Australian tech wages rise as job growth & hours diverge

Australia's technology sector has seen a general increase in employment and wages, though the data reveal an uneven picture across the country, with major cities such as Brisbane, Adelaide, and Perth experiencing year-on-year hiring declines.

Mixed job growth

Nationally, technology jobs rose by 4.4% compared to the previous year, with New South Wales leading at 7.1% annual growth and Victoria following at 3.6%. In contrast, employment in Brisbane contracted by 6%, Adelaide by 3.6%, and Perth fell by 0.4% year-on-year. These differences indicate varying levels of demand for technology talent in key regions.

Engineering roles saw the most significant gains, with hires up 20.4% year-on-year. The construction and retail and hospitality sectors also reported increased hiring, reflecting diversified employment growth outside the technology space. Science and technology hiring fell in several major markets, mirroring broader challenges for the sector in specific regions.

Wage increases

Wages across the information and communications technology (ICT) sector reached AUD $88.10 per hour, showing a 4.8% rise from a year earlier. Science and technology roles noted a slightly higher increase of 5.2%, to AUD $60.80 per hour. Among the major cities, Perth recorded the fastest tech wage growth of 10.1% year-on-year.

Full-time technology workers commanded hourly rates of AUD $64.70 on average, markedly higher than their casual counterparts at AUD $39.10 per hour. Wage growth was led by consulting and strategy roles, which saw a 9.2% increase, and engineering roles, which rose by 7.5%. Workers aged 25 to 34 enjoyed notably strong wage growth, averaging a 6.7% increase year-on-year.

Working hours trends

The total number of hours worked across the economy increased only marginally, up 0.4% on the previous year. However, tech sector hours bucked the trend, dropping 0.8%, suggesting possible underutilisation of highly skilled professionals even as employment rises.

Casual hours recorded a sharp month-on-month decline of 8.3%, raising questions about the availability of contract and project-based work in the sector. Some of the most overworked positions were data engineers (163 hours per month), network engineers, and consultants (159 hours), highlighting sustained demand for these specialist skill sets despite reductions in total hours elsewhere.

Casual shifts

Casual employment in the technology sector saw a 9.5% annual increase, outpacing the 3.7% growth observed in full-time roles. This aligns with a broader shift towards more flexible employment arrangements, both in technology and across the broader labour market.

Business perspectives

Despite stronger overall job creation, a continued decline in hours worked underscores ongoing uncertainty about economic conditions. Some businesses remain cautious about expanding workloads, even as they add new staff.

"Jobs are returning with force after a slower few months," said Ben Thompson, Co-Founder and CEO, Employment Hero.

"Businesses are hiring again, but they're still cautious about how much work they're giving people. A spike in hires alongside a dip in hours suggests many Australians are patching together multiple jobs just to stay afloat. Plus, this dip in hours is across all employment types, including full-time, which is a red flag for output and job security. More people are working, but we're not necessarily getting more done," said Thompson.

"It's no surprise wages are still climbing... everything else is too. With inflation sitting at 3.2 per cent, employers are stretching to keep up. Most are trying to do right by their people, but it's getting harder to match the rising cost of living," said Thompson.