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New figures have revealed good news for those working in the tech sector, with average IT earnings increasing at a greater rate than the wider UK economy.

This is despite the fact that there has been a slowdown in hiring, which perhaps indicates a continued struggle with skills shortages.

The latest Robert Half Jobs Confidence Index (JCI) – an economic confidence tracker produced in partnership with the Centre for Economics and Business Research (Cebr) – found that average weekly earnings in IT were up 11.1%; this is above the growth noted across all UK industries (8.2%).

The data also shows that businesses are seemingly turning to temporary resources to fill demand, rather than committing to permanent headcount increases, with the share of employees with a temporary work arrangement growing by 0.5 percentage points.

Craig Freedberg, Regional Director at Robert Half, commented, “It’s been a difficult year for the technology sector so far, with layoffs reported by a number of leading brands.

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“However, this has largely been the result of over-ambitious recruitment activity during less uncertain economic times. We’re finding that demand for the best tech talent remains rife – particularly with SME and growing businesses – but skills shortages are continuing to plague the sector.

“We haven’t seen the influx of talent into the market that we might have expected following redundancies, but we are beginning to see a greater reliance on temporary and contract tech experts. This trend is likely to continue while uncertainty remains.

“What is perhaps the most notable trend, though, is the significantly high levels of pay that workers are able to command as the skills crisis continues. With wages on an unsustainable upward trajectory, employers are going to need to look at alternative means of attracting tech talent.”

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