Australia’s Tech Workforce Contracts for First Time as Visa Priorities Shift

For the first time on record, Australia’s technology workforce has experienced a decline, signaling a potential turning point for the nation’s digital economy. According to the 12th annual Australia’s Digital Pulse report, the number of technology workers fell by 0.3 per cent in 2025, dropping to approximately 967,000. This contraction follows last year’s data, which had celebrated the industry reaching the significant milestone of over one million employees.

The report, commissioned by the Australian Computer Society (ACS) and prepared by Deloitte Access Economics, draws on Australian Bureau of Statistics data to provide a comprehensive look at the sector’s health.

The Role of Migration

The findings underscore the heavy reliance Australia has placed on global talent. Over the past five years, permanent and temporary migrants have filled roughly 20 per cent of new technology roles. Betsy Gregg, ACS Director of Operations, noted that overseas-born professionals currently constitute 45 per cent of the national tech workforce.

“What is clear is that migration will continue to be an important complement to domestic education and training pathways,” the report stated. Gregg emphasized that while migration is essential for addressing immediate skills shortages, a “broader approach” is required to secure the nation’s future, including a more robust investment in the domestic talent pipeline.

Shifting Visa Priorities

The downturn in the workforce coincides with a notable change in how the Department of Home Affairs manages skilled migration. Under the new Ministerial Direction 119, which took effect in July 2026, IT occupations have been sidelined in favor of sectors deemed more critical to national interest.

Current government policy now prioritizes visa applications based on specific occupations and the applicant’s location:

• Highest Priority: Roles supporting Australia’s law enforcement and defence interests.
• Secondary Priority: Essential sectors including construction, healthcare, and teaching, particularly for applicants already onshore in Australia.

The department noted that applicants currently in Australia are granted higher processing priority than those residing offshore. This adjustment in policy creates a challenging environment for the tech sector, which has traditionally relied on overseas recruitment to fuel its growth. India, China, and Nepal have remained the top sources for skilled IT workers since 2023-24, and any reduction in visa prioritization for these roles could have long-term implications for the industry.

As the sector navigates this shift, the ACS report serves as a stark reminder that maintaining a thriving digital economy requires a delicate balance between attracting international experts and nurturing local capabilities.

For more on this topic, listen to the full analysis regarding Australia’s skilled tech workforce and visa priorities on the SBS Hindi Podcast Collection.