Australia’s technology workforce may be a force multiplier for the economy, but the sector’s 2025 contribution of $476 billion to the national economy could be at risk.
According to the Australian Computer Society’s (ACS) Digital Pulse 2026 report, compiled by Deloitte Access Economics, the country’s tech workforce shrank by 0.3 per cent, the first decrease in numbers in the 12 years the ACS has been tracking the sector.
This equates to a workforce of 967,000 workers in 2025, with the ACS report noting the sector will need another 259,000 technology professionals by 2035. This equates to double the growth of the wider workforce to keep up with the pace of AI adoption and maintain Australia’s competitive edge.
The report was launched by Deputy Prime Minister and Minister for Defence Richard Marles, who emphasised the importance of staying abreast of technological change.
“As AI continues to reshape the way Australians work, our task is not to fear that change, but to ensure people have the education, training and recognised professional skills to succeed, while building sovereign capability in those critical technologies where Australia can make the greatest contribution, working alongside trusted international partners,” Marles said in a statement.
“This report is a timely contribution to the choices governments, industry, and educators must make now to ensure Australia has the people, expertise and capability to shape the next wave of technological change with confidence.”
Looking deeper into the numbers, trade and administrative roles led the decline, while professional and management roles grew. The way in which people enter the workforce is also changing, with 40 per cent gaining their positions via alternate paths, such as workplace training and self-directed learning.
To maintain Australia’s technology edge, the ACS has published eight policy recommendations in three key areas:
Developing the AI ecosystem
1. Boost SME AI investment with a one-year $1 billion package, including a 50 per cent tax deduction on AI training, strategy, and technology spending.
2. Build sovereign AI capability through a review of IT risks, a core technology fund, and more coordinated data centre planning and approvals.
Building a professional and skilled workforce
3. Professionalise the tech workforce by adopting consistent capability standards such as SFIA (Skills Framework for the Information Age) across government and industry recruitment and procurement.
4. Expand alternative pathways by targeting 20 per cent of entry-level tech hires through non-traditional routes by 2030, supported by digital cadetships and employer-funded training.
5. Address digital skills gaps by refining migration pathways and occupation lists to attract high-value tech skills that complement domestic training.
Developing the longer-term pipeline
6. Retain women in tech by addressing structural barriers through flexible workplaces, return-to-work pathways, and mid-career gender targets.
7. Strengthen digital education through a digital educator fund, Year 12 tech participation targets, and STEM labs in schools.
8. Use gaming to drive STEM participation by supporting game design and development as an accessible way to teach digital technologies.
“Technology alone won’t deliver Australia’s AI agenda. Every outcome depends on capable, trusted professionals,” ACS chief executive Dr Prins Ralston said.
“These findings warn that our skills gap will widen without immediate action. In the age of AI, clarity about human capability is just as critical as standards and regulation. We must take action now to ensure technology professionals are equipped with the skills required to enter and support the workforce.
“Anybody can put an AI model into a hospital. We have spent a year deciding how Australia will govern AI. We still have not decided who is qualified to do it.”
You can read the full report here.
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