IT salaries drop 2pc as global talent arrives

International job applicants have contributed to the medium base salary dropping by 2pc. Photo / iStock

Salaries in New Zealand's IT sector have fallen 2 per cent due in part to the increasing arrival of international talent and a lift in the number of job applicants.

IT salaries dropped from $82,000 to $80,000 in the January year, says recruitment consultants Absolute IT in its latest remuneration report.

Auckland has seen the biggest drop in salaries, down 2.5 per cent, while in Christchurch rates were up 6.6 per cent.

Absolute IT director Grant Burley said salaries in the sector had fluctuated over the past two years.

"We are once again seeing a slight dip in IT salary packages in New Zealand after an upward bounce was recorded in January this year. Over the last two years the national median IT salary fluctuated between $82,500 and $80,000 every six months," he said.

Burley said a review of overseas job applications revealed an interesting trend.

"An inverse trend became apparent, IT median salaries would rise when overseas applications are falling and IT salaries would fall again when overseas applications are on the rise.

"This explains why Auckland has experienced the biggest drop in IT median salaries (down 2.5%) as it is also the area with the highest rate of migrant arrivals."

A short supply of IT talent in New Zealand has led to a job force with a very high ratio of overseas talent.

Orion Health chief executive Ian McCrae said while there are IT jobs available in the country, half of his workforce was from overseas.

Salaries for Wellington IT workers remained flat overall, despite being the region with the best IT packages - with a mediun salary of $87,000 and a $90 per hour for contractors.

Hamilton salaries rose 2.5 per cent, but IT contrators were hit the hardest, seeing the hourly rate drop by 17 per cent or $12 per hour to $60. The decrease was reflected in contract vacancies in the region.

Job vacancies

The number of job vacancies across New Zealand was up in June by 1.2 per cent and lifted 13.5 per cent over the year, the Ministry of of Business, Innovation and Employment (MBIE) 'Jobs Online' survey said today.

Vacancies rose in seven out of eight industry groups, with the hospitality and tourism industry experincing the greatest demand.

Machinery drivers and operators were among the greatest in demand, up 2.8 per cent and demand for technicians and trades up 2.1 per cent.

The biggest lift in job vacancies was in the Bay of Plenty.

Annual change of vacancy increases:

• Hospitality and tourism - up 19.4 per cent
• Construction and engineering - up 16.3 per cent
• Accounting, HR, legal and administration - up 14.1 per cent
• Sales, retail, marketing and advertising - up 6.7 per cent
• Education and training - up 5.9 per cent
• Healthcare and medical - up 2.1 per cent
• Information technology - up 1 per cent
• Other - up 19.2 per cent

See Absolute IT's full remuneration report below: