Market Overview

What’s the latest in Melbourne’s hiring market? Compared to 12-24 months ago, hiring in the corporate sector has slowed down, seeing a downward pressure on rates for contingent IT workers due to the spiraling cost of doing business. Resultantly, there have been many employers considering offshoring technical roles and restructuring as they review their strategic plans and determine priorities for 2024. Inflation will also play a part with increasing negative growth impacts on some industry sectors like retail.

The contracting market is steady however we are seeing the perm market become very quiet. We are seeing employers trying to combine a few roles under one position description; thus, candidates need to be able to wear many hats.

Many businesses are revising and reviewing their salaries and requesting industry benchmarks. This is to revise candidates who were hired at the top end of the salary spectrum during COVID, with businesses looking to reduce costs and market test. We are also seeing them reviewing and improving their internal systems. Industries that are adopting AI, machine learning and automation faster will do so based on a stronger/faster ROI. Banking, finance, supply chain and logistics have huge homogenous datasets and high-volume repetitive tasks that lend themselves more readily to machine learning and automation, while healthcare and customer service offer a better fit for customised AI experiences. The defence sector will continue to develop advanced AI, automation and machine learning capabilities, although this will remain top secret. City councils are going through digital transformation to use customer names instead of street addresses as the model to engage with rate payers, to enable one-view of people who own investment properties. Industry adoption of AI, machine learning and automation will continue expand, but will only represent a small proportion of most companies’ IT budgets as they prioritise more urgent infrastructure, transformation and cybersecurity projects.

The flex debate is firing up again as more and more businesses are requiring their team members to be in the office at least 3 days a week. With more candidates coming into the market, this makes it harder for them to negotiate.

Simon Yeung

Simon Yeung

Talent Melbourne Managing Director

Candidate needs

  • Flexibility or hybrid working options
  • Clear boundaries between work and life and prioritising mental wellbeing
  • Stable, long term, large project/BAU work will often be preferred
  • Professional development opportunities

Business needs

  • Employees and contractors willing to work onsite for a minimum of 3 days per week.
  • With the persistent threat of cyberattacks, businesses will invest heavily in robust cybersecurity measures to safeguard their data, systems, and customer information.
  • Businesses will invest in AI-powered analytics, automation,personalised customer experiences, and predictive maintenance to gain competitive advantages.
  • There will be a growing emphasis on sustainability, leading to investments in eco-friendly IT solutions, renewable energy technologies, and initiatives aimed at reducing the carbon footprint of digital infrastructure.

The year ahead

In the evolving landscape of Victoria's IT job market in 2024, several key trends and priorities are set to shape the tech and digital industry. A significant emphasis will be placed on bolstering network security, cyber resilience, and the safeguarding of cloud-based systems and data. Concurrently, local governments are actively pursuing the completion of digital transformation initiatives to accommodate the burgeoning population growth in the region. Environmental companies and government departments are earmarking increased budgets, reflecting a growing commitment to address pressing environmental concerns. Employers, grappling with the need to curtail contractor expenditures and adhere to budget constraints, will encounter challenges in securing the necessary talent and expertise. As a response, some employers are transitioning contractors into permanent roles, although this may introduce retention issues as candidate rates fluctuate. The financial services sector is gearing up for heightened scrutiny of risk and security within business processes and systems.

Looking ahead, the IT job market is anticipated to experience growth, fueled by the adoption of advanced technologies like AI, cybersecurity, and blockchain by Australian tech firms. The demand for skilled professionals in cloud computing, data science, and software development is poised to rise as businesses prioritise digital transformation. The persistent trend of remote and hybrid work setups is expected to expand opportunities, attracting talent from diverse geographical locations. This shift underscores investments in remote collaboration tools, cybersecurity for remote environments, and technologies supporting a seamless remote work experience. Victoria's commitment to fostering innovation and tech education is expected to cultivate a vibrant ecosystem, enticing both startups and established firms. The focus on sustainability and automation will drive a surge in roles related to green tech and robotics. Additionally, increased collaboration between academia and industry will enhance Victoria's reputation as a thriving hub for cutting-edge IT careers.

Meanwhile, government businesses are intensifying efforts in the circular economy and monetising non-regulated aspects of their operations. This dynamic landscape also sees increased cybersecurity budgets, steady demand for network and system engineers, and a general correction of rates across the tech and digital sector. While top-tier contractors are anticipated to secure work at competitive rates, mid-tier candidates may need to adjust their expectations to remain competitive in the evolving market.

Discover salaries

Our experts interact with hiring managers and candidates daily, giving us unique, real-world insights into the latest salary and benefits trends.


Talent Insights

Tech Talent

96k technology professionals with an average tenure of 1.7 years

(source: LinkedIn Talent Insights)

Gender Identity

% Female
% Male
*This information has been retrieved from sources with gender binary data. We acknowledge those who do not fit within this framework and understand there are more gender identities beyond the binary.
(source: LinkedIn Talent Insights)

Top Employers

  • Telstra
  • ANZ
  • NAB
  • Monash University
  • Coles Group
(source: LinkedIn Talent Insights)

Top Skills

  • Microsoft Azure
  • Microsoft Power BI
  • Jira
  • Machine Learning
  • Python

Living in



Melbourne is a mecca for people who want to live in a vibrant city with access to the best food, wine, art and culture. The rapid growth of the technology industry, supported by the fact Melbourne is home to more than half of Australia’s top 20 tech companies means that the city is attracting some of the world’s best tech talent.

Melbourne has been named one of the most liveable cities in the world by the Economist Intelligence Unit due to the city’s dynamic business environment, education opportunities, quality of life and globally connected multicultural communities. The costs of living are on par with Sydney with housing slightly less, but as you will see in this guide, the salaries are relative to the costs.

Coffee icon



Average cost of a coffee

Home icon




Average rent for 1 bed flat

Gym icon




Average gym membership

Looking for your dream job?

We're the API between you & your dream career in tech, transformation and beyond.

Thank you!
Your submission has been received!
Oops! Something went wrong while submitting the form.

Ready to build top tech teams?

Get in touch.

Thank you!
Your submission has been received!
Oops! Something went wrong while submitting the form.

Explore other regions

Get in touch
Call to action icon