"Salaries have shot up over the last six months," said Freier, who said 10% to 15% increases are now the norm.
The Fed reports "large compensation increases" in some other parts of the country as well for tech workers, including Atlanta and Kansas City. But in St. Louis, it said some tech firms reported plans to reduce employment.
This high demand is coming as tech employment is showing signs of slowing nationally. In August, IT employment reached just more than 4.5 million, according to TechServe Alliance, an IT services trade group that tracks month-to-month employment data.
To put it in perspective, at the start of the recession in 2008, tech employment reached 4 million before losing thousands of jobs over the next two years. In August, the U.S. added 169,000 jobs, and of that number 6,800 were tech jobs, or about 4% of the total, TechServe said.
Despite the demand in places such as San Francisco and Boston, the rate of tech job growth nationally "has decelerated," said Mark Roberts, CEO of TechServe. He believes one cause may be lack of adequate supply of tech workers.
Janco Associates, which also tracks the month to month numbers, reported a slight decrease in new IT jobs, noting that hiring is trending down. It counted 7,000 new tech jobs added in August.
Hiring restraints at technology-using firms were found among the more than 100 CIOs Janco interviewed, said Victor Janulaitis, the company's CEO. "Most of the CIOs we interviewed do not feel they will be able expand staff size over the next 12 months."
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