Computing degrees remain relevant, although they are evolving.
The question of whether an IT degree is still a worthwhile investment is increasingly complex. Rising automation, declining full-time job rates for recent graduates and the tech sector’s growing acceptance of alternative hiring methods are changing expectations. Still, tech salaries remain among the highest in Australia and demand continues to rise fast, although it is uncertain how long this will persist.
Over the past decade, computer science salaries have increased by 25% since 2016. This is on par with mechanical engineering, banking and finance and law, although slightly below inflation. Government figures show that roles in computer system design average $197,000 annually, with the lowest-paid quartile still earning more than $87,000. These figures highlight a lucrative sector, though not one without its challenges.
Despite strong pay, fewer graduates are securing full-time jobs in the field. In 2023, just under 68% of computing graduates found full-time employment in related roles. That figure is lower than previous years, and even lower than levels seen during the pandemic downturn. Experts note that a lack of alignment between university education and workplace needs, which one national body described as a “suitability gap,” is contributing to weaker outcomes.
At the same time, Australia's shortage of tech skills is getting worse. In 2023, the country reached 1 million tech workers, a number forecast to grow to at least 1.3 million by 2030. Cybersecurity is expanding rapidly, with projected demand rising from 18,000 new professionals in 2020 to 85,000 by the decade's end. However, pressure from automation is increasing too.
AI is already changing the landscape. Major firms are cutting developer roles and shifting investment to AI-focused teams. Internationally, job losses at Microsoft, Meta, Google and other companies point to the beginning of a significant transformation. US researchers report a 16% decline in entry-level roles across fields most exposed to AI, including software development. Australia appears partly insulated for now, with only 4% of roles considered highly automatable, though future impacts remain uncertain.
In response, the tech industry is adjusting how it develops talent. Leading employers in Australia plan to hire more people from non-university pathways, aiming for 20% of all new employees to come through alternative training programs by 2030. Some employers have already exceeded this target, and nearly 40% of entry-level hires at one global consultancy came through non-traditional routes.
Even so, traditional degrees are not being abandoned. Technology executives say that hiring from broader pathways increases options rather than replacing universities outright. This change does not signal a rejection of higher education. Instead, it reflects that job-readiness is becoming more valuable than academic credentials alone in the digital economy.
