Skills shortage keeps pushing IT salaries up, says survey

AbsoluteIT expects the "top" skills shortage to become worse in the next couple of months

The third IT salary survey, conducted by recruitment firm AbsoluteIT, shows that national permanent salaries increased by 4.43% from June 2005 to July 2006.

“The increase was a bit lower than we had expected,” says Martin Barry, branch manager of AbsoluteIT’s Auckland office. “Quite possibly, there will be a greater increase shown in the next survey in December.”

From June to December 2005, permanent salaries rose by 2.54%, but from December to July 2006 the increase was slightly smaller at 1.89%, according to the survey.

The skills shortage continues to be the main reason for the upward trend, says Barry. Java, .NET and Oracle skills are in high demand, as well as roles such as systems architect, solutions architect and enterprise architect, he says.

AbsoluteIT expects the “top” skills shortage to become worse in the next couple of months. The “top” skills area includes for example Java, .NET and Oracle developers, architects and database administrators, says Barry.

Permanent salaries and contract rates are on the rise for developers, testers, architects in particular, and for most management roles, according to the survey.

Barry says there has been a bit of a lag in management salaries, but the survey indicates that salaries for roles such as IT manager and CIO are now going up.

The survey also found that the Wellington economy — strongly driven by government institutions — continues to drive demand up for sought-after skills.

In addition, permanent salaries and contract rates for project support and administrative roles showed a small increase.

The survey is based on data compiled by employers, hiring managers and HR departments right across the country, says Barry.

“This is the third survey, and each survey that we do is becoming more meaningful [because] we are getting increased participation and therefore more reliable results,” he says.

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