Average Annual Salary In Silicon Valley’s Tech Sector Has Surpassed $100,000 In 2011
The high-tech sector has enjoyed an amazingly good year and the trend is expected to continue in 2012. According to a survey, the average annual salary in Silicon Valley stands at $100,000. Silicon Valley is the most important region for the technology world as major companies are based or they’ve started their business in the area.
Dice Holdings said that the software and other profession related to engineering has been very profitable in 2011. The tech jobs website’s statistics shows that the average annual salaries have increased by 5.2% over 2010, up to $104,195. The statistics also mention a 2% nationwide increase of people working in an area related to technology taking it up to an average annual salary of $81,327.
This is the first time the average annual salary has gone over $100,000 since Dice Holdings has begun studying the market in 2001, said Tom Silver. Dice’s Senior Vice President added that one of the reasons why the Silicon Valley tech market increased so much was the rising of several web companies like Facebook, Twitter, and Zynga. In addition, Zynga and LinkedIn have gone public last year.
Web companies are getting bigger and more powerful, and there are many of them who are fighting against each other to hire the best software engineers thus the salaries have increased. Many software engineers who raised enough money have also opted to create their own start-ups therefore lots of new jobs have been created.
Job growth has remained almost the same across the country with only 200,000 new jobs added in December 2011. This has allowed the unemployment rate to drop down to 8.5% which represents the lowest rate since 2009. The analysts expect the trend to remain the same though the unemployment rate will still remain a bit too high in the technology sector.
The job postings on Dice Holdings’ website for Silicon Valley have increased by 26% in January 2012 over January 2011. If one year ago they stood at about 4,000, now they’re sitting comfortable at over 5,000. On the other hand, job postings across the country have increased only by 11%.
SmartRecruiters is a startup company which provides recruiting tools for free and it has recently close a venture financing which has allowed it to raise about $5 million. As a result, the company will bring about 40 new employees aboard before the beginning of the summer.
The startup’s CEO said that he would like to add more employees to SmartRecruiters, but “you cannot bring them all” and you have “to find the right people.”
Another thing worth noting was the increase of bonuses as they went up by 13% in 2011. The average bonus stands at $12,450 in Silicon Valley, while nationwide it has increased by 8% up to $8,769. Dice Holdings also reported that hourly contractors are now paying $74 / hour in Silicon Valley which represents an increase of 11%.
In other words, if you want to get rich, then you should move to San Francisco, California and start looking for a job. $100,000 should be more than enough during these times of crisis.