TLDR: The 2025 tech salary landscape reveals a strong surge for product managers, with average salaries rising by nearly 30%, while data engineers experience minimal growth. This shift is attributed to the increasing demand for product innovation, partly fueled by the efficiency gains from generative AI, and a market preference for multi-faceted engineers over specialized data roles.
The technology sector’s salary trends for 2025 present a contrasting picture for different roles, according to the latest Stack Overflow developer survey, which gathered insights from over 49,000 respondents. Product managers are experiencing a period of robust growth, while data engineers face a less lucrative environment.
Product managers have seen the most significant salary increase across the tech industry, with their average compensation rising by an impressive 29.3% to approximately $100,000. This upward trend marks a notable shift from a few years ago when some firms, like Meta, were reportedly reducing product management headcount. The current resurgence is partly attributed to the growing prominence of product roles, particularly within financial services and fintech sectors. Major institutions like JPMorgan have emphasized their focus on building new platforms and products, leading to increased hiring. LinkedIn data indicates that over 500 product managers have been hired by major U.S. investment banks in the past year alone, with VP-level positions at JPMorgan in New York offering salaries up to $200,000. Generative AI developments are also playing a role, as banks leverage AI tools to automate laborious tasks for engineers, thereby freeing up resources to focus on new product development.
Conversely, data engineers are navigating a more challenging salary landscape. Their salaries saw the smallest increase among tech roles, rising by a modest 5.1% to an average of $81,000. This comparative stagnation is largely due to a market shift where firms are increasingly seeking multi-faceted engineers rather than highly specialized data professionals. An anonymous buy-side technology headhunter noted that ‘bog standard full-stack Java developers’ are becoming less sought after, with top applicants now expected to possess skills in ‘Python too, and data techniques at the same time.’ This indicates a demand for broader technical capabilities that encompass data engineering within a more generalized engineering skillset.
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Overall, the 2025 salary data underscores a dynamic tech job market where adaptability, a focus on product innovation, and a versatile skill set are key drivers of career and compensation growth.
