I will just add to the chorus here: * I graduated as a Computer Engineer. * Worked as EE/EEE entire career (currently almost 14 years). * Half of my class of EEs and CEs went into other careers immediately after graduation because money was better. * 10 years later my best conservative estimate (based on sampling from friends from my year) is that at least another quarter has left because money. * I have mainly worke…
I don’t understand how the market dynamics work here. As a software engineer, I feel like the market is flooded with workers, and that it is an easy job. I have no idea how we’ve managed to sustain these salaries for so long. At some point, I keep expecting a correction in salaries simply due to supply / demand. I also keep thinking, surely other industries will start paying more and treating folks better, so they ca…
In most industries, the money to pay more does not exist.
American companies dominate in software, and they are also highly profitable. Because immigrating to the US is difficult and because many people don't even want to move there, there is a shortage of software engineers in the US. Compensation is primarily driven by the domestic job market, where businesses compete for talent.
In other areas of technology, American companies are not so dominant. There is also more competition, driving the profits down. If an American business pays too much, it will get less talent for the same money. Their products will be worse and more expensive, and they will lose to their competitors.
As someone from Finland, I've been familiar with this dynamic since childhood. You hear about it in the news all the time. High wages are a grave threat to the economy, because they make our businesses less competitive.