Payscale Labor Market & Wage Trends Report: Technology Wage Growth Outpaces All Industries

(MENAFN- GlobeNewsWire - Nasdaq) New Q1 data shows wage growth remains uneven across sectors, with sustained but slow hiring demand, 7.1% average turnover, and intensified competition for critical skills driving more targeted pay decisions

BOSTON, April 09, 2026 (GLOBE NEWSWIRE) -- Wage growth across the U.S. labor market remains uneven but resilient, with the technology sector leading all industries at 6.8% year-over-year, according to the Q1 Payscale Labor Market and Wage Trends Report, produced by Payscale, the leading provider of compensation intelligence solutions.

Despite broader signs of labor market cooling, hiring and separations have both slowed – creating a more static“low hire, low fire” environment. Average turnover is 7.1% showing broad but tepid replacement demand, with some industries such as Oil, Gas, and Consumable Fuels and Chemicals running higher. This combination is reinforcing competition for specialized skills and putting pressure on employers to take a more targeted, data-driven approach to compensation.

The Payscale Labor Market and Wage Trends Report is an independent view of the U.S. labor market based on aggregated, de-identified HRIS data from 9.7 million employees across more than 3,700 participating organizations. The analysis draws from Peer, Payscale's continuously refreshed, survey‐grade compensation dataset, which is updated daily and includes validated job, pay, turnover, and tenure records. This data provides a fresh picture of labor demand, wage growth, and workforce dynamics.

“Competition for critical skills remains intense - particularly in technology and operations roles,” said Ruth Thomas, chief compensation strategist at Payscale.“In this environment, broad, uniform pay increases are becoming less effective. Employers are increasingly shifting toward more targeted compensation approaches, focusing on areas where demand is highest, turnover risk is elevated, and labor market pressures vary by role and location.”

Q1 2026 Labor Market & Wage Trends Report Highlights

View the Payscale Labor Market and Wage Trends Report at:

• Labor Demand: Labor demand surged dramatically in health care support and skilled trades, with Kitchen Assistants in Health Care (1187%), Equipment Operators in Distribution, Logistics & Transportation (233%), and Telecommunications Technicians (129%) showing the largest year-over-year increases.
• Top Metro for Wage Growth: Las Vegas, Nevada ranks first among U.S. metros with 5.1% wage growth, signaling heightened competition for talent in fast‐growing regional markets.
• Top Industry for Wage Growth: Technology tops all industries at 6.8% year‐over‐year wage growth, far outpacing the national average and underscoring continued competition for tech talent.
• Highest Industry Turnover: Oil, Gas & Consumable Fuels reports the highest turnover rate at 10.0%, highlighting ongoing retention challenges in energy extraction sectors.

About Payscale

Payscale is the original compensation innovator for organizations who want to scale their business with pay and transform their largest investment into their greatest advantage. With decades of innovation in sourcing reputable data and developing AI-powered tools, Payscale delivers actionable insights that turn pay from a cost to a catalyst. Its suite of solutions - Payfactors, Marketpay, and Paycycle - empower top companies in the U.S. and businesses like Cintas, ZoomInfo, Chipotle, Brookdale Senior Living, Ohio State University, American Airlines, and TJX Companies.

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