Australian tech hiring priorities shift to AI, data & cyber

New research indicates that Australian employers are prioritising hires in software engineering, cybersecurity, data privacy, and artificial intelligence as they navigate a changing technology employment landscape for the remainder of 2025.

Specialised recruiter Robert Half commissioned an independent survey which found that positions requiring advanced skills in software engineering and development, cybersecurity, data privacy, artificial intelligence, machine learning, and automation are at the forefront of strategic priorities within technology departments.

According to the findings, employers are showing the strongest intention to hire permanent employees for roles in artificial intelligence, machine learning, automation initiatives, cybersecurity, data privacy, and software engineering and development. For contract positions, the highest demand areas include cloud projects and initiatives, software engineering and development, and data engineering and business intelligence (BI) insights.

The report also highlights the dual employment strategies undertaken by companies. The ongoing transformation of businesses, combined with the complexity of economic conditions, is resulting in organisations balancing both permanent and contract staffing to address immediate skills shortages whilst maintaining flexibility for project-based work.

Tom Ward, Director at Robert Half, addressed the recent dynamics in technology recruitment.

"The prevailing story of today's job market is one of economic caution, leading to what we call the 'Big Slow' in hiring. While the need for skilled talent continues to shape strategic priorities, companies are now taking a more tentative approach, with hiring decisions often taking longer and requiring full budget sign-off or board approval. In relation to AI, there is still a lack of clarity around what AI hiring involves, making it more challenging to justify in a cost-conscious climate,"

he said.

Despite the increase in hiring intentions, employers continue to grapple with labour market constraints. The Australian recruitment environment is currently characterised by historically low unemployment rates alongside a reduction in new job advertisements, placing further emphasis on cost management and prudent hiring decisions.

Within the technology sector, software engineering and development is cited as the highest priority for 2025, followed by cybersecurity, data privacy, and artificial intelligence applications. Recent public security incidents have heightened the strategic focus on cybersecurity and data privacy, while sustained digital transformation drives continued demand for software engineering expertise. The top five fields in which employers plan to hire, both on a permanent and contract basis, are software engineering and development, cybersecurity and data privacy, artificial intelligence/machine learning, technology modernisation, and cloud projects and initiatives.

Ward said,

"Technology skills are integral to virtually every strategic priority for Australian businesses in 2025. Organisations are seeking to build resilient, innovative and data-driven foundations that will form the bedrock for competitive advantage and future company growth."

Employers are differentiating hiring approaches depending on their needs. The demand for permanent hires remains highest in AI, cybersecurity, and software engineering, whereas contract workers are increasingly employed for cloud and data projects, as well as CRM/ERP deployments. The survey detailed employers' intended recruitment focus across both forms of employment, listing AI, machine learning, automation, cybersecurity, data privacy, and software engineering as leading areas for permanent staff, while cloud, software engineering, data engineering, BI insights, and AI governance featured prominently among contract-based hires.

According to Ward,

"Companies' permanent recruitment strategy centres on laying the foundational skillsets needed to support long-term growth and resilience. The strong interest in AI governance, along with the other priorities indicates a long-term commitment to innovation, protection, and ethical deployment."

Ward further commented,

"For initiatives requiring specialised skills, rapid deployment or project-based expertise, contract professionals offer invaluable agility, allowing organisations to quickly scale up and down to access cutting-edge skills without immediate long-term commitments. They can also accelerate critical tech transformations, such as CRM/ERP implementations, without disrupting their permanent core teams."

Regardless of the type of employment, the majority of technology employers report significant obstacles in attracting and retaining talent to meet their business objectives. Among the largest challenges identified, high salary expectations (40 percent) and a scarcity of qualified candidates with relevant industry experience (34 percent) were noted as predominant barriers. Additionally, competition from other companies, insufficient soft and technical skills among candidates, and difficulties assessing true capabilities during interviews were listed as persistent concerns by hiring managers.

Ward concluded,

"The surge in technology hiring intentions reveals a pent-up demand within businesses that are navigating increasing complexity. Turning these intentions into reality comes with challenges; companies must contend with the barrier of finding highly specific skills and securing the necessary financial commitment, even in a market with many jobseekers."

The research, conducted online in mid-2025, surveyed 500 hiring managers across technology, finance, and human resources sectors. Respondents represented a cross-section of small to medium-sized enterprises (SMEs), as well as large private, publicly-listed, and public sector organisations in Australia.