Non-Tech Sectors Now Outpaying Tech Firms for Software Talent

Research indicates that non-tech industries, specifically healthcare and banking, are currently offering higher compensation for software engineers than technology firms. Healthcare and life sciences companies are paying up to 17% more, while banking institutions are offering 13% more.

This trend is largely attributed to the growing demand for AI capabilities, with job listings requiring these skills increasing fivefold over the past year. Experts noted that businesses outside of the traditional tech sector are now prioritizing investments to capture the potential benefits of AI.

The labor market is also being influenced by significant job cuts within the tech industry. U.S. tech companies reported over 165,000 layoffs in the first nine months of 2026, a substantial increase compared to the previous year.

Major companies including Microsoft, Oracle, Meta, and Block have all implemented workforce reductions recently. In response, 55% of non-tech organizations surveyed reported that they are actively recruiting talent from the pool of workers affected by these tech-sector layoffs.