Each year, there is demand for tech talent, but 2026 may be one for the record books as companies bid from a shrinking talent pool. At Paxus, we have witnessed firsthand how rapidly the demand for digital talent is evolving, particularly around AI and Cyber Security. Understanding what drives salary expectations and contractor rates is critical for both organisations and professionals navigating 2026’s competitive market. There is no better example of this than the Federal Government’s recent announcement that the public service is facing a potential digital talent shortfall of more than 8,000 over the next five years. The forecast is contained in the Commonwealth’s Digital Transformation Agency 2025 Digital Workforce Insights Report . It found that the workforce shortfall is due to a combination of new technologies, and that approximately 20% of the tech workforce will retire in the coming years. The Australian Public Service has a digital workforce of about 8,000, this means one new digital worker must be added for every worker currently employed. Compounding the problem, the Future Skills Organisation, an Australian government-funded Jobs and Skills Council, predicts a shortfall of more than 61,000 digital roles nationally by 2030. As the report points out, the APS will not be able to rely on the market to secure its digital workforce requirements for its future. PwC's Global AI Jobs Barometer found that AI is making workers more valuable. The report found that industries most able to use AI have seen productivity grow by nearly four times since 2022 and are seeing three times higher growth in revenue generated per employee. Jobs numbers and wages are also growing in virtually every AI-exposed occupation, with AI-skilled workers commanding a 56% wage premium, on average. Investment bank UBS estimates that companies will spend $US375 billion globally this year on AI. They project that figure to rise to $US500 billion in 2026. These are significant numbers for an industry in its infancy. While we expect candidate shortages in AI and Cyber Security, shortages are also likely in Cloud, Data, and among organisations undergoing transformation. Which specialisations will be the most in demand? As outlined earlier, there is demand in all areas of tech, although we believe Cyber Security is going to become an even more prominent part of the ICT landscape. In 2024-25, the Government’s Australian Signals Directorate received 84,700 cybercrime reports, that’s roughly one every six minutes. The Australian Computer Society says Australia has an estimated 137,000 cyber security professionals, but they project we will need an additional 54,000 specialists by 2030 to mitigate cyber threats effectively. Cloud and AI demand will remain high. AI roles are growing, but in practical delivery roles rather than big standalone AI teams. Data will keep growing as digital programs ramp back up. Cloud demand will come from many companies rushing adoption, and their requirements to optimise or re-platform their systems. Transformations are also a constant driver of demand – and that takes expertise. Look at SAP’s bid to move clients from ECC6 to S/4 HANA. That was slow this year, but we believe it will be restarting at full strength in 2026. There is strong demand for functional consultants, testers, integration people, data migration specialists and change managers. Basically, anyone with S/4 experience will be busy. That will especially be the case in Brisbane with the likes of the Brisbane City Council, the Department of Transport and Main Roads, and the Department of Justice, among others undergoing transformations. Which cities will see the strongest demand? Brisbane will see demand for the SAP migration, while Sydney continues to lead, especially across financial services, consulting and cyber. Canberra remains the most stable market, with constant demand for Cyber, Cloud and Data due to security clearance requirements. Melbourne has been steady but is expected to lift in 2026 as government projects resume, including digital upgrades, cloud initiatives, transport technology, and ERP. While Brisbane softened this year overall, it will bounce back in 2026 with more activity in energy, utilities and finance, plus strong interstate migration. We don’t expect the Olympic “halo effect” to begin until 2027, when digital and infrastructure programs ramp up. Perth will remain solid, driven by mining, resources, automation and OT-focused talent needs. Adelaide continues to grow, particularly in defence, cyber and engineering-aligned ICT roles, with steady and consistent demand. Different industries drive demand in each city: · Sydney is powered by banks and large consulting firms. · Melbourne follows state government funding cycles. · Canberra is steady because of federal projects and clearance requirements. · Brisbane is driven by major transformation programs in utilities, energy and infrastructure. · Perth ’s demand is tied to mining and heavy industry tech uplift. · Adelaide is influenced by defence, cyber and long-term engineering programs. Flexibility is just as important as salary We are finding negotiations are more balanced between clients and candidates. While clients hold more influence in markets with larger talent pools, strong candidates continue to steer the conversation. Hybrid work remains a non-negotiable for most professionals. Candidates now weigh stability and company culture as heavily as salary, prompting clients to strengthen their employer value proposition (EVP) to remain competitive. 2026 contractor rate trends Contractor rates should remain steady with small increases in Cyber, Cloud and specialist Software Engineering. We are unlikely to see the big spikes of previous years, but strong contractors with the right skills will still get strong rates. Contracting is still sitting at around 31% of ICT hiring nationally. While contracting continues to give companies flexibility, that that trend will continue. They can scale up and down based on projects, budgets and priorities. What did we learn in 2025 that we can take into next year? The market in 2025 didn’t slow, it just became more selective. Companies focused on maximising value from existing resources and made more deliberate hiring choices. This meant clients were looking for talent who could solve problems, not just fill a seat. For example, instead of hiring big project teams, our clients preferred to hire one or two strong specialists who could unblock delivery or steady a project. The big takeaway for 2026 is that demand shifts, it doesn’t disappear. People who can adapt and deliver outcomes will always be in demand. Plan Your 2026 Workforce with Confidence As 2026 approaches, understanding where demand is highest, which skills are scarce, and what rates and salaries are realistic will give you a competitive edge. Our 2026 Salary Guide & Market Insights provides: Contractor rate benchmarks and permanent salary trends across tech, digital, finance, and project delivery roles Sector-specific insights to guide strategic workforce planning Exclusive intelligence from thousands of placements and candidate engagements This data can help you make informed hiring decisions, attract the right talent, and optimise your workforce strategy for the year ahead. For a personalised discussion about your 2026 hiring plans or to understand how the trends apply specifically to your organisation, contact Nathan Coller , Senior Account Director at Paxus. Email Nathan Connect with Nathan on LinkedIn
Australia’s Tech and Digital, Sales and Marketing, and Finance workforces are entering a new era defined by stabilisation and renewed focus on business outcomes. Whether you’re an employer mapping out your 2026 workforce strategy or a professional planning the next step in your career journey, understanding what’s changing, and what salaries are on offer, can make all the difference. Our just released Salary Guide & Market Insights is our most comprehensive yet. A data-rich snapshot of contractor rates across key states, national permanent salaries, and the trends shaping the market across Government, Technology, Energy, Industrial, Financial and Professional services. Here is a taste of some insights from the guide, which you can download here to read in more extensive detail.
The energy and industrial sectors in Australia are transforming, with companies under pressure to work smarter, safer, and greener. As operations continue to go digital, the demand for data-savvy IT talent is surging. At Paxus, we are seeing that modern energy firms aren’t just looking for engineers, they are actively recruiting for data engineers, cloud specialists, cybersecurity consultants, and automation architects who can help evolve operations and drive meaningful, technology-led change. To learn more about what’s driving these trends and what it means for employers and professionals alike, we sat down with Emile Stanton, Paxus’ Industrial & Energy Sector Head. Q: From your perspective, how is the energy and industrial job market evolving, particularly as companies push for greater operational efficiency, safety, and sustainability? The job market across Australia’s energy, mining and industrial sector is evolving quickly as organisations double down on operational efficiency, safety, and sustainability targets. From a technology perspective, this shift is creating significant demand for digital talent who can modernise core systems and enable smarter, data driven operations. Companies are investing heavily in advanced analytics, automation, and integrated OT/IT environments to streamline processes, reduce downtime, and meet regulatory and ESG expectations. As a result, roles that support these capabilities such as data engineers, cloud specialists, cyber security consultants, developers, and solution architects are in high demand. Sustainability initiatives are also reshaping the market. Organisations are accelerating investment in electrification, renewable integration, carbon tracking systems, and digital monitoring tools. This is creating a need for IT professionals who can build secure data pipelines, develop digital reporting frameworks, and support real time emissions tracking and optimisation. Likewise, the push for safer operations is driving further adoption of remote operations centres, autonomous equipment, and predictive maintenance technologies – all of which demand IT talent skilled in edge computing, systems integration, and advanced analytics. Overall, the market is shifting from traditional, siloed roles toward hybrid IT profiles that combine technical expertise with operational understanding. Organisations increasingly seek candidates who can translate operational challenges into digital solutions, positioning digital talent as a critical enabler of productivity, compliance, and sustainability outcomes. Q: What technology advancements are having the biggest impact on how organisations operate and hire in this sector right now? Technology adoption in this sector is rapidly accelerating, and this is directly influencing hiring activity. AI, machine learning, and advanced analytics are driving more data-driven decision-making across the asset lifecycle — from predictive maintenance to production optimisation. IIoT and sensor technologies are providing unprecedented volumes of real-time operational data, increasing demand for candidates skilled in automation and data engineering. Digital twins and simulation models are becoming standard tools for planning, scenario modelling, and asset performance forecasting. Remote operations, robotics, and automation systems continue to reduce manual and hazardous work, creating the need for consultants who can manage, optimise, and secure these systems. Cybersecurity and cloud expertise is also proving crucial in the merging between IT and OT environments, prompting companies to prioritise hiring security architects, OT security specialists and cloud engineers who understand industrial operations. Whilst demand in these niche roles continues, so does the demand of project services professionals including business analysts, project managers and change managers. They ensure large-scale digital initiatives are effectively delivered and embedded. These roles bridge technical teams and operational stakeholders, manage scope and governance, and lead the cultural and behavioural changes needed for successful adoption. Without them, organisations struggle to realise the full value of their technology investments. Q: Between the rise of data-driven operations and broader industry pressures, what capabilities are organisations prioritising most, and why? In response to increasing digitalisation and external market pressures, companies are prioritising capabilities that directly improve operational outcomes, strengthen compliance, and mitigate risk. Data engineering and analytics skills sit at the top of this list because organisations recognise the value of leveraging their existing operational data to reduce downtime, improve asset reliability, optimise performance, and improve decision-making. Automation and remote-operations capabilities are also key, helping companies improve safety and working conditions, stabilise operations in remote locations, and reduce dependency on travel. Project services functions are increasingly critical to deliver complex, large-scale digital initiatives. Companies are also maturing their workforce planning and ability to flex their talent models in line with project cycles, so they can mobilise quickly when approvals or decisions shift. Q: With high demand for data and technical skills, how are organisations approaching talent retention and forecasting workforce needs to address skills gaps? To tackle skills shortages, organisations are investing heavily in workforce development, retention strategies, and long-term capability forecasting. Many are building internal academies or partnering with educational institutions to reskill existing staff into high-demand areas such as data engineering, automation, cloud, and cybersecurity. Workforce planning is becoming more closely aligned with project pipelines, mapping talent needs to project approval cycles, construction phases, and operational timeframes. This helps companies decide when to hire permanent staff, when to leverage contractors, and when to develop talent internally. Retention strategies include offering clearer career paths in digital and technical streams, providing flexibility where operationally possible, and using targeted benefits or bonuses to retain scarce skillsets. Expanding talent pools is another focus through migration pathways, graduate programs, and diversity-focused initiatives. These help broaden participation in technical roles. Trusted recruitment partners are increasingly valuable. With talent shortages widespread and highly specialised skills difficult to source, organisations are relying more heavily on specialist recruiters who understand the nuanced requirements of energy, mining, and industrial IT roles. These partners provide market intelligence, access to passive talent pools, benchmarking insights, and rapid mobilisation of both permanent and contingent workers. By collaborating with recruitment partners early — particularly during forecasting and project‑planning phases — organisations are better equipped to anticipate skills gaps, reduce time‑to‑hire and maintain continuity across critical digital initiatives. Q: What guidance would you give to organisations and professionals navigating these changes in the energy and industrial market? For organisations, the most important step is to align hiring decisions to strategic project timelines and digital transformation priorities. Instead of hiring reactively, companies would benefit from mapping their critical roles in advance and planning how to acquire or develop each capability, whether through internal development or leveraging trusted resourcing partners. Developing hybrid skill sets internally — where domain experts gain competency in data, automation, or cloud technologies — is one of the most cost-effective and sustainable workforce strategies. Considering ongoing talent shortages, organisations that combine internal upskilling pathways with well-structured use of contractors will be best positioned to maintain operational continuity. An increasingly vital part of this strategy is partnering with trusted recruitment specialists. The complexity of modern digital roles — and the scarcity of skilled professionals across the energy, mining, and industrial sector — means organisations benefit significantly from recruitment partners who understand market conditions, emerging skill trends, and niche technical requirements. Engaging these partners early allows companies to forecast talent needs more accurately, shorten hiring timelines, access passive candidate networks and ensure project-critical roles are secured ahead of demand. For professionals potentially looking for their next opportunity, the focus should be on developing a T-shaped skillset: deep expertise in a core area complemented by digital capabilities such as data analysis, cloud, automation, or OT cybersecurity. Candidates should aim to demonstrate measurable impact, which sets them apart in a competitive market. Working with trusted recruitment partners can provide early insight into emerging opportunities, access to unadvertised roles, and guidance on how to align skills with evolving industry demand. Staying adaptive, digitally capable, and connected to market trends positions candidates to thrive as the energy and industrial sector continues to transform. Key Takeaway Australia’s energy and industrial sector is evolving rapidly, with technology, data, and digital talent at the heart of operational efficiency, safety, and sustainability. Success for organisations hinges on strategic workforce planning, hybrid skill development, and partnering with trusted recruitment specialists. For professionals, adaptability and cross-functional digital expertise are key to thriving in this dynamic market. Learn More & Connect Discover how Paxus can support your energy and industrial recruitment strategy and connect with the right talent. Explore our Energy & Industrial Recruitment Services to learn more about how we can assist you with your next hire. For personalised advice or to discuss your organisation’s hiring needs, reach out to our Energy & Industrial Sector Head, Emile Stanton. Email Emile Connect with Emile on LinkedIn
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