Tech sector sees the biggest bump in wages

Australian tech workers command top pay in competitive job market

Tech sector sees the biggest bump in wages

Australian tech professionals continue to lead the country in wages, earning $20 more per hour than the average worker.

Science and technology sector wages climbed nearly 4% from the previous month and more than 6% year-on-year, found Employment Hero’s SmartMatch Employment Report for December 2024.

The median hourly rate for science and technology workers now stands at $63.50, significantly higher than the overall average of $42.20 per hour. This equates to an annual salary of approximately $130,000, placing tech far ahead of other sectors in remuneration.

In comparison, workers in construction and trade services earn a median hourly wage of $52.60, followed by healthcare and community services at $47.50.

Tech sector wage growth outpaces most industries

From December 2023 to December 2024, median hourly wages across all industries grew by 4.5%, with full-time workers experiencing a 5.4% increase. However, science and technology professionals saw one of the largest gains, with a 6.1% annual increase, second only to construction and trade services.

Tech salaries are now 33% higher than the national average, a testament to the ongoing demand for specialized skills in the sector. The report also highlighted a 7.9% annual increase in tech sector employment, marking it as one of the fastest-growing industries, despite a slight 1.2% dip from November to December.

Tech employees worked an average of 142 hours in December, the highest across all sectors, with a 1% month-on-month increase. This reflects the continued demand for expertise in areas such as cybersecurity, cloud architecture, and network administration.

Advertised salaries for tech roles have also seen consistent growth. According to the Seek Advertised Salary Index, salaries across industries rose 0.3% month-on-month in December 2024, with a 3.6% increase over the past year.

However, the report warns that advertised salary growth may slow as labor demand cools, echoing comments from Seek senior economist Dr. Blair Chapman.

Specialized skills drive premium pay

Despite impressive salary growth, the tech job market presents challenges. The number of advertised roles has dropped to pre-pandemic levels, while job applications have more than doubled over the past two years. Nearly 40% of tech job seekers reported difficulty finding new roles, underscoring heightened competition.

These trends follow a period of stagnation for the sector. In 2023, the median hourly rate for tech workers saw a slight decline, dropping from $57.20 to $57.12—the only sector to experience a pay decrease during that time. Yet, even then, tech remained the highest-paid sector in Australia.

Workers with niche expertise are commanding significant pay increases. A survey by Robert Half last year found that candidates with cybersecurity skills could see a nearly 30% salary boost. Other high-demand skills include leadership, security and privacy, cloud operations, and systems administration.

For HR professionals, the trends underscore the importance of competitive compensation strategies and targeted talent acquisition. As demand for tech workers continues, organizations will need to prioritize retaining top talent while navigating a competitive labor market.