PayScale Index Q3 2015 Highlights

  • Sorry to burst your bubble, but there doesn't appear to be a tech bubble after all. After wages for IT jobs fell for the first two quarters of 2015, they picked up once again in Q3, growing 0.6 percent for the quarter and 0.5 percent for the year.

  • Engineering jobs and Science and Biotech jobs saw a similar uptick. Engineering wages grew 0.9 percent for the quarter and 0.8 percent for the year; and Science and Biotech jobs increased 0.8 percent for the quarter and 0.9 percent for the year.

  • Metros with a high prevalence of STEM workers also recovered this quarter.  San Francisco, Boston, and Seattle all experienced quarterly growth of about 1 percent.

  • But the crash in oil prices is still affecting wages for Mining, Oil and Gas Exploration. Wages for this industry fell another 2 percent in Q3, causing their wages to be more than 3 percent below their peak in Q4 2014. Similarly, the barrel price of oil still lags far behind its price just over a year ago ($45.05 vs. $106.95). Wages have responded to this drop by also falling. Future wage growth hinges upon the price of oil and U.S. production levels.

  • Similarly, wages in Houston, a metro dominated by the oil industry, also took a dip this quarter, falling 0.1 percent. When local economies rely heavily on an industry or job type, their wages fall and rise with those trends.

  • Construction and Real Estate have recovered from earlier dips. Wages for the Construction industry and Real Estate industry grew (1 percent and 0.4 percent respectively) in Q3 2015. Each industry now sees wages with strong 12-month growth (1.7 and 1.3 percent respectively).
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Methodology for The PayScale Index: Trends in Compensation
The PayScale Index tracks quarterly changes in total cash compensation for full-time, private industry employees in the United States. In addition to a national index, it includes separate indices for specific industries, metropolitan areas, job categories, and company sizes. The PayScale Index uses 2006 average total cash compensation as a baseline.

See full methodology for compensation trend reports.
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