IT engineers working in Japan were paid an average of $36,061 in 2023, dropping six places from the previous year to rank 26 among 72 countries, a recent study found.
The fall highlights lagging wage growth in Japan despite growing global demand for engineers in the industry due to the rising popularity of artificial intelligence and other digital technologies, according to staffing service firm Human Resocia.
"Even disregarding the effects of a weak yen, (Japan's) competitiveness is receding when looking at salaries," a member of the research team said. "There are concerns that Japan is becoming a less attractive destination."
Switzerland led annual pay with an average of $102,839, followed by the United States and Israel at $92,378 and $76,500, respectively.
Excluding the effects of the weak yen, pay for IT workers in Japan rose just 0.4% compared to the previous year. That for the U.S. grew 3.6%, while China jumped 16.9%.
The number of people employed in IT across 109 countries analyzed by the company rose by an estimated 26.81 million, up 13.3% from the previous year.
By country, the U.S. saw the largest growth, adding about 4.45 million people, followed by India at 3.43 million and China at 3.28 million. Japan was ranked 4th, increasing by 1.44 million.
Human Resocia analyzed statistics from entities that include the International Labor Organization and the Organization for Economic Cooperation and Development.