Australia's technology sector has seen significant growth, with the workforce now surpassing one million people in 2024, a 60% increase over the last decade. However, despite this expansion, the country faces a critical shortage of tech professionals needed to meet future industry demand. 

According to the Australian Computer Society's (ACS) latest Digital Pulse report, an estimated 1.3 million additional tech workers will be required by 2030 to sustain the sector's continued growth.

Launched by Deputy Prime Minister Richard Marles, the Digital Pulse 2024 report highlights the workforce challenges in the technology sector. “Like many other sectors right now, IT and tech need an uplift in the workforce to support the demands required of it,” said Marles during the report’s release.

Key findings from the report emphasise that, while there are currently 1.1 million workers in Australia with skills similar to those required for tech roles, the country is still experiencing a shortage of talent with specialised expertise. This gap is particularly concerning in areas like cybersecurity, where demand is expected to double by 2030, and artificial intelligence (AI), where Australia is falling behind international competitors in adoption.

ACS Chief Executive Officer Josh Griggs stressed the urgency of addressing this talent gap: “Australia has long dealt with a chronic shortage of tech skills. As we navigate rapid advancements in cybersecurity and the integration of AI into the workplace, ensuring that the workforce has the skills to support industry and community needs is more crucial than ever.”

Griggs also pointed out that technology has become integral to nearly every part of society, and for Australia to remain competitive on a global scale, it must invest in training the talent needed to leverage these emerging technologies.

Although there was a surge in IT student enrolments during the COVID-19 pandemic, the report revealed a 10% decline in 2022. This decline in interest in technology studies poses a significant challenge to filling future job openings. The data also indicates a gender imbalance, with boys being four times more likely than girls to show interest in pursuing tech careers. This highlights the ongoing need to promote diversity and inclusion within the sector.

Griggs explained the importance of addressing these education gaps: “While 70% of parents would encourage their children to pursue a tech career, only half of those outside the tech industry or professional services would actively recommend it. This shows a clear gap in perception, which needs to be addressed if we are to build a stronger, more diverse workforce.”

The Digital Pulse report offers 12 key recommendations to tackle the workforce shortages, including reskilling workers, fostering diversity, and engaging younger generations in technology careers. One of the standout recommendations is the proposal of an "earn while you learn" wage subsidy for those pursuing tech careers, which would offer financial incentives to attract new talent. Additionally, a targeted campaign aimed at educating parents about the wide range of opportunities in the tech sector could help reshape perceptions and encourage more young people to consider technology as a viable career option.

John O'Mahony, a Deloitte Partner and author of the report, stressed the importance of reskilling and upskilling mid-career workers: “Over the past decade, we’ve seen that mid-career transitions have been one of the largest sources of new tech talent. This year, the report identifies 1.1 million workers with adjacent skills, and the challenge ahead will be encouraging more of them to move into tech roles.”

ACS President Helen McHugh reflected on the significance of the milestone reached in the Digital Pulse report but also issued a warning about the future. “The tenth edition of the Digital Pulse is a testament to how far we’ve come, but it’s also a wake-up call to address the challenges that remain,” McHugh said. She stressed that the report is not just a look back at past achievements, but a roadmap for the future, urging the industry to act swiftly to maintain Australia’s position in the global digital economy.

McHugh concluded, “For Australia to remain competitive, we need to ensure our workforce is prepared to handle the rapid advancements in AI, cybersecurity, and other emerging technologies.”

As the industry continues to grow, meeting the demand for tech talent will be essential to ensuring that Australia can remain competitive on the global stage. With the right strategies, the country can overcome its talent shortfalls and build a robust workforce ready for the challenges ahead.