2025 is poised to witness a flourishing job market scenario in Australia’s IT industry, showcasing the most optimistic employment forecast among all economic sectors. The latest Employment Outlook Survey for Q1 2025 by recruitment agency ManpowerGroup has disclosed that the Australian IT sector boasts a net employment outlook of +27%, surpassing all other sectors.
IT excels over other industries
The employment outlook in the field of IT has outperformed various other sectors in Australia, including health care and life sciences (+21%), financials and real estate (17%), as well as transport, logistics, and automotive (17%). The IT sector has surpassed the national net employment outlook of +11% for the quarter.
The computation of the outlook score involves subtracting the percentage of employers anticipating staff reductions from those expecting to augment hiring. A positive value indicates that more employers intend to recruit rather than downsize their workforce.
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Nevertheless, the net employment outlook for the IT sector has experienced a minor dip — falling by 1% since Q4 2024 and 2% in comparison to the previous year.
A global phenomenon: IT leads in employment outlook
On a global scale, information technology continues to command hiring trends. ManpowerGroup has reported that the worldwide net employment outlook for IT across 42 nations stands at +37%, marking a 2% surge from the preceding year.
Within the Asia-Pacific region, Australia’s IT sector lags behind some of its counterparts, ranking 36th globally with an overall employment outlook of +11%. In the Asia-Pacific area, Australia claims the fifth spot, trailing behind India (+40%), China (+29%), Singapore (25%), and Japan (15%).
The regional employment outlook for Asia-Pacific has recorded a stronger hiring prediction (+27%), despite a 3% decline in comparison to the equivalent period last year.
Challenges persist despite upbeat outlook
Despite the optimism surrounding the numbers, landing an IT position in Australia may not be a simple endeavor. With a diminishing labor pool, there is heightened competition for roles, as reports indicate an escalating count of job seekers in contrast to the available job listings.
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An investigation conducted by the online job platform SEEK unveiled that the number of job applications per advertisement within the information and communications sector has more than doubled since 2022. While there are still open positions for individuals on the lookout, they are not as abundant as they were in the past.
A study from Gartner released in December 2024 highlighted that 39% of Australian job seekers encountered challenges in securing new roles, with only 25% believing that there were ample opportunities matching their skill set.
Exploring Options with Mid-Sized Employers
For IT professionals exploring opportunities, mid-sized enterprises may present the most promising outlook. According to ManpowerGroup, employers with 250-999 workers displayed the highest intentions for recruitment, with a net employment outlook of +17% for 2025. In contrast, larger firms with 1000-4,999 employees showcased a more subdued outlook of +7%.
Salaries are projected to remain fairly stable in 2025
IT recruitment agencies predict that Australian IT professionals are likely to continue earning some of the most competitive salaries nationwide, although salary raises may stay moderate.
As per the insights from recruiter Blue Wave Digital:
- Front-end software developers: $100,000-$140,000 for mid-level positions; $150,000+ for senior roles
- AI/ML engineers: $130,000-$180,000 for mid-level experience; $200,000+ for senior roles.
- Data scientists: $120,000-$160,000 for mid-level roles; $170,000+ for senior positions.
- Cybersecurity analysts: $100,000-$140,000 for mid-level positions; $150,000+ for senior roles.
- Cloud engineers: $120,000-$150,000 for mid-level positions.
Mercer’s Australian Salary Outlook for 2025 anticipates that salary increments across the Australian economy — not specifically in IT — will linger at 4% in 2025.
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