60s. Come back when you think we should all just keep sucking it up and aren't convinced if we continue to "Quit complaining" the middle class won't be gone altogether.
Last quarter the economy's profits grew quite a bit over previous quarters, however hiring remained flat. Quit complaining and work more hours, at least you've got a job right?
Y'all are making excuses for a much larger phenomenon. The implosion of the middle class. Here's a comparison of wage growth for Americans from 1967 until 2011. Look at the various jumps in the curve. You can see the big jump in the late sixties of the lowest quartile, the clear results of the war on poverty. The economic doldrums at the end of the Carter Administration. The sudden increase during the Reagan first term, but take special notice of how the rise benefits the upper quintile and even more so the top 5% (and if you could see the top 1% and top 0.01% I think you'd see something shocking.) The subsequent fall during the senior Bush Administration followed by the boom of the Clinton years (and make no mistake, the booms during both Reagan and Clinton involved huge economic expansions in industry, heavy industry for Reagan and information industries for Clinton. Then junior Bush's Terms, and here's where it get's interesting. Notice the steady decline in advancement. The majority of Americans are seeing their wages crashing towards stagnation or worse. In fact looking at the lowest quintile, over the last 10 years they've had a 20% drop in real wealth. Even the first quintile has remained stagnant with extreme fluctuation. So this is not just an IT thing. The only folks to see dramatic increase in personal wealth over the last 10 years I in a group smaller than the top 1%.
While that was going on, the real wealth of Americans at large has been disappearing. Here's a brilliant lecture on the looming collapse of the Middle Class and the economic forces responsible for the situations we all face today. Contrary to pundits conversations Americans spend significantly fewer inflation adjusted dollars on food, clothes, appliances and cars. Where they are getting killed is Cost of Housing, revolving credit and loan debt, Medical Insurance and drugs, Child Day Care, Cost of Fuel/Energy, that and there are new expenses surrounding electronic gadgets that have been a steadily growing part of the cost of living since the late 80s.
The Banks (both in banking, loans and real estate), Big Medicine/Pharma, and Energy have put the American Family in such a precarious position, that any small disruption or disturbance results in almost immediate financial collapse. The critical events facing Americans are Death of a spouse, Injury or Serious Illness, Divorce and extended Unemployment. Any of these (singly or in combination) are enough to initiate a cycle of debt, penalties and ultimate bankruptcy. Add to this growing inflation and the erosion of our savings and investments, and you can see that the American Family is under extraordinary financial stress. The American dream for a growing population is just being able to get by.
>1500 for a two bedroom unit is steep compared to other parts of the country, but hardly unaffordable on $80k/yr.
It is if you are saving properly for a downpayment and a 401k.
Lose your sense of entitlement. $80K/year, -20K taxes, -18K rent = $42K/year. You are doing way better than most people.
So you want to exclude $15K pretax for your retirement and maybe $15K so you can have a downpayment in a few years? You still have $1K/month for food, drink, and fun. You are doing pretty damn well for a young person.
Winchester, Browning, Smith & Wesson, Colt and Beretta...