Tech sector struggling to meet goal of creating 1.2 million jobs by 2030

The once-booming tech sector lost more than 30,000 positions in the 2025 financial year, the first contraction since 2020, with job numbers falling to 949,172, according to the Department of Industry, Science and Resources (DISR) annual report.

The department issued a blunt “not met” rating against the national jobs target, warning the downturn may mark the start of a sustained slide.

The report attributes the fall mainly to a 3.9 per cent drop in technology roles across non-tech industries, offsetting modest growth elsewhere in the labour market.

But even dedicated tech employers took a hit. There was a 3.6 per cent fall in technology jobs within the tech sector itself, alongside a 3.2 per cent decline in non-technology roles at tech companies.

The contraction threatens to undermine the Prime Minister’s “Future Made in Australia” agenda, which is predicated on an expanding technology workforce for economic resilience and industrial growth.

“A decline across successive quarters throughout the year indicates a potential ongoing trend,” the DISR report said, noting that the trajectory of jobs growth is not on track to reach the 1.2 million target by 2030.

The failure to meet the target signals a potential skills pipeline crisis and raises serious concerns about Australia’s long-term economic competitiveness, as other nations rapidly invest in AI, quantum computing, and advanced manufacturing.

Although the report claims the department “overall achieved its purpose”, the missed job target is a vulnerability that suggests Australia may be falling behind in the global tech race.

DISR secretary Meghan Quinn stated the department “has a central role” in the Future Made in Australia agenda, with programs “aligned to support domestic industries to deliver economic resilience and security” and maximise comparative advantages in the net-zero transition.

But the department’s formal “not met” self-assessment for maintaining the trajectory to 1.2 million tech jobs by 2030 suggests this extensive investment has not yet delivered the necessary jobs growth.

The setback comes despite billions of dollars in federal support designed to nurture a high-tech industrial base. The Research and Development Tax Incentive backed nearly 14,000 businesses in 2024-25, generating $17.7bn in R&D activity. Flagship programs – the $2bn Green Aluminium Production Credit and $1bn Green Iron Investment Fund – were also launched to anchor new industries.

A spokesman for Industry Minister Tim Ayres defended the government, stating the focus is on a commitment to skills for “the jobs we need”. He cited over 65,000 enrolments in tech and digital courses through the Free TAFE program since January 2023, plus partnerships via the Building Women’s Careers program.

But Opposition industry and innovation spokesman Alex Hawke called the decline a “broken promise on election commitment”.

Mr Hawke criticised the government’s performance, claiming tech jobs were “skyrocketing” under the Coalition but under Labor, “we won’t even crack one million by 2030”.

He accused Mr Ayres of failing to address the crisis and stated: “Labor talk a big game but don’t do the hard work to actually deliver.”

The Tech Council of Australia, chaired by Atlassian co-founder Scott Farquhar, has expressed optimism the target will be met. Atlassian is the anchor tenant of Tech Central, a $1.4bn development beside Sydney’s Central Station that is set to be completed in 2027 and act as an incubator for tech talent.

The jobs crisis comes amid mass global redundancies, including Amazon’s cut of 14,000 corporate jobs last month. US companies announced plans to cut 150,000 jobs in October – a near tripling from September – with the rise of artificial intelligence cited as a major driver globally.

Atlassian in September cut 200 customer service jobs in Europe, just months after chief executive and co-founder Mike Cannon-Brookes took to video conference to sack 150 people whose roles could be replaced by artificial intelligence, including 44 in Australia.

Investors globally are re-evaluating tech stocks given the hefty amounts invested in AI. The tech-heavy Nasdaq Composite Index, long buoyed by excitement over AI, last week had its worst week since April, with $US1bn ($1.5bn) wiped off its value.

This article first appeared in The Australian as Tech sector struggling to meet goal of creating 1.2 million jobs by 2030