Projected growth for Australian tech hiring in 2025

IT Recruitment specialist Clicks IT Recruitment has projected a strong hiring market for tech and digital roles in Australia for the year 2025, according to its 28th annual IT Recruitment & Retention report.

The report, which collected data from over 200 Australian organisations, indicates that despite the economic challenges faced by businesses in 2024, there is an expectation of increased stability in the IT staffing market moving forward. Key areas for growth include tech transformation projects and enhanced cyber security measures.

The report highlights that Project Services and Transformation sectors are continuing to expand, showing little sign of slowing down. This growth is closely linked to an ongoing demand for enhancements in cyber security and digital infrastructure, which are anticipated to drive staffing increases throughout 2025.

The survey results show that Project / Change Managers and Analyst roles are set to experience increased hiring demand in the coming year, with these positions facing potential hiring tension.

Artificial Intelligence (AI) and Automation have been identified as significant growth areas, with more jobs expected to be created than replaced within 2025. Notably, 18% of survey respondents cited the adoption of AI tools as a key factor for increasing hiring budgets, compared with only 3% who reported a decrease as a result of AI implementations.

While the report also notes a decline in elevating wage costs, over half of surveyed organisations still reported paying higher than anticipated salaries for Tech & Digital staff in 2024. This was a decrease from 68% in 2023 and a notable drop from 92% in 2022.

Contracting rates have stabilised, with 39% of organisations reporting no change over the past year, which is the highest stability metric since 2020. Similarly, the engagement of IT contractors has levelled after experiencing a three-year decline, and there has been a record increase in the use of onsite IT consulting services as of 2024.

The capacity for organisations to attract top talent will rely heavily on their ability to establish strong Employment Value Propositions (EVP), as candidates seek stability, meaningful work, and flexibility. This is particularly relevant amid steady contracting rates and historically low growth in permanent wages.

Tamara Ryf, Chief Executive Officer of Clicks IT Recruitment, commented on the findings: "Clicks is committed to using data-driven insights to assist organisations to build robust and proficient Tech & Digital teams during this dynamic period of digital expansion and transformation. With the growth of key sectors including cyber security and AI, we are optimistic about the hiring market for IT professionals in 2025. There are promising indicators of stability and growth for IT professionals. Companies want to maximise their data and analytics capability to remain at the forefront of digital advancements, and future-proof their business. While the market is still competitive for jobseekers, companies should always establish a strong EVP to attract top talent while salaries and non-monetary benefits are so varied."