In a recent study conducted by staffing service firm Human Resocia Co., it was revealed that IT engineers working in Japan earned an average salary of $36,061 in 2023. This marks a decline of six places from the previous year, positioning Japan at the 26th spot among 72 countries.
The drop in ranking underscores the stagnant wage growth in Japan, despite the increasing demand for engineers in the IT industry globally. The surge in popularity of artificial intelligence and other digital technologies has fueled this demand, yet Japan’s compensation for IT professionals fails to keep pace.
According to a member of the research team, “Even disregarding the effects of a weak yen, (Japan’s) competitiveness is receding when looking at salaries.” This observation raises concerns about Japan’s attractiveness as a destination for IT professionals.
Leading the global rankings in terms of annual pay is Switzerland, with an average of $102,839, followed by the United States and Israel at $92,378 and $76,500, respectively. The significant disparity in salaries highlights the need for Japan to address its wage competitiveness to remain competitive in the global IT market.
Key Points of this News
Japan’s IT Worker Pay Decline: In 2023, IT engineers in Japan earned an average salary of $36,061, marking a drop of six places from the previous year to rank 26th among 72 countries.Stagnant Wage Growth: Despite the increasing global demand for IT professionals due to the rise of artificial intelligence and digital technologies, Japan’s wage growth in the IT sector remains stagnant.Concerns About Competitiveness: Analysts express concerns that Japan is becoming less attractive as a destination for IT professionals due to its declining salary competitiveness.Global Salary Disparity: Switzerland leads the global rankings with an average annual pay of $102,839, followed by the United States and Israel. This significant disparity in salaries underscores the need for Japan to address its wage competitiveness in the IT industry.
