LATAM Tech Talent Salary Report - Q1 2023

The LATAM Tech Talent Report is back! Welcome to Q1 2023, and we are happy to share the insights with you, whether you are a US company looking to leverage the immense value that LATAMs highly skilled workforce has or a tech worker based in Latin America.

This data is to help both our clients and candidates maximize their value in today’s market.

THE HEADLINES

Deflation in LATAM

Demand for LATAM tech talent has noticeably dropped off in Q1 2023.

On a seasonal basis January and Q1 are the highest volume months with contracts for tech workers based in Latin America on annual deals that usually get renewed in January or Q1.

We have seen a drop in numbers both in terms of transactions, both in terms of old contracts not being renewed and a drop in net new open positions in the market. In many cases, we have seen salaries accepted by candidates drop up to 35% due to the loosening of demand.

When we take a look at the latest data for January 2023 from Layoffs.fyi this drop in demand and numbers is understandable, with January 2023 seeing almost the same number of tech layoffs as in the whole of Q4 2022.

Wage Inflation still rages on in the US tech sector, despite tech layoffs

In the USA the January 2023 Tech Jobs Report by CompTIA showed that despite the big layoff numbers, employment still increased for a 26th straight month in December, suggesting that those workers who do get laid off can find work easily, once they have received the bad news.

This labor tightness is reflected in the salary changes we saw from Q4 2022 to to Q1 2023.

Ironically the opportunity for US businesses increased

There is a case to say that LATAM could be the canary in the coalmine for the remainder of US tech, however, it is important to remember that the USA has lost at least 3 million workers since the COVID pandemic which has put a squeeze on the labor market as a whole. Equally we have developer shortage globally too, which has also added pressure to tech wages.

For those US companies that have strong balance sheets and do not have to cut budgets, and who can invest in a down market, now is the time to take advantage of the deflation that has hit the LATAM market.

There are between 50% and 60% savings available for US businesses if they want to build their teams, or simply make some tactical hires remotely in LATAM.

DO YOU WANT TO SEE ALL DATA & CHARTS?

If you want the full report delivered directly to your inbox then please sign up using the button below. You will receive all the information on 22 positions we are monitoring on a quarterly basis including table data and graphs for every position!

We release them every January, April, July and October, so sign up to get the latest version in your inbox now, and then we’ll make sure we follow up with the latest reports when they are ready.

Bibliography

Layoffs,fyi “Tech Layoffs in 2022-2023

The Tech Jobs Report January 2023 by CompTIA

Soli Vargas Recruiting Blog “US jobs market is hot, but US tech is hotter”