The IT sector remains a bright spot in the Australian labor market going into 2025, with the most positive employment outlook of any economic sector. Recruitment firm ManpowerGroup's employment outlook survey for the first quarter of 2025 revealed that the Australian IT sector has a net employment outlook of +27%, leading all other sectors.
IT eclipses other industries
IT hiring prospects outperformed other Australian sectors including healthcare and life sciences (+21%), finance and real estate (17%) and transport, logistics and automotive (17%). The IT sector beat the national net employment outlook of +11% for the quarter.
The outlook score is calculated by subtracting the percentage of employers that expect to reduce staff from the percentage that expect to increase hiring. A positive number indicates that more employers plan to hire than cut jobs.
SEE: How to prepare for the future of IT jobs in Australia
However, the IT sector's net employment outlook has declined slightly: falling 1% from the fourth quarter of 2024 and 2% compared to last year.
A global phenomenon: IT leads hiring prospects
Globally, IT continues to dominate hiring trends. ManpowerGroup reported that the global IT net employment outlook in 42 countries stands at +37%, an increase of 2% from the previous year.
Australia's IT sector lags behind some Asia-Pacific peers, ranking 36th globally with an overall employment outlook of +11%. Within APAC, Australia ranked fifth, behind India (+40%), China (+29%), Singapore (25%) and Japan (15%).
The overall Asia-Pacific regional hiring outlook saw a stronger hiring outlook (+27%), although this represents a 3% decline compared to the same period last year.
Challenges persist despite positive outlook
Despite the promising figures, landing an IT role in Australia may not be easy. A tightening labor market means more competition for positions, with reports showing a growing number of job seekers relative to the number of positions advertised.
SEE: Why now could be a good time to upskill tech jobs
A survey by online employment website SEEK found that job applications per advertisement in the information and communications sector have more than doubled since 2022. This means there are still jobs for those seeking, but they are not as plentiful as before.
A Gartner HR survey published in December 2024 found that 39% of Australian job seekers reported difficulties finding work, while only 25% found sufficient jobs to suit their skills.
Opportunities with midsize employers
For IT professionals looking for opportunities, midsize companies may offer the best prospects. ManpowerGroup noted that employers with between 250 and 999 employees reported the highest hiring intentions, with a net employment outlook of +17% by 2025. In comparison, larger employers with between 1,000 and 4,999 employees reported a more modest employment outlook. +7%.
Wages expected to remain relatively stable in 2025
IT recruitment firms say Australian IT employees are expected to continue earning some of the highest salaries available in the country, although salary increases may remain modest.
According to recruiter Blue Wave Digital:
- Front-end software developers: between $100,000 and $140,000 for mid-level positions; $150,000+ for higher positions
- AI/ML Engineers: $130,000-$180,000 for mid-level experience; $200,000+ for higher positions.
- Data scientists: between $120,000 and $160,000 for mid-level positions; $170,000+ for higher positions.
- Cybersecurity analysts: between $100,000 and $140,000 for mid-level positions; $150,000+ for higher positions.
- Cloud engineers: Between $120,000 and $150,000 for mid-level positions.
Mercer's Australian Pay Outlook 2025 predicts that pay increases across the Australian economy (not specifically in IT) will remain at 4% in 2025.
