Tech professionals seek flexibility despite shrinking job market

A new report highlights a disconnect between the career aspirations of Australian technology professionals and the current realities of the job market.

The "Technology & Transformation Talent Outlook 2025" report, released by Talenza, shows that 61% of tech professionals intend to change employers within the next 12 months, despite a significant contraction in available roles. According to data from SEEK, technology job postings have fallen by 21% year-on-year, with application rates increasing fourfold.

This shift is set against rising national unemployment and ongoing long-term shortages of tech skills. Roy Morgan research indicates that Australia's real unemployment rose by 176,000 in April 2025, reaching 1.78 million people, or 11.2% of the workforce. This jump has been attributed largely to a surge in workforce participation, with the workforce expanding by 156,000 to a total of 15.95 million people. Over the same period, total employment is reported to have fallen slightly by 20,000 to 14.17 million.

Despite the short-term contraction, long-term workforce requirements for Australia's technology industry remain significant. The Tech Council of Australia reports that 935,000 Australians are employed in technology roles. To meet the jointly established target with the federal government of 1.2 million tech workers by 2030, an additional 600,000 professionals will be needed. This is a considerable challenge in light of the current employment environment and growth rates.

The Talenza report surveyed technology professionals mainly based in Sydney and Melbourne, representing 49.76% and 18.34%, respectively, of the participant base. The findings underscore a growing misalignment between what workers expect and the situation in the market.

"These findings reveal a fundamental shift in Australia's tech employment dynamics," said Henry Gatehouse, CEO of Talenza. "Despite a contracting job market and rising unemployment, tech professionals continue to prioritise flexibility, compensation, and career growth – often planning job changes to secure these benefits. This short-term volatility is unfolding alongside a long-term talent shortage that demands strategic workforce planning."

The report reveals several notable trends among technology professionals. Flexibility in the workplace is considered essential, with 54.85% of respondents identifying it as a critical factor in their choice of employer, and 81.96% expressing a preference for hybrid or remote work arrangements. In terms of motivation, 61% of respondents who changed employers in the past year received a salary increase, including 39.58% who secured a raise of more than 10%.

Work-life balance has become an equally important factor alongside compensation, with 51.41% including it among their top five workplace priorities – closely aligned with the 51.62% who prioritise salary and benefits. Only 12.32% identified upskilling as their primary concern, and just 14.34% prioritised work with the latest technologies. This suggests a potential skills gap as artificial intelligence and automation increasingly shape industry trends.

The current trend of employees moving between organisations remains substantial: 37.92% have changed employers in the past year, indicating that the so-called "Great Reshuffling" continues despite prevailing economic uncertainty. Poor relationships with managers or colleagues are also influencing decisions to move, with 41.03% citing this as a major reason for leaving their previous roles.

"In a climate where unemployment has climbed to 11.2% and tech job postings have dropped by over 20%, organisations that understand this new reality will be best positioned to attract and retain top talent," added Gatehouse.

He further commented on the emerging strategies for employers: "The companies that offer flexibility, competitive pay, meaningful work, and career development will lead – not just today, but in the years ahead as we work toward closing the tech talent gap."

The findings from this report highlight both immediate challenges in the technology employment landscape and the long-term effort required to meet national workforce targets in the face of persistent skills shortages.