After two straight quarters of modest wage increases, temporary technology wages have stalled, according to the Q2 Yoh Index of Technology Wages released by Yoh Services, a technology staffing firm. In March, wages stood at $30.98 an hour. By June, wages had only increased one cent to $30.99 an hour, the firm reported.
This reversal of the six-month trend of wage increases suggests a slackening demand for temporary workers, according to Yoh.
“The stagnation of temporary technical professional wages is partly due to the ongoing uncertainty created by the slow-moving and fragile economy,” says Lori Schultz, president of Yoh. “While wages and demand had been increasing prior to the second quarter, the deceleration of GDP growth, the fear of a double dip recession, and the anxiety over the potential downgrade of the United States’ credit rating have contributed to the decrease in temporary technical demand and flat wages.”
However, the good news is U.S. corporations are holding record amounts of cash on their balance sheet, indicating that when uncertainty dissipates, companies will be able to take immediate advantage of building their businesses. They will likely look to the temporary workforce to jump-start these strategic objectives, according to a Yoh blog post by Joel Capparella, vice president of marketing for Yoh.