Australia, and much of the world, is currently experiencing a challenging economic climate. Both businesses and job seekers are encountering new obstacles. When specifically looking at Australia’s Technology sector, we asked John Ridge - Executive Director at the ACS Foundation - to share his perspective on the state of Australia’s IT job market.
The Current Climate
After strong growth during the work-from-home era, Australia’s technology sector has seen a pullback in the number of digital transformation projects commencing. This means employment in the sector is more challenging compared to two years ago. With new challenges arising almost daily, compounded by general economic uncertainty, it can feel like lean times for many ICT organizations. This restrictive budget environment inevitably impacts the size of the approved talent pipeline.
The Impact on Graduates and Students
One often ignored issue is the need for the industry to provide a long-term career message for students considering entering the IT profession. The current cyclical low won’t last forever, so it is important to encourage more students into the industry. Technology graduates and students require greater stability and certainty in the job market, and that message does not always get through to companies struggling with quarterly results or setting their annual budgets with limited resources. Our IT career messaging needs to be focused on the 5-10 year horizon, not just the end of this financial year.
The Shift in Hiring Trends
To mitigate the current restrictive IT environment, the ACS Foundation is noticing a workforce shift by companies. Many are increasing their reliance on short-term contract hires to bridge gaps where they would have previously hired permanent staff. However, this approach isn’t sustainable. When these contractors leave, they take with them most of the knowledge about the tools they’ve developed, leading to ‘technical debt.’
Despite these hurdles, top talent continues to secure positions. Companies used to be almost desperate to hire at any cost, but now they are becoming much more selective and are reducing pay for these resources. It is important for companies to develop strategies that help them identify and retain top talent.
Looking Ahead
As a 50-year IT industry veteran, I maintain a positive outlook. The Australian IT sector regularly goes through up and down cycles. This downturn will end, and forward-looking companies will be planning now for how they can take advantage when the next cycle swings upward. Already, some of the ACS Foundation partners are extending contracts for current graduates and converting them to permanent roles when their budgets allow. For example, 10 months ago, one of our partners planned to hire around 50 graduates. However, they suddenly paused their hiring after selecting about 5 candidates. Fortunately, they have started to offer new roles again. This is a sign that there are still IT career opportunities, and the number of these roles will only increase as we progress through the economic cycle.
Since 2001, the ACS Foundation has assisted over 8,500 IT students land their first internship or graduate role. www.acsfoundation.com.au Contact the ACS Foundation to secure the best emerging IT talent and ride the upswing of the new economic cycle.
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