Victoria’s tech sector delivers $36 billion boost & jobs surge
Victoria's technology sector has contributed $36 billion in value to the state's economy over the past year, employing more than 300,400 workers as outlined in the 2025 ACS Australia's Digital Pulse report.
The report projects that Victoria's technology workforce will grow by over 405,000 people by 2035, taking the total number of tech professionals in the state to upwards of 700,000. This positions Victoria as a competitive hub within Australia, with established strengths noted in fields such as cybersecurity, health and medical research, advanced manufacturing, and renewable energy.
Upskilling demand
The research shows that Victorians are engaged in ongoing efforts to build digital skills. Among technology workers, 94% are actively enhancing or keeping their abilities current, while 67% of the broader workforce are also focused on upskilling. AI and machine learning, cybersecurity, and data analytics are identified as the areas with greatest demand for skill development, while notable gaps persist in AI, robotic process automation, and virtual and augmented reality.
Despite the enthusiasm for training, several challenges impact workers' ability to further their skills. Time pressures related to work were cited as a significant barrier by 43% of respondents, followed by the high cost of training at 36% and personal commitments at 31%.
"Victoria's technology workforce continues to thrive, delivering not only economic growth but also global leadership in emerging industries. The combination of a highly skilled workforce, government investment and strong industry–research collaboration puts Victoria in a powerful position to drive innovation and compete internationally.
"However, with AI making a profound impact on the way we work, we must also recognise that few careers will follow a straight line. To navigate that future, we need robust training and reskilling options that make mid-career transitions not only possible but practical. ACS will be part of that shift - supporting professionals at every stage of their journey so they can adapt, grow, and continue contributing to Australia's digital economy," said Ms Brtan.
Skills shortages
At the national level, the Digital Pulse 2025 report indicates the sector is now contributing $134 billion to the Australian economy, with more than 1 million Australians employed in technology roles. However, there are ongoing warnings about significant skills gaps, especially in AI, cybersecurity, and data analytics, which are seen as barriers to business productivity and growth.
The report calculates that closing this digital skills gap could unlock a further $25 billion for the national economy by 2035. Nonetheless, some 150,000 businesses are currently reported to face considerable or severe shortages in digital capability, resulting in issues including lost revenue and increased cyber risk.
A survey involving 300 C-suite executives and 1,200 workers found that 51% lack at least one digital skill required for their role, with AI, cybersecurity, and data analytics marked as common gaps. University IT completions have increased by 11%, yet half of recent graduates believe their qualifications are not relevant for their present roles. While industry certifications and vocational education pathways are trusted, 88% of technology job advertisements still stipulate a university degree as a requirement.
Additionally, 45% of C-suite leaders were found to report only basic digital capability in at least one of the five core digital areas, such as knowledge of digital transformation business cases or understanding of how data is utilised. Research by the OECD, referenced in the report, suggests businesses that reduce such gaps could achieve up to 30% more effective technology use. Strengthening cyber capability is also highlighted as a chance to reduce the $63 billion annual cost of cyberattacks.
"Digital skills are the foundation of Australia's economic future," said ACS Chief Executive Officer Josh Griggs.
"To compete globally, we need to ensure every worker, from frontline staff to the executive suite, has the capabilities to work with and lead digital transformation. If we close these gaps, Australia stands to unlock billions in economic growth, improve cyber resilience, and position itself as a global tech leader. "Our plan is not just about fixing today's problems; it is about creating a future-ready nation," Mr Griggs said.
Ten recommended actions
To address skills shortages and foster innovation, the ACS has suggested ten actions, which include developing a national sovereign AI strategy, boosting entrepreneurship through innovation policy, providing government co-investment in scaleups, and encouraging research and development in AI and technology adoption. Other recommendations are for executive digital skills assessments, the expansion of entry-level cybersecurity roles, a fast-tracked national framework for technology skills, a commitment to recognise alternative tech pathways alongside university degrees, implementation of an 'earn while you learn' scheme to support mid-career workers, and funding of sovereign government AI capability.
The ACS Digital Pulse report is intended as a resource for policymakers, businesses, and educational institutions in shaping the direction of Australia's future digital economy.
