IT services: Nominal wages rise, real wages fall

IT services: Nominal wages rise, real wages fall

The Federal Statistical Office recently published data on wage developments for 2023. Although nominal wages in the IT services industry have increased slightly, there is a downward trend in real wages. Computer scientists are among the top earners in Switzerland and salaries in this industry will also have increased slightly in 2023, as the current figures from the Federal Statistical Office show.

Compared to the previous year, nominal wages for IT services rose by 1.6 percent, while the average increase for all sectors in Switzerland was 1.7 percent. However, the real wage was reduced by an average of 0.4 percent due to an above-average inflation rate. This was mainly caused by rising prices for electricity, gas and rents. In the IT services industry, the decline in real wages was even 0.5 percent. In contrast, nominal wages in publishing, audiovisual media and broadcasting, and telecommunications increased by 2.2 percent, while real wages increased by 0.1 percent.

The IT industry recorded the second highest shortage of skilled workers of all sectors in Switzerland in 2023, as figures from Adecco show. Interestingly, some areas such as “freelance, scientific and technical activities” (-2.7 percent), health and social services (-2 percent) and “other manufacturing of goods; repair and installation” (-2.5 percent) showed the largest decreases in real wages. In contrast, public administration recorded a real wage increase of 1.5 percent.

It should be noted that although the wage development in the IT sector in Switzerland showed a positive increase in nominal wages, the purchasing power of real wages was affected due to inflation. The current challenges of the shortage of skilled workers and the impact on wages are aspects that the IT industry must continue to monitor.