The two-speed pay-packet: falling wages in IT in Australia


Why talk of importing more I.T. people is overheated.

We often hear companies complaining there are no I.T. staff available in Australia. Often this is accompanied with talk of rising wages for general I.T. personnel in Sydney, Melbourne and Canberra.

But is this true?

I came across this advert for analysts at $23 / hr with a degree.

This is the same or less than I earned over 13 years ago for entry-level data tasks. And that was through agencies (whose margins are similar).

This also hardly seems generous as working shifts in a 7-11 will earn you a wage of $37/hr (something many graduates know).

If there really is a skills shortage, how can banks offer this pay — and fill the position? Which they do.

Small businesses will sometimes pay slightly more — the banks is selling a ‘career’. That is at least in theory — because banks and financial services have very high rates of candidate churn. But banks as key I.T. employers do ‘make the market’ — so you could argue a social responsibility clause.

The I.T. problem in Australia

If Australia wants an I.T. industry low wage, low industry skilling and over-emphasis on degrees for entry-level tasks are not the way to go.

Sounds to me like an I.T. employment policy is an area that could benefit from some new ideas.

Let me know your thoughts on twitter @christopherhire

Keep innovating,

Christopher Hire