FuturByte

Hiring developers in Chicago

What the published data says about the Chicago-Naperville-Elgin, IL-IN technical labour market, and what it means when you are deciding whether to hire here, hire elsewhere, or build the team differently.

The local market in numbers

The Bureau of Labor Statistics counts 40,370 software developers employed in the Chicago-Naperville-Elgin, IL-IN metropolitan area, at a median annual wage of $134,380. The national median for the same occupation is $135,980, which puts Chicago within a percentage point of the country as a whole. Among the 377 US metropolitan areas where this occupation is separately published, Chicago ranks 33 by median wage.

Those two numbers answer different questions and are often confused. The wage figure tells you what a seat costs. The employment figure tells you how likely you are to fill it. A market can be expensive and deep, expensive and thin, cheap and deep, or cheap and thin, and the hiring strategy that follows is different in each case. Reading only the wage column is the most common way a hiring plan goes wrong before it starts.

Software developer annual wages, Chicago, May 2025
Software developer annual wages, Chicago, May 2025$134,380Median$83,820$203,41010th pct90th pctMiddle half $105K to $168K

What the wage distribution shows

In Chicago the 10th percentile sits at $83,820 and the 90th at $203,410, a spread of about 2.4 times. The middle half of the market, between the 25th and 75th percentiles, runs from $104,530 to $167,650. That band is the number worth carrying into a budget conversation, because it describes where most actual offers land rather than where the single midpoint sits.

That spread is narrower than the national spread of about 2.6 times. A wide local spread usually means the metro contains several different markets under one label: a well-paid cluster attached to a few large employers, and a much broader base of internal IT and agency work that is priced quite differently. When you benchmark against a local median without knowing which of those clusters your role sits in, the benchmark is close to meaningless.

One more caution on reading these figures. They are wages paid by employers to people on a payroll in this metro area. They are not contractor rates, they do not include equity, bonus or benefits, and they say nothing about what the same work costs when it is done by a team somewhere else. They are the right baseline for the question “what would this cost if we hired locally” and the wrong baseline for almost every other question.

Pay across every technical occupation

Software development is one of several technical occupations the Bureau publishes for this metro. The full set is worth reading because roles compete for the same people: a strong back-end developer in Chicago can be recruited into a data or security title, and the pay in those adjacent columns is part of what you are bidding against.

Median annual wage by technical occupation, Chicago
Median annual wage by technical occupation, ChicagoIT managers: $173,760IT managersIT managers$173,760Database architects: $147,490Database architectsDatabase architects$147,490Network architects: $143,800Network architectsNetwork architects$143,800Software developers: $134,380Software developersSoftware developers$134,380Info security analysts: $125,310Info security analystsInfo security analysts$125,310Database administrators: $109,680Database administratorsDatabase administrators$109,680Data scientists: $107,640Data scientistsData scientists$107,640Software QA and testers: $105,580Software QA and testersSoftware QA and testers$105,580Systems analysts: $103,490Systems analystsSystems analysts$103,490Network administrators: $103,170Network administratorsNetwork administrators$103,170Computer occupations, other: $101,660Computer occupations, otherComputer occupations, other$101,660Computer programmers: $99,750Computer programmersComputer programmers$99,750Web developers: $96,870Web developersWeb developers$96,870Web and digital designers: $87,920Web and digital designersWeb and digital designers$87,920
Technical occupations in Chicago-Naperville-Elgin, IL-IN, annual wages, May 2025
OccupationEmployed25th percentileMedian75th percentile90th percentile
Software Developers40,370$104,530$134,380$167,650$203,410
Web Developers2,790$79,140$96,870$117,100$134,330
Web and Digital Interface Designers1,470$73,220$87,920$132,290$162,050
Computer Programmers650$66,710$99,750$131,590$152,940
Software QA Analysts and Testers5,010$83,310$105,580$130,920$152,900
Data Scientists7,940$84,600$107,640$138,210$168,880
Information Security Analysts3,480$99,760$125,310$158,210$174,450
Computer Systems Analysts14,660$81,030$103,490$129,960$151,490
Database Architects1,260$125,240$147,490$168,130$200,120
Database Administrators1,870$77,410$109,680$135,990$164,050
Computer Network Architects5,400$120,070$143,800$169,500$205,340
Network and Computer Systems Administrators6,950$82,750$103,170$130,120$162,290
Computer and Information Systems Managers24,950$138,190$173,760$214,880$280,060
Computer Occupations, All Other7,800$66,990$101,660$137,820$170,090

Blank cells are where the Bureau does not publish an estimate for this metro, usually because the sample is too small to release.

Every one of these occupations is separately published for this metro, which is itself a signal: the Bureau suppresses estimates where the sample is too small, so a complete set indicates a technical labour market with real depth across specialisms rather than a single dominant employer.

Median wage for software developers, Chicago against comparable US metros
Median wage for software developers, Chicago against comparable US metrosSan Diego, CA: $163,270San Diego, CASan Diego, CA$163,270Los Angeles, CA: $160,920Los Angeles, CALos Angeles, CA$160,920Portland, OR: $156,000Portland, ORPortland, OR$156,000Washington, D.C.: $154,930Washington, D.C.Washington, D.C.$154,930Baltimore, MD: $138,900Baltimore, MDBaltimore, MD$138,900Denver, CO: $137,610Denver, CODenver, CO$137,610Charlotte, NC: $135,920Charlotte, NCCharlotte, NC$135,920Chicago, IL: $134,380Chicago, ILChicago, IL$134,380Austin, TX: $134,120Austin, TXAustin, TX$134,120Dallas-Fort Worth, TX: $133,290Dallas-Fort Worth, TXDallas-Fort Worth, TX$133,290Philadelphia, PA: $133,040Philadelphia, PAPhiladelphia, PA$133,040Atlanta, GA: $132,960Atlanta, GAAtlanta, GA$132,960Raleigh, NC: $132,770Raleigh, NCRaleigh, NC$132,770Miami, FL: $132,650Miami, FLMiami, FL$132,650

Reading each technical occupation in Chicago

The table above is a summary. Each row behind it describes a different hiring problem, and the gap between the local and the national figure is rarely the same from one row to the next. Where a metro is expensive in one occupation and ordinary in another, that difference is usually the clearest signal available about which employers are actually competing for people here.

Software Developers

The Bureau counts 40,370 people in this occupation in the Chicago-Naperville-Elgin, IL-IN area, at a median of $134,380 against a national median of $135,980, which is within a percentage point of the national figure. The middle half of the local market runs from $104,530 to $167,650. A location quotient of 0.82 means the work is less concentrated here than the size of the local economy would predict, so a local-only search in this specialism will be the slow part of the plan. The local band runs from $83,820 at the 10th percentile to $203,410 at the 90th, so the title alone sets the budget only very loosely.

Web Developers

The Bureau counts 2,790 people in this occupation in the Chicago-Naperville-Elgin, IL-IN area, at a median of $96,870 against a national median of $92,650, which is about 5% above the national figure. The middle half of the local market runs from $79,140 to $117,100. A location quotient of 1.37 means the work is more concentrated here than the size of the local economy would predict, so sourcing should be straightforward and closing will be the harder half. The local band runs from $72,790 at the 10th percentile to $134,330 at the 90th, so the title alone sets the budget only very loosely.

Web and Digital Interface Designers

The Bureau counts 1,470 people in this occupation in the Chicago-Naperville-Elgin, IL-IN area, at a median of $87,920 against a national median of $104,000, which is about 15% below the national figure. The middle half of the local market runs from $73,220 to $132,290. A location quotient of 0.45 means the work is less concentrated here than the size of the local economy would predict, so a local-only search in this specialism will be the slow part of the plan. The local band runs from $59,450 at the 10th percentile to $162,050 at the 90th, so the title alone sets the budget only very loosely.

Computer Programmers

The Bureau counts 650 people in this occupation in the Chicago-Naperville-Elgin, IL-IN area, at a median of $99,750 against a national median of $100,390, which is within a percentage point of the national figure. The middle half of the local market runs from $66,710 to $131,590. A location quotient of 0.24 means the work is less concentrated here than the size of the local economy would predict, so a local-only search in this specialism will be the slow part of the plan. The local band runs from $62,830 at the 10th percentile to $152,940 at the 90th, so the title alone sets the budget only very loosely.

Software QA Analysts and Testers

The Bureau counts 5,010 people in this occupation in the Chicago-Naperville-Elgin, IL-IN area, at a median of $105,580 against a national median of $104,300, which is within a percentage point of the national figure. The middle half of the local market runs from $83,310 to $130,920. A location quotient of 0.93 means the work is about as concentrated here than the size of the local economy would predict, so a local-only search in this specialism will be the slow part of the plan. The local band runs from $67,010 at the 10th percentile to $152,900 at the 90th, so the title alone sets the budget only very loosely.

Data Scientists

The Bureau counts 7,940 people in this occupation in the Chicago-Naperville-Elgin, IL-IN area, at a median of $107,640 against a national median of $120,230, which is about 10% below the national figure. The middle half of the local market runs from $84,600 to $138,210. A location quotient of 1.04 means the work is about as concentrated here than the size of the local economy would predict, so a local-only search in this specialism will be the slow part of the plan. The local band runs from $70,740 at the 10th percentile to $168,880 at the 90th, so the title alone sets the budget only very loosely.

Information Security Analysts

The Bureau counts 3,480 people in this occupation in the Chicago-Naperville-Elgin, IL-IN area, at a median of $125,310 against a national median of $129,180, which is about 3% below the national figure. The middle half of the local market runs from $99,760 to $158,210. A location quotient of 0.63 means the work is less concentrated here than the size of the local economy would predict, so a local-only search in this specialism will be the slow part of the plan. The local band runs from $79,460 at the 10th percentile to $174,450 at the 90th, so the title alone sets the budget only very loosely.

Computer Systems Analysts

The Bureau counts 14,660 people in this occupation in the Chicago-Naperville-Elgin, IL-IN area, at a median of $103,490 against a national median of $105,850, which is about 2% below the national figure. The middle half of the local market runs from $81,030 to $129,960. A location quotient of 0.97 means the work is about as concentrated here than the size of the local economy would predict, so a local-only search in this specialism will be the slow part of the plan. The local band runs from $61,860 at the 10th percentile to $151,490 at the 90th, so the title alone sets the budget only very loosely.

Database Architects

The Bureau counts 1,260 people in this occupation in the Chicago-Naperville-Elgin, IL-IN area, at a median of $147,490 against a national median of $139,500, which is about 6% above the national figure. The middle half of the local market runs from $125,240 to $168,130. A location quotient of 0.65 means the work is less concentrated here than the size of the local economy would predict, so a local-only search in this specialism will be the slow part of the plan. The local band runs from $100,510 at the 10th percentile to $200,120 at the 90th, so the title alone sets the budget only very loosely.

Database Administrators

The Bureau counts 1,870 people in this occupation in the Chicago-Naperville-Elgin, IL-IN area, at a median of $109,680 against a national median of $104,620, which is about 5% above the national figure. The middle half of the local market runs from $77,410 to $135,990. A location quotient of 0.92 means the work is about as concentrated here than the size of the local economy would predict, so a local-only search in this specialism will be the slow part of the plan. The local band runs from $60,150 at the 10th percentile to $164,050 at the 90th, so the title alone sets the budget only very loosely.

Computer Network Architects

The Bureau counts 5,400 people in this occupation in the Chicago-Naperville-Elgin, IL-IN area, at a median of $143,800 against a national median of $134,050, which is about 7% above the national figure. The middle half of the local market runs from $120,070 to $169,500. A location quotient of 1.04 means the work is about as concentrated here than the size of the local economy would predict, so a local-only search in this specialism will be the slow part of the plan. The local band runs from $95,930 at the 10th percentile to $205,340 at the 90th, so the title alone sets the budget only very loosely.

Network and Computer Systems Administrators

The Bureau counts 6,950 people in this occupation in the Chicago-Naperville-Elgin, IL-IN area, at a median of $103,170 against a national median of $99,130, which is about 4% above the national figure. The middle half of the local market runs from $82,750 to $130,120. A location quotient of 0.76 means the work is less concentrated here than the size of the local economy would predict, so a local-only search in this specialism will be the slow part of the plan. The local band runs from $68,990 at the 10th percentile to $162,290 at the 90th, so the title alone sets the budget only very loosely.

Computer and Information Systems Managers

The Bureau counts 24,950 people in this occupation in the Chicago-Naperville-Elgin, IL-IN area, at a median of $173,760 against a national median of $175,140, which is within a percentage point of the national figure. The middle half of the local market runs from $138,190 to $214,880. A location quotient of 1.28 means the work is more concentrated here than the size of the local economy would predict, so sourcing should be straightforward and closing will be the harder half. The local band runs from $112,980 at the 10th percentile to $280,060 at the 90th, so the title alone sets the budget only very loosely.

Computer Occupations, All Other

The Bureau counts 7,800 people in this occupation in the Chicago-Naperville-Elgin, IL-IN area, at a median of $101,660 against a national median of $116,580, which is about 13% below the national figure. The middle half of the local market runs from $66,990 to $137,820. A location quotient of 0.62 means the work is less concentrated here than the size of the local economy would predict, so a local-only search in this specialism will be the slow part of the plan. The local band runs from $57,690 at the 10th percentile to $170,090 at the 90th, so the title alone sets the budget only very loosely.

How concentrated the work is

The location quotient for software developers in Chicago is 0.82. The measure compares the share of local employment in an occupation against the national share, so 1.00 means exactly what the size of the local economy would predict. At 0.82, this market has less of this work than its size would suggest.

In a market at this concentration the binding constraint is usually supply rather than competition. There are fewer people to find, and a search that insists on local presence will take longer than the same search in a concentrated market, even though the offers themselves are easier to close. Widening the geography early is generally cheaper than extending the timeline later.

Expressed another way, there are about 8.9 software developers for every 1,000 jobs of any kind in this metro. That density figure is the one to quote when someone asks whether the local market can absorb a team of five or a team of fifty, because it scales with the size of the economy rather than against a national average.

What a local seat actually costs

A salary figure is not a budget. The number that belongs in a plan is the employer-side cost of keeping one person in one seat for a year, and it is reliably higher than the wage line that gets quoted. The arithmetic below uses the published software developers median for Chicago and the statutory 2026 employer rates, so every figure in it can be checked.

Employer payroll cost of one software developer in Chicago, 2026 rates
Wage pointAnnual wageEmployer OASDI and MedicareWage plus these taxesAdded
25th percentile$104,530$7,997$112,5277.6%
Median$134,380$10,280$144,6607.6%
75th percentile$167,650$12,825$180,4757.6%

Employer share of OASDI at 6.2% up to a wage base of $184,500, plus Medicare at 1.45% with no cap. Source: Social Security Administration, Contribution and Benefit Base, retrieved 2026-09-25.

That is the floor, not the total. On top of it sit federal and state unemployment insurance, workers' compensation, health cover, retirement contributions, equipment, software licences, office cost where there is an office, and the recruitment fee or internal recruiter time that brought the person in. None of those are in the wage figure and all of them are real.

There is one more line that almost never makes it into a comparison, and it is usually the largest. A seat that stays empty for three months has cost you a quarter of the year's output from that role. Whatever the wage, the delivery cost of the vacancy is the same, and in a market where a search genuinely takes that long it dominates the difference between one hiring option and another. When teams tell us a local hire and a remote team came out close on cost, the time to fill is nearly always the variable that was left out.

Working across time zones from Chicago

If any part of the team is not in Central, the working day is a design decision rather than an accident. Chicago runs on Central time. The question that matters is not how many hours of difference there are, but how many hours of deliberate overlap the team commits to and what is required to happen inside them.

The pattern that works is a fixed overlap window of two to four hours, published and treated as real. Inside it go the things that cost a day when they are done asynchronously: code review on anything non-trivial, decisions with more than one reasonable answer, and the conversation when somebody is stuck. Outside it goes focused work. Teams that skip the fixed window do not save the meeting time; they pay it back several times over in waiting.

Two practices decide whether this works. The first is writing decisions down where the other half of the team will find them, because a decision made in a corridor in Chicago does not exist for anyone who was asleep. The second is that nobody should ever be blocked overnight on a permission, an environment or an access request; those are the failures that turn an eight-hour offset into a lost day, and they are entirely preventable.

How the Chicago market has moved

One year of data describes a market. Three years starts to describe a direction. These are the published figures for software developers in the Chicago-Naperville-Elgin, IL-IN area across the last three releases.

Median wage for software developers in Chicago, three published releases
Median wage for software developers in Chicago, three published releasesMay 2023: $129,180May 2023May 2024: $130,030May 2024May 2025: $134,380May 2025$129,180$134,380
Software developers in Chicago, May 2023 to May 2025
Reference periodEmployedMedian wageLocation quotient
May 202341,210$129,1800.84
May 202441,320$130,0300.86
May 202540,370$134,3800.82

Source: BLS Occupational Employment and Wage Statistics, metropolitan area files for May 2023, May 2024 and May 2025.

Over those two years the median wage moved up 4%, from $129,180 to $134,380. Employment moved down 2% over the same period, from 41,210 to 40,370. Pay rising while employment falls usually means the composition of the market is shifting rather than that everyone got a raise: junior and mid-level roles thinning out while senior roles hold. If you are hiring at the experienced end, expect the local band to be firmer than the headline suggests.

One caveat belongs with this table, and it is the Bureau's own. These estimates are produced from overlapping survey panels and the methodology is revised between releases, so they are not designed to be read as a clean time series. A two-point difference between years is noise. A move of the size seen here is worth noting as a direction rather than quoting as a growth rate.

Nearby markets worth comparing

Hiring decisions are rarely made between one city and the rest of the country. They are made between a handful of markets a team is already willing to consider. These are the metros closest to Chicago on that basis, with the same figures side by side.

Software developers, Chicago and comparable metros, May 2025
Metro areaEmployedMedian wagevs ChicagoLocation quotient
Chicago-Naperville-Elgin, IL-IN40,370$134,380—0.82
Minneapolis-St. Paul-Bloomington, MN-WI27,410$130,920-3%1.29
Columbus, OH9,880$122,340-9%0.82
Detroit-Warren-Dearborn, MI24,870$130,760-3%1.20

Percentages compare each metro against Chicago, not against the national median.

Differences of a few percent between neighbouring metros are not worth planning around; they fall well inside the error on any single hire. Differences of twenty percent or more are worth planning around, and so is a large gap in employment, because that is the number that decides whether a shortlist exists at all.

The industries that shape hiring here

Wage tables describe the price of labour. They do not describe what the labour has been doing, and that is usually the part that decides whether a candidate fits. The anchors of the Chicago economy are trading and derivatives, logistics and freight, insurance and manufacturing IT.

Trading and derivatives

Developers who have come up through trading and derivatives in this market tend to arrive with domain knowledge that is genuinely hard to buy, and with working habits formed by that sector's constraints: its release cadence, its tolerance for risk, its review and approval culture, and the compliance obligations it carries. Both halves travel with the candidate. When the sector you are hiring into shares those constraints, that background is worth paying for. When it does not, the adjustment is real and it is worth asking in the interview how they would work differently.

Logistics and freight

Developers who have come up through logistics and freight in this market tend to arrive with domain knowledge that is genuinely hard to buy, and with working habits formed by that sector's constraints: its release cadence, its tolerance for risk, its review and approval culture, and the compliance obligations it carries. Both halves travel with the candidate. When the sector you are hiring into shares those constraints, that background is worth paying for. When it does not, the adjustment is real and it is worth asking in the interview how they would work differently.

Insurance

Developers who have come up through insurance in this market tend to arrive with domain knowledge that is genuinely hard to buy, and with working habits formed by that sector's constraints: its release cadence, its tolerance for risk, its review and approval culture, and the compliance obligations it carries. Both halves travel with the candidate. When the sector you are hiring into shares those constraints, that background is worth paying for. When it does not, the adjustment is real and it is worth asking in the interview how they would work differently.

Manufacturing IT

Developers who have come up through manufacturing IT in this market tend to arrive with domain knowledge that is genuinely hard to buy, and with working habits formed by that sector's constraints: its release cadence, its tolerance for risk, its review and approval culture, and the compliance obligations it carries. Both halves travel with the candidate. When the sector you are hiring into shares those constraints, that background is worth paying for. When it does not, the adjustment is real and it is worth asking in the interview how they would work differently.

The same concentration explains where the competition for a candidate comes from. In a market anchored by a small number of large employers in one sector, you are usually bidding against those employers directly, and against their compensation structure rather than against another startup.

Where the talent comes from

The main academic feeders into this market are University of Chicago, Northwestern University and University of Illinois Chicago. Pipelines matter most for junior hiring: graduate intake is where a local university genuinely changes the supply you can reach. At senior level, people are recruited out of other companies rather than out of programmes, and the relevant pipeline is the set of local employers large enough to have trained them.

This is worth being blunt about when a hiring plan leans on a university reputation. A strong local computer science department improves your odds of finding good juniors and has almost no effect on your odds of finding a senior engineer who has already run the kind of system you are building. Those are two different searches with two different sources, and conflating them is a common reason a plan that looked reasonable produces nobody.

Where hiring plans go wrong in this market

These are the failures we see most often in Chicago specifically. They are not generic hiring advice; each one follows from something in the figures above.

Insisting on local presence in a thin market

At this concentration the pool is the constraint, and no amount of process improvement creates people who are not there. Teams that hold a local-only requirement for a specialist role here routinely spend two quarters on a search that a wider geography would have closed in six weeks.

Writing the brief around a technology instead of a problem

A specification that lists ten technologies and no description of the system filters for people who match keywords rather than people who can do the work. It is also the main reason shortlists in this market get rejected late, because the mismatch only becomes visible in a technical conversation.

Costing the seat and not the vacancy

The loaded-cost table above is the easy half. The expensive half is the months the role is open, and that cost is identical whichever option you eventually choose. Any comparison between hiring locally and building the team another way that leaves out time to fill has already reached the wrong answer.

Treating one metro as one market

The wage spread here is wide enough that Chicago contains several distinct markets under a single label. Benchmarking a role against the metro median without knowing which of those clusters it belongs to gives a number that is precise and wrong.

What this means in practice

Pulling the figures above together, these are the practical consequences for a team hiring into Chicago.

Hiring by technology in Chicago

Published pay and market conditions for Chicago-Naperville-Elgin, IL-IN, read against the specific technology you are hiring for.

Frequently asked questions

What does a software developer cost in Chicago?

The Bureau of Labor Statistics puts the median annual wage for software developers in the Chicago-Naperville-Elgin, IL-IN metropolitan area at $134,380, which is within a percentage point of the national median of $135,980. The middle half of the local market sits between $104,530 and $167,650. Those are wages only: employer taxes, benefits, equipment and recruitment cost sit on top, and a vacant seat costs the delivery schedule rather than the payroll line.

How large is the Chicago developer market?

The Bureau counts 40,370 software developers employed in the Chicago-Naperville-Elgin, IL-IN metropolitan area. Employment counts matter more than wage figures when you are estimating how long a search will take, because a high median in a thin market usually means a long search rather than an expensive one.

Is software development concentrated in Chicago?

The location quotient for software developers in this metro is 0.82. A value above 1 means the occupation is more concentrated here than in the country as a whole. At 0.82, Chicago the occupation is less concentrated here than nationally. The practical consequence is that local supply is thinner than the headline employment number suggests, and widening the search is usually faster than waiting.

Should we hire locally in Chicago or work with a remote team?

It depends on what the work needs rather than on cost alone. Work that requires being in a room with regulated data, physical hardware or a specific client site has to be local. Most product engineering does not. The honest comparison is not a local salary against an hourly rate, but the fully loaded cost of a local seat, including the months it stands empty, against the cost and the coordination overhead of a team in another time zone.

How does the Chicago time zone affect working with a distributed team?

Chicago runs on Central. The workable pattern for most teams is a committed overlap window rather than full-day coverage: two to four hours when everyone is online for review, decisions and anything that would otherwise take a day of messages. Teams that try to run without a fixed overlap lose more to waiting than they ever save on rate.

Which industries drive technical hiring in Chicago?

The local anchors are trading and derivatives, logistics and freight, insurance and manufacturing IT. That mix matters when you read a CV: a developer whose experience comes from the dominant local industry brings domain knowledge you may value, and habits formed in that industry that may not fit a different kind of product.

Where does the local talent pipeline come from?

The main feeders are University of Chicago, Northwestern University and University of Illinois Chicago. University pipelines matter most for junior hiring and least for senior hiring, where people are recruited out of other companies rather than out of programmes.