The nation's ambition to build a tech-driven economy is facing major setbacks, with a significant contraction in the technology workforce. This reversal poses a challenge to the Albanese government's plan, which aims to expand the sector to 1.2 million roles by the end of the decade. Despite the injection of billions in public funding, the decline raises concerns about the outlook for innovation, skills development and economic competitiveness.
For the first time in nearly four years, the growth trajectory of tech jobs has shifted. According to data from the Department of Industry, Science and Resources, more than 30,000 positions were lost during the 2025 financial year, bringing the total workforce to just under 950,000. The department attributes the 3.9% fall in tech-related roles primarily to a reduction in jobs across non-tech industries. Core tech companies were also affected, reporting a 3.6% decline in tech jobs and a 3.2% drop in other roles.
These declines do not just represent a statistical change, they directly undermine the government’s “Future Made in Australia” strategy, which depends on a strong tech workforce to support sustainability and industrial resilience. The department’s review indicated that the pace of tech job expansion has "not been met", suggesting that the nation might be drifting off course from achieving its 2030 target. Programs like tax credits and investments in green sectors remain in place, though the expected employment gains have yet to materialise.
The downturn is occurring in the context of global instability in the tech sector. Widespread job cuts by international companies, growing automation and the rapid uptake of artificial intelligence continue to reshape employment patterns. Although government-backed schemes such as Free TAFE and initiatives supporting women in tech have seen increased participation, it is uncertain whether they can offset broader disruptions or deliver long-term labour force growth.
There is still cautious optimism surrounding major initiatives like Tech Central in Sydney, a $1.4 billion industrial hub projected to drive innovation and create jobs. However, it may be too late for such projects to counteract existing employment losses. As international competitors accelerate their investments in emerging technologies, Australia faces an urgent challenge to transform its tech ambitions into lasting and meaningful job creation.
