​As successive interest rate rises continue to impact the economy and weigh on employment growth, job ads have fallen below pre-COVID levels for the first time since 2019. It’s no shock then, that the period of record growth which peaked in 2022 and lasted into 2023 has come to an end.

We’re seeing this reflected in the market with both candidates and employers on an operational and strategic level. The power that once sat with job seekers is currently in the hands of employers. It’s an opportunity for employers to snap up excellent talent who can deliver on key projects, and for candidates to evaluate their upskilling or cross-functional opportunities rather than solely focusing on remuneration.

Having said all that, there are some optimistic signs, with annual wage growth up 4.1% last quarter. We see this reflected in the Paxus rate data too, with a 3% overall increase in average IT contractor rates since February 2024. This is particularly true of the ‘Low’ average rates for more junior candidates, represented by a 4% increase. In the same vein, 39% of employers are still reporting recruitment activity and 1 in 5 expect to increase staff levels in the future.

​Market Trends

As the IT employment landscape adapts to shifting economic conditions, several key trends are shaping the future of the industry. Both employers and candidates are rethinking their priorities, and understanding these trends can help organisations stay competitive and employees thrive in this evolving market.

Flexible Work Demand

Despite murmurs of stricter return to office policies in 2024, flexible and work from home options don’t look to be going anywhere. Even in the face of a market slowdown, data shows that 9.4% of job ads on Seek indicate the role can be fully remote, down only 1.6% from the previous year. Flexible work options as part of client Employee Value Propositions (EVP) also remain increasingly important for those who would like to secure the most and best candidates. Its importance grew by 10% amongst all job seekers in the last few years. Employers who are viewed as being flexible are 29% more likely to receive an application from a candidate who viewed one of their jobs.

Skills-based Hiring

The skills required for individual and company success (particularly in tech) continue to evolve at a rapid pace. By broadening criteria beyond qualifications and making skills-based hiring a priority, employers can widen the candidate pool tenfold. Even in an employer-driven market, why not give your company the best chance to adapt to new requirements?

Internal Career Development

Nurturing a flexible but engaged workplace isn’t as simple as just offering hybrid work. While flexibility remains the priority for many candidates, in this market employees are seeking internal “career development that builds cross-functional skills and career diversity”, according to Kathleen McCudden – SEEK Chief People & Culture Officer. At the same time, employers are continuing to focus on filling skills gaps internally. 1 in 2 recruitment leaders across Australia and New Zealand say their organisations are assessing the talent and skills needed to keep pace with the rise in areas like AI. By offering candidates potential upskilling opportunities, employers can fill their own skills gaps whilst offering career development.

Interested in more market insights? Discover the top tech roles, contractor rate data and more in our latest Salary Guide + Market Insights publication to find out.

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If you’re looking for your next role or looking to fill roles – get in touch with our team across Australia or search our open roles now!

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