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Low paid IT jobs on the rise

Skills Survey 2008: Is offshoring affecting wages?

Tags: wages, skills survey

By Natasha Lomas

Published: 21 November 2008 10:00 GMT

A growing number of IT workers are finding themselves on the lowest rung of the salary ladder, according to exclusive silicon.com research.

The 2008 silicon.com Skills Survey reveals more than a fifth (22 per cent) of tech workers now take home less than £25,000 - compared to just 14 per cent back in 2006 and 2007. Almost half (48 per cent) of techies earn between £25,001 and £55k - a slight drop on last year's result when 52 per cent fell into this earning bracket.

2008's survey also shows IT salaries are spreading more evenly across the pay board - with almost a quarter of IT pros earning either £25,001 to £40k, or £40,001 to £55k; and 13 per cent falling into each of the next two wage brackets (£55,001 to £70k; and £70,001 to £110k).

In previous years a greater proportion of IT salaries were concentrated in the lower mid-tier than they are today.

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Over the last five years there has been a gradual decrease in the proportion of IT salaries in the bottom end of the mid-range wage bracket (£25,001 to £40k). More than a third (35 per cent) of IT workers took home a pay cheque of this size back in 2003, compared to just under a quarter (24 per cent) now. Conversely, the proportion of high tier salaries (£70,001 to £110k) has crept up over the same period - from nine per cent back in 2003 to 13 per cent now.

Shrinkage in the mid-range wage bracket could reflect a growing UK skills shortage in IT's mid-levels - fuelled by decreasing numbers of IT grads entering the market, and increased offshoring of junior tech jobs.

The survey also reveals slightly fewer IT workers are earning the biggest salaries - of £110,001+ - than in recent years, with just five per cent on such a wage now, compared to seven per cent in 2007 and six per cent in 2006.

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