Tech Industry Leads All Sectors in Salary Growth in Q2
Despite concerns such as high-profile layoffs in the tech industry, the latest Payscale report shows that tech sector salary growth still leads all other industries in the second quarter of 2026. The average annual salary for technical workers increased by 6.9%, making it one of only three industries with growth rates exceeding inflation. As companies reorganize around AI deployment, salary premiums for certain specialized roles have become significant, driving up the industry average.
Briefing at a Glance
- Despite market concerns overhigh-profile layoffs, salary growth in the tech industry in Q2 2026 still outpaced every other sector, according to a report released last week by compensation data firm Payscale. The company reviewed a proprietary dataset containing overreport. The firm analyzed a proprietary dataset covering more than36,000 job positions.
- The report showed that tech workers saw an average annual salary growth rate of6.9%in the quarter. Tech was one of onlythree industries wherewage growth exceeded the current inflation rate.
- Ruth Thomas, senior vice president and chief compensation strategist at Payscale, told CIO Dive that as companies adjust around AI deployment, certain specialized roles are commanding significant premiums in the market, which is pulling up average salaries across the tech sector.
Deep Dive
The current hiring landscape remains uneven, as companies push forward with their AI goals while demand rises for some job categories and falls for others, creating an uneven pattern of growth.
"The overarching story is that the workplace is being restructured for the future ideal AI organization, and what we're starting to see in the data is the impact of that restructuring," Thomas said.
In June, the number of publicly posted tech job openings exceeded600,000for the second consecutive month, indicating sustained strong demand for critical roles, aCompTIA reportshowed. As another indicator of the hiring landscape, the IT unemployment rate fell below3%for the first time this year.
As automation reaches more parts of operations, business leaders are facing long-term cost considerations. According toGartner's forecast, by 2028, the cost of AI-assisted software development will exceed that of manually written code. Meanwhile, automation-driven job displacement is only part of the story.
"One of the things we're observing is that lower-level roles in the field may be getting automated, while the rewards are going more to senior, more experienced positions," Thomas said.
But the full picture of AI's impact on hiring is complex. "It's not a simple story of everyone leaving and being replaced by AI," Thomas said.
For tech executives, attracting and retaining talent in critical roles requires close collaboration with HR and talent management leaders.
"CIOs themselves need to sit down with HR and talent leaders to think about where they truly need talent, which parts of the business will undergo skills transformation, plan for future skill needs, and develop very specific strategies for the talent and roles they require," Thomas said.