Australia's tech hiring market is projected to see a strong upward trend in 2025, according to Clicks IT Recruitment’s 28th annual IT Recruitment & Retention report. Despite the economic uncertainties that characterized 2024, the findings point to an optimistic outlook for tech and digital roles, with several sectors poised for growth while others may face challenges.

The report, based on data from over 200 Australian organizations, highlights that the IT staffing market is expected to stabilize in the coming year, with key areas of growth focused on tech transformation projects and bolstered cyber security initiatives. These sectors are anticipated to drive the demand for skilled professionals, particularly as businesses seek to enhance their digital infrastructure and better protect against increasing cyber threats.

The Project Services and Transformation sectors remain robust, showing no signs of slowing down. Organizations continue to focus on upgrading their tech and cyber security measures, which will necessitate a steady influx of talent. In particular, roles in Project and Change Management, as well as Analysts, are set to experience a surge in demand. These positions, however, may face hiring tensions due to the increasing competition for top-tier professionals.

Artificial Intelligence (AI) and Automation stand out as major drivers of job creation in 2025. According to the survey, AI adoption is expected to generate more job opportunities than it displaces, with 18% of respondents increasing their hiring budgets in response to AI tools, compared to only 3% reporting a reduction. As companies leverage AI for improved efficiency and innovation, the demand for AI and automation specialists is set to rise significantly.

While the market is set for growth, some areas may face a more tempered outlook. The report notes a decline in the rapid escalation of wage costs, with fewer organizations offering higher-than-expected salaries for tech and digital roles in 2024. This marks a decrease from the previous years, where more companies were willing to meet or exceed salary expectations. However, more than half of organizations still reported paying above-average salaries, although this was a significant drop from the 68% in 2023 and 92% in 2022.

Contracting rates have stabilized, with 39% of organizations reporting no changes in rates over the past year. This is the highest level of stability in contracting rates since 2020. Additionally, the use of IT contractors has leveled off after a three-year decline, and organizations have increasingly turned to onsite IT consulting services, with 2024 marking a record high in this area. This shift indicates a greater emphasis on flexible, project-based engagements rather than long-term, permanent positions.

The ability of organizations to attract and retain top tech talent will be contingent on their Employment Value Proposition (EVP). Candidates are increasingly prioritizing stability, meaningful work, and flexibility in their job searches, especially in the context of steady contracting rates and slow growth in permanent wage offers. Companies that can offer attractive non-monetary benefits and a strong EVP will be better positioned to secure the best candidates.

Tamara Ryf, CEO of Clicks IT Recruitment, commented on the findings: “With growth expected in cyber security and AI, the hiring outlook for IT professionals in 2025 is promising. Organizations are focusing on maximizing their data and analytics capabilities to stay ahead of digital trends. While the market remains competitive, companies must establish a compelling EVP to attract top talent, as salary expectations and benefits are becoming more varied.”