Over the past few years, the job market has witnessed a significant surge in demand for IT specialists across various business niches, with companies from diverse industries, such as finance, healthcare and e-commerce, actively seeking skilled professionals to fill key roles. This trend was driven by the rapid digital transformation of businesses, the need for innovative technologies and the increasing reliance on data-driven decision-making. As a result, IT specialists, including software developers, data analysts, cyber security experts and IT project managers, were in high demand and their skills were highly valued.
However, the landscape has shifted dramatically with the lay-offs that occurred in 2023 and 2024. The sudden and unexpected downsizing of the IT workforce across multiple industries has significantly changed job-market dynamics. Many companies, citing economic uncertainty, technological advancements and shifting business priorities, have been forced to restructure their operations, substantially reducing demand for IT specialists. With the integration of artificial intelligence and the reductions that followed the pandemic-related hiring sprees, the demand for IT employees now appears lower.
This has motivated the team at RationalFX to analyse the highest-paying IT jobs in the United States based on data from the U.S. Bureau of Labor Statistics (BLS) and determine which roles offer a good salary. We also took into consideration the demand for these specific jobs by looking at the number of employed individuals as of May 2023 (the latest data published by the BLS).
Working as a Software Developer commands a very high salary, and the role is in demand, as evidenced by the number of people employed as of May 2023. More than 1.65 million software developers were working in the U.S. at the time, earning an average of $66.40 per hour or an annual wage of $138,110. However, depending on experience and skill set, some engineers earn significantly more.
Beyond the base salary, they receive performance-based annual bonuses and other benefits that can sometimes bring their total compensation to seven figures. Meta, for instance, uses different engineering grades, with those at the upper tiers able to earn millions of dollars per year. In this levelling system, distinguished engineers (level E9) and engineering fellows (E10) are paid more than $2.5 million annually in salaries, stock options and bonuses. Of course, only a handful of individuals advance to these levels, reflecting their skills, qualifications and responsibilities. Fewer than 50 engineers hold the E9 grade, while the E10 level is even more exclusive, as these are engineers with long-standing experience within the company rather than hires from outside. Similar structures exist in the other major tech companies, including Google, Amazon and Apple.
By far the highest-paying role, with average annual earnings of $157,160, is that of a computer and information research scientist; however, only 35,210 people were employed in this occupation, far fewer than in other IT roles. This is likely because the role requires advanced education and extensive computing experience. Professionals in this position, typically holding PhDs in computer science or related fields, conduct research to create and improve new technology. Far more computer and information research scientists are employed in California than in any other state, with 7,560 positions and a median annual salary of $187,420. As of May 2023, Washington State employed 2,940 computer and information research scientists who earned an even higher median salary of $202,910.
Another possible career worth pursuing is that of a computer user support specialist. The salary is low compared with other IT roles, at just $63,640 per year (the lowest average in the sector), but the post requires only a high-school diploma. Computer network support specialists also typically need only a high-school diploma, yet earn a more attractive $78,640. Interestingly, the average annual salary in the U.S. at the time was $65,470, so tech jobs as a whole remained quite attractive.
Still, more than 280,000 tech-sector employees were laid off globally in 2024, with over half of the cuts announced by U.S.-based companies. According to our recent research, a total of 157,950 tech jobs were slashed by American companies last year. At the same time, many of those companies are hiring thousands of new employees, providing fresh opportunities for IT and tech specialists. Among the most recent lay-off announcements, Meta reportedly plans to cut more than 3,600 positions. The move will affect about 5% of the company’s workforce, yet CEO Mark Zuckerberg says they will also be “bringing in new people”.
The map above shows that California and Washington were the states that had the highest-paid IT jobs in 2023. When we look at all information technology and mathematics-related jobs, the median annual wage in California was $142,270 as of May 2023. This equates to a mean hourly wage of $68.40 and covers more than 25 different occupations in the technology and mathematical science fields. Nearly 760,000 people were employed in these roles, representing 14.6% of all tech and maths jobs in the U.S. California is home to thousands of technology companies, many of which are concentrated in and around the San Francisco Bay Area and, in particular, the Santa Clara Valley, better known as Silicon Valley.
The state with the second-largest number of IT employees is Texas, where 490,410 people work in the field – 9.46% of all IT jobs in the U.S. The state hosts a large number of technology companies – most notably Dell and Oracle – which employ thousands of people both within and beyond Texas. However, the average IT salary there is lower: as of May 2023 it was $105,070, significantly below the average earned by IT specialists in California.
In terms of pay, Washington State ranks second, with an average annual salary of $137,260 for tech jobs – equivalent to $65.99 per hour. Given that tech giants such as Microsoft and Amazon are headquartered there, this ranking is hardly a surprise. In May 2023, there were 214,780 employees in IT and mathematical science jobs across the state.
The states that offered the lowest median yearly salary for computer, tech and maths-related jobs in May 2023 were Mississippi ($76,010), Kentucky ($84,970) and Arkansas ($84,820). Wyoming, by contrast, had the fewest tech and IT employees; only 3,570 people worked in such roles in the state.
Conclusion
According to the latest BLS data, there were 4,550,700 jobs in IT, and more than 5 million positions in both IT and mathematical science, as of May 2023. Despite the mass lay-offs in the tech sector in 2023 and 2024, many companies continue to hire aggressively in areas such as AI and cyber security. It is estimated that many IT roles will still be required in the coming years, with companies and government agencies looking to recruit artificial intelligence and machine-learning engineers, data scientists, cyber security specialists and, of course, software developers and tech-support staff.
Despite last year’s mass lay-offs, there is a huge demand for artificial intelligence specialists. A quick search of several job portals reveals more than 53,000 AI vacancies on Indeed, over 80,000 on LinkedIn and more than 43,000 AI-related positions on Glassdoor.
Technological advancement makes the IT job market extremely dynamic and, while this can lead to large-scale lay-offs, it also means companies are continually recruiting. This offers IT professionals ample opportunities to upskill and advance their careers. However, legacy systems remain in use because of the cost of upgrading hardware and software, so those who can work with them still have plenty of options.
Methodology
This report draws on information from the United States Bureau of Labor Statistics (BLS), which publishes detailed data about different occupations in IT and tech, including annual salary, hourly pay, required education and number of employed individuals. We consulted the latest BLS data, which are from May 2023. State figures also cover the same period.