A new report suggests that in London, tech salaries are lingering behind other cities across the globe with the average salary declining by more than 17 percent since 2015.
After compiling some information from ten cities in the United States including New York and San Francisco, as well as Paris, London, and Toronto, Hired, a recruitment platform, discovered that the global average of tech salary is $135,000 (£97,000).
The salaries were highest in the San Francisco Bay Area, the home to Silicon Valley, which has an average of $142,000, and the lowest in Paris with $56,000.
London ranked a spot above Paris with the tech workers, which were defined by Hired as roles in software design, engineering, data analytics, and product management, earning an average of £58,000 or $78,000.
Salaries in the United Kingdom was not able to keep up with the inflation rate of 2.8 percent, increasing by only 1.24 percent over the previous year. On the other hand, in the United States, tech salaries in New York and San Francisco increased by five percent over the past 12 months.
In London, it was discovered that software engineers make 42 percent less compared to those in San Francisco, even after factoring in the cost of living.
The chief executive of Hired, Mehul Patel, said that lower salaries implied that London was at a huge disadvantage when attempting to recruit top talent for roles in the United Kingdom.
In fact, the candidates that are willing to transfer to London were offered around £12,000 more compared to the local workers.
The decline in wages appears despite the higher demand for tech workers. Mehul said that this could notably be explained by the fact that the roles of software engineers are not bigged up as much in the United Kingdom as compared to the United States, where he said that everyone aims to be the next Mark Zuckerberg. He said that the competition for roles in the tech industry in the United States is also much higher, and in general, wages are normally higher compared to the United Kingdom.
“There’s no doubt it’s a critical issue,” said Mehul. He added that he hoped that the recent study would move companies in the United Kingdom to break out of a time of stagnant wage growth.