According to Dice, average salaries for engineers decreased for the first time in recent years in 2023.Here’s what you need to know

Technician salaries stagnated in 2023, dropping slightly by $155 to an average of $111,193, according to Dice’s annual Technician Salary Trends Report released Tuesday. For comparison, from 2021 to 2022, the average salary for a technician increased by 2.3%.

Occupations with the largest statistical declines include cloud architect/engineer (-15.8%) and product manager (-6.7%). However, other jobs saw significant salary increases, including system administrators (+11.2%), software developers (+6.5%), and program analysts/managers (+6.1%).

Despite the historic decline, Dice CEO Art Zeile sees this change as a normalization of markets such as inflation. Dice’s report, published in early 2022 and reflecting survey data from the third quarter of 2021, showed average growth in tech compensation at nearly 7%, he said, adding that 2023 leaves many uncertainties in the market. He added that it brought about sex.

“Technology job openings declined throughout the year,” Zeile said. luck. “So the demand for technology workers has retreated relative to 2022. Again, it was a calming effect from what was seen as a surge in 2022.”

Zaile added that even though the technology unemployment rate hovers around 2%, the sector is still experiencing large numbers of layoffs.

According to Layoffs.fyi, 262,595 people lost their jobs at 1,188 technology companies in 2023. In 2022, that number was 164,969 people from 1,064 companies.

However, Zaire said these findings are no reason to panic and that demand and growth will continue.

“There is nothing fundamentally wrong with the technology job market. After all, technology workers are one of the most important drivers of the U.S. economy and are projected to remain so for the next decade.” he says.

“Migration from the coast”

Technology workers are also increasingly dissatisfied with their pay. Technology professionals who are satisfied with their compensation in 2023 compared to 2022 will be 6% less.

This underlying resentment can be seen in the geographic and locational variations in pay. For example, Silicon Valley has lost some ground (-3.3% in California), but states like Wisconsin (+16.9%), Tennessee (+13.6%), and Utah (+11.1%) have lost some ground. Fewer states saw a decline. ) saw significant growth.

Zaile calls these changes “migration from the coast.” More workers and businesses are deciding to move to the interior of the United States, where they can expect a better quality of life and a more business-friendly environment.

This migration could get even worse this year, as 93% of tech workers are looking for or open to hearing about new job opportunities, according to the report’s data.

“As a result, we predict that 2024 will be a year of significant turnover as technology professionals take their frustrations out and jump into new roles, perhaps in new industries,” the report says.

Zeiler’s advice for people starting a new job or finding a new role? Look at your own backdoor. Many opportunities are created every day in small towns and big cities, both inside and outside of the technology industry.

What skills will be needed in 2024? AI and data analysis

In an age where society is increasingly dependent on data, having skills in AI and data is beneficial. According to Zeile, the number of AI-related jobs has skyrocketed tenfold since 2022. He added that this upward trend is outpacing trends in other growth areas such as cybersecurity and cloud engineering.

“The biggest area of ​​opportunity is going to be AI,” says Zeile. luck. “There’s no question about that.”

According to CompTIA, jobs specifically related to AI or requiring specialized AI skills account for more than 10% of all tech job openings.

The need for AI skills shows no signs of slowing down anytime soon. In fact, 85% of business leaders plan to increase spending on AI technology this year.

Due to rapid growth, many companies are also removing or reducing degree and years of experience requirements from job postings. Instead, companies are focusing more on skills-based hiring to find talent and become more inclusive.

However, acquiring these skills can be complicated, as there are many different learning paths, including certifications and bootcamps. Zaile says there’s not necessarily a “golden rule” about what is the best path to success.

According to a new report from Dice, approximately 51% of technology professionals have technical certifications.

“Personally, I think the industry is very fragmented,” he says. “No one has really determined whether one set of skill tests or one skill test period really works. So now everyone is experimenting with it.”

Either way, AI is set to impact essentially every part of society, making it a key element for businesses and the workforce.

“I think smarter business leaders understand that this is one of the most transformative technologies,” Zeile says. “It’s like the early days of the Internet. It’s like the early days of smartphones, and it’s going to change the way we do business.”