Here in Canberra, I think there are a few additional factors at play compared with the broader Australian IT market. The biggest is the current Federal Government’s push to build more IT capability within the APS and reduce its reliance on external labour hire contractors. That has certainly reduced the volume of some of the traditional contracting opportunities. However, I wouldn’t interpret that as the Government needing less technology capability. In many cases, it’s actually the opposite. The Government is continuing to invest heavily in digital transformation, cyber security, cloud, data and AI, but it is becoming much more selective about how that capability is sourced. In Canberra, security clearances are also a major factor. Someone can be an excellent technology professional, but if they don’t have the clearance required for a particular department or program, their opportunities to find IT roles are heavily reduced.

In Canberra, I think the contractor market is particularly sensitive to this because Federal Government is a very significant buyer of technology capability. During the period of intense competition for technology talent, agencies and their delivery partners were prepared to pay significant premiums to secure IT resources. We’re now seeing much more discipline around rates and a much greater focus on value for money. The reduction in contractor reliance is also having an impact. If an agency is trying to insource capability or convert contractor positions into permanent APS roles, that naturally puts pressure on the contractor market. But again, it’s not uniform. We’re still seeing strong demand for people with highly specialised skills, particularly in cyber security, cloud, data, enterprise architecture and complex program delivery. The people who are security cleared and can demonstrate a combination of technical expertise and experience operating in government environments can still command a premium.

For some candidates, particularly those coming from sectors that have slowed significantly or those with highly specialised experience, job searches are taking longer than they would have a few years ago.

There are simply fewer opportunities available than during the peak hiring years, and employers are often taking longer to make decisions. In many cases, organisations are conducting more interviews, seeking additional approvals and carefully assessing every hire.

We’re also seeing candidates face increasing competition. Advertised roles are attracting significantly more applications than they did in the past, making it harder for individuals to stand out.

The positive aspect from a Queensland perspective is that candidates who possess in-demand skills and remain flexible about industry, contract versus permanent work or adjacent opportunities are generally finding work more quickly. As activity levels continue to improve across several sectors, I would expect those timeframes to shorten.

Yes, we are seeing that some IT professionals are spending longer on the market than they would have historically, particularly candidates in more generalist or highly competitive areas. A few years ago, an experienced IT professional actively seeking a new role could potentially have several opportunities in front of them. Today, there can be dozens of suitable candidates competing for the same position, and employers have more time to assess their options. We’re also seeing longer recruitment processes. That’s important because every additional week a candidate spends waiting for a decision increases the length of their overall job search. So there are really two things happening: fewer opportunities in some parts of the market and slower decision-making from employers. Together, those factors can significantly extend someone’s time between roles.

I don’t think the issue is too much specialisation or a lack of standardisation in qualifications. The bigger challenge here in the Canberra market is that government technology environments are extremely complex. An agency may need someone who understands cloud, for example, but they may also need that person to understand security controls, government procurement, legacy systems, enterprise architecture, governance and the particular operating environment of the APS. That’s a very different proposition from simply finding someone who has a cloud certification. We’re seeing the same thing with cyber, data and AI. Our clients within the Federal Government don’t just need people who understand the technology. They need people who can apply that technology within highly regulated, security-conscious and often very complex environments. That’s why I think demonstrated experience is becoming increasingly important alongside formal qualifications.

Yes, we have been seeing some pressure on entry-level roles. The Federal Government is under pressure to improve productivity and get more value from its technology investment. At the same time, agencies are looking at AI and automation and asking how much work can be delivered with smaller or more productive teams. There is also a second factor in Canberra. When agencies are reducing contractor numbers, they aren’t necessarily replacing those contractors with junior people. They’re often looking to retain or build higher-level capability internally. That can make it harder for someone early in their career to get that first significant government technology opportunity. The irony is that the APS also needs to build a sustainable technology workforce. The Government’s own Data, Digital and Cyber Workforce Plan recognises the need to attract, develop and retain this capability. So I think the challenge for Canberra is making sure that the current focus on productivity and insourcing doesn’t unintentionally weaken the pipeline of future technology professionals.

What I’m hearing from candidates is a real concern about being left behind, and I think that concern is justified to an extent. But the answer isn’t necessarily to abandon your existing specialisation and try to become an AI expert. The people who will be best positioned are likely to be those who combine their existing expertise with an understanding of how AI can be applied to their work. We’re moving towards a model where AI literacy becomes part of being a technology professional, rather than being a completely separate career path. I would encourage IT professionals to upskill in AI, but strategically. Don’t throw away ten or twenty years of experience to chase the latest technology. Learn how AI makes your existing expertise more valuable.

This is a concern I hear from some of our jobseekers, particularly when they’re seeing organisations restructure technology teams or move certain IT functions offshore. Outsourcing is a part of the technology market. Organisations are making decisions based on cost, access to skills, operating models and where particular capabilities need to sit. What I do think is happening is that some of the more repeatable or commoditised technology work is under greater cost pressure. That can include work that is relatively easy to offshore or automate. At the same time, there are many areas where Australian organisations still rely on local talent, especially here in Canberra with a large majority of roles involving security, government, critical infrastructure, stakeholder management, architecture or complex transformation. I would personally be more concerned if I were a technology professional whose value proposition was based purely on performing a repeatable technical task. The stronger position is to combine technical capability with business understanding, problem solving and the ability to operate in complex environments.