Will Software Engineering Salaries Go Down?
Software engineering has long been considered one of the highest-paying and most stable career paths. Over the past two decades, the demand for developers has skyrocketed, along with their salaries. But with the rise of artificial intelligence (AI), increasing globalization, and changing economic conditions, many people are now asking: Will software engineering salaries go down?
The short answer is: not significantly, and not across the board—but the landscape is shifting. Some salaries may stagnate or decline in certain regions or roles, while others may increase, especially for those with specialized skills. To understand this better, let’s explore the factors driving this change.
1. The Big Picture: Software Engineering Still Pays Well
Before diving into the possible reasons for salary changes, it’s important to emphasize: software engineering is still one of the most lucrative careers worldwide. According to Glassdoor, the average base salary for a software engineer in the U.S. in 2024 is around $120,000–$160,000, and even entry-level developers can start with salaries over $80,000 in many tech hubs.
So, while salaries may flatten or shift in certain categories, the profession as a whole remains financially rewarding.
2. Factors That Could Drive Salaries Down
🔸 A. AI and Automation
The biggest disrupter is artificial intelligence. Tools like GitHub Copilot, ChatGPT, and other AI coding assistants have drastically increased developer productivity. This means companies may need fewer engineers to do the same amount of work.
- Basic coding tasks are increasingly handled by AI.
- Junior developer roles that rely on repetitive coding may face pressure.
- Companies may choose to hire fewer engineers, leaning on AI instead.
However, AI tools still need human oversight, especially for architecture, logic, and debugging. So while automation may impact salaries at the entry-level, mid to senior roles will still command strong compensation.
🔸 B. Globalization and Remote Work
Remote work has created access to global talent pools. A company in California can now hire a skilled developer from India, Eastern Europe, or Latin America at a lower cost. This can lead to price pressure on U.S.- and EU-based developers, particularly in mid-level or undifferentiated roles.
- Local developers may compete with global talent willing to work for less.
- Remote-friendly companies may redistribute salary budgets across cheaper regions.
This doesn’t mean all salaries will drop. It means competition is broader, and developers will need to demonstrate value beyond just writing code.
🔸 C. Market Saturation of Generalists
As more people enter the software field through bootcamps and self-learning platforms, the supply of generalist developers is increasing. This can lead to saturation in lower-level roles, causing salaries to stagnate.
In contrast, developers who specialize in fields like machine learning, DevOps, or cybersecurity are still in short supply—and their salaries are rising.
3. Why Salaries Might Still Stay High (or Increase)
✅ A. High Demand in Emerging Areas
While some basic roles are at risk, there’s booming demand in areas like:
- AI/ML engineering
- Data engineering
- DevOps and site reliability
- Cloud infrastructure
- Cybersecurity
- Blockchain and smart contract development
These roles often require advanced skills and can’t easily be replaced or outsourced. As a result, they command premium salaries.
✅ B. Business Dependence on Tech
Every company is now a tech company—banks, hospitals, retailers, logistics companies—all rely on custom software. The ongoing digital transformation across industries ensures that software engineers will remain essential.
- Maintenance and scalability of legacy systems require human talent.
- Integrations, custom tools, and security work can’t be done by AI alone.
This continued demand supports healthy salary ranges, especially for experienced professionals.
✅ C. Productivity ≠ Fewer Developers (Yet)
Even though AI tools can write code, they can’t do everything. In fact, higher productivity often leads to more demand for new features, products, and systems.
- AI makes good engineers faster, but doesn’t replace them.
- Code still needs to be reviewed, tested, deployed, and maintained.
So rather than shrinking teams drastically, many companies are using AI to empower engineers, not eliminate them—at least for now.
4. Regional Trends in Software Salaries
Salaries vary drastically by region:
🌍 United States
- Big tech companies (FAANG) may trim excess compensation, but demand for senior roles is strong.
- Bay Area salaries may stabilize, but still remain high due to cost of living.
- Startups may offer more equity and flexible pay structures.
🌍 Europe
- Countries like Germany, the Netherlands, and the UK continue to offer competitive salaries.
- Remote roles from U.S. companies help European engineers access higher wages.
🌍 India, Brazil, Eastern Europe
- Salaries are rising due to demand and improved skill sets.
- More companies are willing to pay top dollar for senior offshore engineers.
- However, junior positions face more competition and downward wage pressure.
5. What Developers Can Do to Stay Competitive
If you’re worried about salary drops, here’s how to future-proof your career:
🔹 Specialize
Don’t just be a coder—become an expert in a field like:
- AI/ML
- Cloud engineering
- Security
- Data pipelines
- Systems design
Specialists are harder to replace and can demand higher pay.
🔹 Embrace AI, Don’t Fear It
Use AI to enhance your productivity. Learn how to:
- Write better prompts
- Review AI-generated code
- Build with APIs from OpenAI, Google, or HuggingFace
Being an “AI-powered developer” makes you more valuable.
🔹 Communicate and Collaborate
Soft skills matter more than ever. Developers who can:
- Work across teams
- Understand business needs
- Present their work effectively
…are harder to replace and often become team leads or architects—roles that command higher pay.
🔹 Build a Strong Portfolio
Showcase your work. Companies love to see:
- Side projects
- GitHub activity
- Open-source contributions
- Case studies or documentation
6. Long-Term Outlook: Will Salaries Go Down Permanently?
It’s unlikely that software engineering salaries will collapse across the board. However:
- Entry-level roles may see stagnation or minor drops.
- Generalist positions could become more competitive.
- High-cost regions may lose some pricing power due to remote globalization.
But at the same time:
- Specialized engineers will continue to see strong salary growth.
- Senior-level positions remain in high demand.
- Tech-enabled roles in non-tech companies will grow in both number and pay.
Conclusion: Change is Coming, But Not the End
Software engineering salaries are not going away—but they are adjusting to a new reality. AI, globalization, and economic changes are reshaping the field, but the core need for talented developers remains strong.
Salaries may flatten for some, but for those who adapt, specialize, and embrace the new tools, the future looks promising—and still very profitable.