News / Blog: Knowledge Base

Why programmers earn less and less, not more

In past decades, the IT sector was considered one of the most promising and lucrative industries. But in recent years, a worrying trend has emerged: Programmers are no longer earning as well as they once did; in fact, their salaries seem to be stagnating or even declining. There are several factors contributing to this trend, and in this article we will highlight some of the main causes.

Saturation of the labor market:

The demand for programmers has been growing exponentially in recent years, leading to a real saturation of the job market. Companies have realized that software development is a critical component of almost every industry, and as a result have increasingly built their own internal IT teams. At the same time, there are more people choosing careers in programming today, leading to an oversupply of skilled professionals and thus putting downward pressure on salaries.

Global competition and outsourcing:

In today's interconnected world, companies no longer rely on a local workforce. They can outsource tasks and projects to external developers and foreign companies, where labor costs are often much lower. This increases competition for projects, which in turn puts pressure on programmer salaries.

Automation and Artificial Intelligence:

The rapid development of automation technologies and artificial intelligence makes it possible to automate certain tasks in software development. This means that fewer human workers are needed to achieve the same results, which reduces the demand for programmers and thus affects salaries.

Shift to part-time and freelance jobs:

More and more programmers are opting for part-time or freelance jobs to gain more flexibility and work-life balance. As a result, they may not be able to achieve the same level of income as they would in a full-time job.

Change in corporate culture:

Corporate culture has changed, and many companies are now focusing more on a start-up mentality and flat hierarchies. This is often accompanied by lower salary structures, especially at younger, up-and-coming companies.

New technologies and frameworks:

Programming languages, technologies and frameworks are evolving at breakneck speed. This requires programmers to continually update their skills and face new challenges. It can be difficult to keep up with this pace, potentially negatively impacting salary negotiations.

In summary, the reasons for the apparent decline in programmers' salaries are complex. Saturation of the labor market, global competition, automation, a shift to part-time and freelance work, changes in corporate culture, and constant change in the technology industry all play a crucial role.

However, it is important to emphasize that the IT industry is still a major industry that offers excellent career opportunities. Programmers can continue to earn well if they focus on specialized niches, continuously expand their skills and adapt to the challenges of the job market. Hopefully, the salary situation will improve again in the future and the appreciation for the work of programmers will be adequately rewarded.