No one whose job involves working at a computer is immune to them. Evidence can be seen even in the information and communications sector, traditionally one of the highest-paying industries in Slovakia.
In February, the sector recorded its largest decline in average real wages since December 2022, with year-on-year wages falling by 10.3%. According to the latest data from the Statistical Office, the average monthly salary in the sector was €2,436, which is €183 less than in the same period last year.
“The reason is clearly the rise of artificial intelligence, which was bound to bring this kind of development,” said Ondrej Macko, editor-in-chief of TouchIT.
The impact of AI on IT salaries
According to the Association of Employers’ Unions and Associations, increased use of AI and growing automation are changing the structure of jobs in the IT sector.
“Today, even less experienced employees can perform tasks that were previously reserved for senior specialists,” said the association’s spokesperson, Miriam Filová.
As a result, companies are increasingly filling positions that once commanded higher salaries with junior or less experienced workers, contributing to a decline in average wages.
Employers also view this as a natural correction after a period when IT professionals were heavily overpaid due to strong demand and labor shortages.
“Companies are increasingly optimizing costs, partly because of fiscal consolidation measures, while also improving efficiency through new technologies,” Filová added.
AI-related layoffs in Košice
One example is the U.S. telecommunications company AT&T, which plans mass layoffs at its branch in Košice. More than 200 employees handling incoming calls, along with their managers, are expected to lose their jobs from July 1. AI adoption and the impact of government fiscal consolidation are cited as key reasons.
Despite this, employment in the information and communications sector has continued to grow year-on-year for eight consecutive months. Growth was modest at 0.1% at the start of the year and improved to 0.7% in February.
Companies are becoming more cautious
According to Mária Šurimová, Operations Manager at the Košice IT Valley, the number of open IT positions has fallen by more than 50% over the past three years.
Companies are taking a more cautious approach to hiring, placing greater emphasis on efficiency, specialized skills, and experienced professionals.
“The ICT labor market is undergoing a significant transformation,” Šurimová said.
She noted that wage developments are influenced by multiple factors, including legislative changes, new payroll contribution requirements, and changes in employers’ cost structures. Higher-income workers may also seek alternative forms of cooperation or self-employment to reduce the impact of increased taxes and contributions—a common practice in the IT sector.
