Market Overview

Economic Sentiment:

Continued interest rate cuts and New Zealand officially exiting recession (modest 0.7% GDP growth in Q4 2024) created conservative optimism across the Auckland market.

However, the impact of US tariffs (10% on all NZ exports) has contributed to a drop in business confidence. For exporters and those with international exposure, the future may feel uncertain.

Also in parallel, as we head into the NZ Govt Budget, expect continued fiscal restraint in the public sector. The Government has cut discretionary spending by more than half, from $2.4B to $1.3B, a sign that austerity will continue into the foreseeable future.

Technology & IT Market:

According to SEEK’s March Employment Report, the ICT job market continues to cool, with job ads down 5% month-on-month and 18% year-on-year. The competition for roles also continues to increase, with applications per job rising by 4%.

In contrast to that data however, the Talent Auckland team’s role and placement volume is increasing month on month. The majority of new job requisitions in and job placements are in the areas of data analysis, engineering, and business analysis. There is noticeable increase in leadership changes and hiring of new leaders who can successfully initiate and lead change.

Offshoring continues to gain momentum as a cost-driven strategy with Spark’s recent announcement as an example signaling a growing reliance on global talent to build a more flexible, scalable workforce model.

AI as a disruptor and for the opportunities is a significant talking point. Some clients have made significant strides implementing AI taskforces, appointing AI leadership roles and have either had successful implementations or successful pilot programmes. Over in Australia, the hottest new role companies are hiring for quickly are Heads of AI or Chief Artificial Intelligence Officers. Candidates are commanding salaries in the range of $250,000 to $500,000 plus, before short- and long-term incentives. According to our teams over the ditch, boards are the ones who are pushing these roles.

On the other hand, we are also speaking with clients where AI is still very much a discussion, and they are business casing. Many organisations however agree that in the medium term, there will be a shift towards leaner and more AI enabled teams. What that means in the short term is likely an increase in contingent hiring whilst organisations form a view of their skills gaps and what their time horizons will be to realise these changes.

Candidate needs

The top concern for candidates in today’s market continues to be job security and transparent, clear communication from leaders is needed now more than ever. Flexibility, while still valued, is increasingly negotiable.

AI Upskilling: As AI reshapes the workforce, the demand for AI-skilled professionals is growing rapidly. Employees are prioritising learning opportunities in AI, data science, and automation to remain competitive. Companies that offer these upskilling opportunities will find it easier to attract and retain top talent.

Location Mobility: New Zealand is seeing an increasing number of candidates considering moves to Australia, lured by its more robust market.

Retention and Engagement: LinkedIn’s 2025 Workplace Learning Report highlights that organisations that promote career mobility see stronger engagement and higher retention rates. In the context of a leaner workforce, companies should provide clear career development pathways and transparent communication to keep their employees engaged.

Business needs

For employers, the “new normal” is operating with leaner teams, driven by both economic necessity and the strategic need to remain agile in the face of technological disruption.

Priorities for businesses now include:

Reducing onboarding time by prioritising candidates who need minimal investment.

Implementing AI and automation in data processes to streamline operations and improve efficiency.

Hiring leaders who are proven at initiating and executing change

Leaders or technical practitioners who can support the organisation on it’s AI journey

The year ahead

While job ad volumes are yet to fully rebound, contractor extension rates at Talent NZ are at their highest in 12 months, an encouraging sign of confidence among employers.

Given the high pace of technological change and the transformative impact of AI, we anticipate increased volatility in the short-term. However, this also presents an opportunity for those who can adapt quickly.

We recommend the following actions for businesses looking to thrive amidst change:

• Invest in AI education for your leadership team, ensuring they are equipped to manage change and drive growth in an AI-powered environment.
• Proactively engage with contractors and talent now to secure the essential skills you will need in the near future.
• Regularly check in with your key talent about their professional development and concerns for FY26.
• Consider your workforce data (from engagement surveys to exit feedback) to identify how to best retain and motivate your talent in a leaner environment.
• Create “show and tell” opportunities for employees to self report their AI use cases

Amid the uncertainty, opportunities abound for those prepared to reset, recalibrate, and thrive in a rapidly changing environment.

Talent RISE has been recognized on the national stage, taking home the Best Contribution to the NZ Tech Sector at the prestigious 2025 NZ Hi-Tech Awards.

The award highlights Talent RISE’s outstanding work in empowering young people, particularly those from underrepresented backgrounds by opening pathways into meaningful employment in the tech and innovation sector.

Held in front of a sold-out crowd of over 1,300 at the TSB arena in Te Whanganui-a-Tara, Wellington, the 2025 NZ Hi-Tech Awards showcased Aotearoa’s most innovative and impactful tech companies. The judges praised Talent RISE for its “genuine commitment to social impact through, talent development” and called out its ability to “turn real-world barriers into real-world opportunities.”

Shanelle Patridge, Kaiārahi, Talent RISE Youth Program Manager for New Zealand, said:
“This award is a huge honour and a testament to the incredible young people we work with every day. At RISE, we believe talent is everywhere, but opportunity is not and we’re here to change that. Being recognized alongside so many incredible innovators across the tech ecosystem reminds us that inclusion and innovation must go hand in hand.”

‘The ROI of AI in procurement isn’t always about speed or savings. It’s also about better decision-making, supplier transparency, and creating space for value-led work.’

The buzz around AI isn’t slowing down, and in the procurement space? It’s ramping up.

Last week, at Talent’s Future Trends for AI and technology event in our office in Melbourne, the room was full of procurement and professionals asking the same question: Where is AI taking our industry and how do we keep up?

With the expertise of APA Group’s Head of Procurement Excellence, Lexia Laracy, and Leader of Technology & Corporate Category Management, James Sharman, the session unpacked what’s happening on the ground right now, what’s failing, and where the biggest opportunities are.

1. AI is here but most are struggling to use it well

From forecasting and spend analytics to supplier risk and contract automation, AI is already weaving its way into procurement teams. But there’s a gap between what’s possible and what’s actually working.

“85% of AI projects in procurement fail.”

The reason? Not the tech but everything around it: unclear strategy, messy data, lack of governance, and resistance to change.

Executives are excited but often frustrated. They want transformation at speed, but pilots don’t scale, outcomes aren’t clear, and the data foundations just aren’t there.

APA’s take? The tools are only as good as the ecosystem they’re plugged into.

2. A human-centric, data led shift

Throughout the session, one key idea kept surfacing: AI is not replacing people, it’s reshaping roles.

With automation taking over admin-heavy tasks like invoicing or basic sourcing, procurement teams are shifting from “process runners” to strategic advisors, ESG partners, and relationship builders.

But that shift isn’t automatic. It demands new capability frameworks, role redesign, and a serious focus on bringing multi-generational teams along for the ride. Some procurement veterans fear being replaced. Digital natives are frustrated by the pace of change. Lexia and James stressed the importance of clear communication, active change management, and recognising the value all generations bring to AI adoption. Lexia and James stressed the importance of clear communication, active change management, and recognising the value all generations bring to AI adoption.

3. Procurement is uniquely positioned to lead AI adoption

One of the standout moments was when Lexia described procurement professionals as the connectors of the business.

Unlike siloed functions, procurement touches almost every corner; finance, legal, risk, sustainability, tech. This makes them a natural fit to lead AI adoption. But it also means the stakes are higher if things go wrong.

To avoid the common traps, APA and other leading teams are focusing on a few core areas:

• Governance first: Align AI with ethics, values and strategic risk tolerances.
• Data integrity: Poor data in = poor outcomes out. Procurement must own its data foundations.
• Process documentation: AI can’t optimise what it doesn’t understand. Every manual workaround is a future barrier.
• Use case prioritisation: Start with what matters, risk, cost, ESG, efficiency and build from there.

4. Rethinking ROI: It’s not just about speed

The ROI of AI in procurement isn’t always about speed or savings. It’s also about better decision-making, supplier transparency, and creating space for value-led work.

Tools like predictive supply chains, generative tender creation, and supplier risk scoring are just the beginning. APA highlighted the value of focusing not only on technology ROI, but also on people ROI, freeing up skilled procurement talent to do the high-impact work they were hired for.

And while off-the-shelf solutions can look shiny, the panel reminded us that customisation isn’t always the goal. Standardisation and usability are what drive adoption at scale.

Key takeaways

1. Don’t get distracted by the hype. Focus on data, governance, and change management before chasing shiny tools.
2. AI is a capability amplifier, not a magic fix. It works best when it complements human expertise.
3. Procurement has a chance to lead. With their cross-functional influence, procurement professionals are well-placed to drive meaningful AI adoption.
4. Every organisation is on a different journey. Whether you’re in firefighting mode or thinking digital twins, the key is progress over perfection.

“We don’t want to be the 85% that fail. Let’s build systems and teams that give AI something meaningful to work with.”

Looking to implement AI into your business strategy?
Learn more here or get in contact with us if you’d like to discuss any of this further here.

Market Overview

Survive to 2025 was last year’s motto.

Leaders went away for the Christmas holidays hoping the beginning of 2025 would start with more optimism. However, January and February statistics from sources we follow tell us that if there was optimism, it didn’t yet translate into the employment market.

In February 2025, job advertisements on SEEK New Zealand decreased by 17% compared to February 2024. On a month-to-month basis, there was a 2% decline from January to February 2025.

Seek NZ Country Manager Rob Clark tells us, “After two years of steady and significant decline in job ad volumes, the past eight months have been broadly flat. While we may not be out of the woods yet, the days of significant, broad-based drops in worker demand should be behind us.”

It was confirmed that NZ eased out of technical recession last quarter, with 0.7% growth in the GDP.

As we end the fiscal year for a lot of New Zealand organisations, one must be wondering if we’re going to see renewed budget and investment released soon. Organisation’s will also be closely watching the Government budget announcements in May; who and what will receive investment and what is the latest plan to “get New Zealand back on track”.

From 1 April, there are a number of new initiatives being rolled out by the government.

An interesting one is an additional 1% interest added to student loan interest rates for overseas borrowers, on top of the yearly re-calculation in rates that occurs.

Given student loans don’t bear interest if you’re living and working in NZ, will this help to halt what has seemingly felt like an exodus of our young, bright talent?

Should we interpret this combined information to mean that we are at or past the trough in our market now?

The year ahead

Considering I’ve now committed to updating this market update monthly is an indicator of just how inconsistent the market has been.

For some positivity, from an anecdotal perspective over the last couple of weeks, the employment market seems to be slowly picking up. It will be interesting to see if this is reflected in key indicators and reports that we follow and if there is genuinely a market change.

Talent NZ contractor extensions are being confirmed at a much higher percentage than in the past 12 months – we take this as a sign of increased confidence too.

We believe we are likely at a tipping point. From our experience of riding several market downturns, our market has shallow highly skilled talent pools so when the market turns it will turn fast.

We recommend that:

• Organisations strategically invest in their engagement and retention of high potential and high performing team members. Engagement survey data & exit survey data is key here.
• In parallel, leaders must identify key members in their teams and ensure you’re having open, transparent two-way communication.
• Even though job security has been a very high motivation, if an employee or contractor is not clear on what the future holds, then there is increased risk of them either actively considering opportunities or being responsive to approaches.
• With your contracting workforce, get proactive and lock and load the key talent you need in from an extension perspective. Ensure they know they are critical to the work or project.
• For your upcoming pieces of work, where are your skills gaps? Where you will require external talent, engage specialist recruitment organisations like Talent early and let’s work with you to create a plan.

To finish with something cheesy, because why not, if you’re still “surviving in 2025” now is the time to pause and ensure you have a plan to thrive in 2025.

Within the context of New Zealand’s turbulent economy, where cost-of-living continues to rise and employees are increasingly deciding to move to Australia or other places overseas, what’s something you can do internally to keep your employees engaged despite challenging conditions externally?

It’s time to home in your focus on company culture; the set of shared attitudes and behaviours that define the people in the business as outlined in the company’s mission and vision.

Why culture matters more than ever

While it seems like a nice-to-have, why should business leaders prioritise this into a must-have? Research shows that a focus on employee engagement during tough economic times can help companies withstand and even thrive.

• Employee engagement: Fostering a sense of belonging and purpose among your people leads to motivated and resilient teams and increased job satisfaction
• Talent attraction and retention: Attract top talent who align with the organisation’s values and help retain your top talent by creating a supportive work environment
• Performance and productivity: Promoting collaboration, innovation and a focus on achieving common goals leads to an increase in productivity
• Employer brand: Company culture influences the external perception of the business, shaping perceptions to clients and potential top talent you’re looking to hire
• Employee wellbeing: Prioritising mental health and work-life balance contributes to a healthier and more supportive workplace, and helps produce higher quality work

Practical tips for leaders

As the foundation of an organisation’s identity, how can leaders maintain or build this culture? Megan Woodbury, Global Chief Operating Officer at Talent, shares her insights.

“Resilience is an important trait to foster among your people. Building a work culture and trust in leadership through open communication will keep your teams engaged and help maintain morale,” Megan says.

Workplace culture is critical to maintain; assess what your people need to succeed, whether it’s flexible working arrangements, additional L&D opportunities, or mental health support. Position the wider company to succeed when the market recovers by keeping them engaged; keep open lines of communication, celebrate the small wins, and emphasise the business’ long-term vision by fostering resilience. “People want clarity and transparency, and CFOs must talk openly, and face-to-face to ease their worries,” says Megan.

Keeping the wider team engaged is key to retaining the staff who are instrumental in driving the organisation’s success. CFOs should identify critical roles and high performers and develop retention strategies that keep these vital team members engaged and motivated. Transparently sharing both good and bad news about the business’ financial health and the reasoning behind why decisions are made helps reduce uncertainty and fosters trust among the business. Focus in on the company’s employer brand, and ensure it remains attractive.

Wellbeing on a budget

We understand that resources can be limited when the market is uncertain, so for those who want to make strides in company culture, Oonagh Hall, General Manager of Human Resources at The Trusts, says to keep it simple: “Initiatives like shared lunches, social activities, and fostering a culture of openness can have a powerful impact.”

When it comes to your people’s wellbeing, you don’t need to reinvent the wheel. A Talent survey of over 2000 workers revealed that a significant 77% value remote work the most when it came to flexible work arrangements. From initiatives such as mental health days to allowing the flexibility to work remotely, there are a range of initiatives that have varied costs and investments involved. Allowing your people to take a break when they need it or being able to be online while at home or away, can foster a sense of trust and understanding, and overall happier employees.

Wellbeing and culture don’t always require large budgets; what matters is the authenticity in your approach and meeting your people where they’re at, even without a dedicated budget.

Maintaining culture and engagement within your teams is important no matter the department and continues to remain a key focus area for successful leaders. From Board and C-Suite to Heads and Managers, we’ve gathered insights from 26 business leaders across industries who’ve thrived in turbulent markets. Read our leadership guide here.

Looking to improve your people strategies? Whether it’s people, process, technology, or brand, our advisory service takes a modular approach to tackling specific gaps or dysfunctions. Learn more here.

Auckland Market Overview

It’s a new year and with that, brings a lot of opportunities.

2024 was an up and down market for us Kiwis. The economy was tough and that had a knock-on effect for the hiring market. There were some great wins though towards the back end of the year with the Reserve Bank lowering the Official Cash Rate. AI took centre stage, and cybersecurity was still a hot topic for businesses.  There’s no doubt, leaders will still be focusing in on these areas as we begin 2025. Let’s get into what we’re experiencing currently.

We are nearing the next Reserve Bank meeting (happening on the 19th of February) where they’ll discuss potentially lowering the Official Cash Rate (OCR) again. Rumours are swirling with the major banks’ economists picking 0.50%. With this in mind, many mortgage holders are hoping this will ease worries, however it has been reported much of the drop expected throughout the year has already been priced into rates. Time will tell though, as if one bank drops their rates further, we’d hope that others will follow suit to stay competitive. With the Trump administration in power, that could potentially influence the rest of the world’s economies and inflation rates. Time will tell.

According to Stats NZ, New Zealand’s annual net migration gain continues to fall but the number of departing Kiwis looks to have peaked. The net gain for the year to November 2024 was 30,600. That number was made up of a net gain of 78,500 non-New Zealand citizens and a net loss of 48,000 New Zealand citizens. Meanwhile, the 127,800 migrant departures in the November 2024 year were, provisionally, the highest on record for an annual period, Stats NZ said.

According to SEEK, job ads fell by 23% for December 2024. This is tough to hear as it was only a few months ago that we’d seen a lift. These results may be indicative of businesses slowing down given it is after all the December period and potentially were waiting for the new year to begin before making critical hires.

It’s not all industries that have seen a halt though. SEEK Country Manager, Rob Clark, said, “Some industries ended the year with more opportunities, including banking & financial services and insurance & superannuation, thanks to growth spurts at the end of the year.”

Now when you consider all of this and that markets move in cycles, one can’t help but think if spending / investment / project decisions are building up when they push go, will they all push go together?

Candidate needs

• Security; whether that’s for perm or continuity of their extension. Security is by far the highest priority.
• In line with that, increased, frequent and consistent communication from their workplace to assure them of the organisation’s plan.
• If they have flexibility in their role, for that to continue. This is a perk people really do not want to give up if they have it established. However, we are seeing candidates begrudging soften on this in line with job security.
• Making themselves “sticky” in a highly changeable employment market.
• Drive to increase their personal brands, networking given the changeable nature of workforces.
• Increased AI literacy – there is a growing sense that if you don’t increase your AI knowledge you’ll be outpaced by those who do.

Business needs

• Contractors who hit the ground running, add significant value and don’t take up a lot of management bandwidth. Highly likely in permanent candidates too.
• Increased physical visibility in the office across both contractors and permanent employees.
• Continued initiatives to reduce the cost of their workforce and driving efficiencies.
• Streamline processes and automate where possible. Drive increase in productivity.
• Leadership who can lead change and can do so in volatile times.
• AI and data governance strategies.

The year ahead

The year ahead will be an interesting one for us Kiwis. What some may feel as a tipping point, others may think that we’re still in the thick of it. Business leaders will be grappling with the confidence to invest, however without investment they may be losing out to their competition.

I was recently reading an article from Spark CEO, Jolie Hodson, who stated that she wants New Zealand to fully embrace advance digital technologies like AI, cloud computing, and the Internet of Things (IoT).  For the past 20 years, New Zealand has consistently spent less than the OECD average on research and development. The article also stated that by international standards, our businesses are particularly low investors in R&D which as a result we’re in a place where our ability to transform businesses with technology is underleveraged.

The question remains; when is the right time to push go on projects and invest? Pressure will remain for our leaders to do more with less from their team members. The advice I would give to them is ensure clear communication and speak with honesty – team members will see right through it if it’s not. Continue to showcase empathy and have support systems in place. Be ready to pivot and empower team members to be agile. Above all, keep learning. Stay up to date with industry trends and other relevant information that can then be fed back into teams. It’s going to be an interesting market and you’ll want to keep your top talent.

Candidates want stability, long contracts for those that are contractors and a feeling of safety within a business and on a project. Continuous learning and skill development will ensure you stand out in a crowd when applying for roles. Use your voice to showcase your knowledge on industry trends through platforms such as LinkedIn. Networking is another great way to increase your visibility and help you land that top gig.

Candidates are still seeking higher salaries in line with the increased cost of living however if they are actively looking for a new job are willing to negotiate.

No matter what, looking after your team members should be any business’s number one priority. With the global tech skills shortage sticking around, NZ losing Kiwis to other markets, demand for hard-to-find, highly skilled talent isn’t going anywhere. The biggest difference between NZ and Australia is the very drastic difference between the decreasing amount of job opportunities and the significantly increasing amount of job applicants.

In my last update, I shared the statement “survive till 2025” which had been said quite a lot. Well, we’re here now. It’s not going to be a quick fix. We must set our teams up for success so we can thrive. Where we can, invest in technology and don’t be afraid to embrace AI. For candidates, upskill and continue to tap into your network. Don’t give up hope. I’m always available to meet for a coffee and a chat, as is my team.

To finish with something cheesy, because why not, let’s all thrive in 2025.

As businesses across Australia and New Zealand continue their digital transformation in 2025, certain tech skills are becoming highly sought after by employers.

Whether you’re an IT professional looking to future-proof your career or aspiring to become a tech specialist, developing expertise in these key areas can boost your employability and give you an edge in this year’s hiring market.

Let’s get into the top five tech skills in demand for 2025, their applications across the top industries hiring these specialists, and the online courses available via LinkedIn Learning, and Skillsoft Percipio which is free for Talent contractors through our ENGAGE platform.

1. Data Architecture

As companies generate and use increasing amounts of data, they need structured frameworks to ensure data is accessible, reliable, and secure. This is where data architects come in, with their role involving designing, managing, and optimising the way data is stored, processed, and kept secure within an organisation.

This year, the top industries hiring for data architecture professionals and potential applications within these organisations are Finance & Banking (managing vast transactional and compliance data), Healthcare (securing patient data management), Retail & eCommerce (optimising customer and sales data) and Government & Public Services (handling citizen data securely).

Key specialisations within this area are Data Governance & Compliance ensuring data policies align with regulations, Cloud Data Architecture which entails designing scalable cloud-based data systems, and Big Data Solutions to manage large datasets for analytics and AI.

Online courses to get you started as a data architect are ‘Learning Data Architecture’ on LinkedIn Learning and ‘Data Architecture Fundamentals’ on Skillsoft Percipio.

2. Azure SQL

Microsoft’s cloud-based database services, Azure SQL enables businesses to store, manage, and analyse structured data efficiently. Organisations migrating to cloud-based infrastructure requires specialists skilled in Azure SQL administration and development.

In 2025, the top industries hiring for Azure SQL experts and their potential applications are Corporate IT & Enterprise Solutions (managing company-wide data), Healthcare (handling electronic health records securely), Manufacturing & Logistics (optimising supply chain data), and Telecommunications (scaling large databases for millions of users).

Key Azure specialisations are Azure SQL Database Administration to configure, manage, and optimise cloud-based databases, Data Integration with Azure to connect Azure SQL with other cloud services, and Performance Tuning & Security ensuring database efficiency and security.

Online courses to gain a better understanding of this skill area are ‘Microsoft Azure SQL for Beginners’ on LinkedIn Learning, and ‘Azure SQL Administration Essentials’ on Skillsoft Percipio.

3. ITIL Implementation

Information Technology Infrastructure Library (ITIL) is a framework for IT service management (ITSM) helping businesses deliver high-quality and efficient IT services. ITIL-certified professionals can streamline IT processes, reduce downtime, and improve service delivery.

This year, the top industries hiring for ITIL experts and what the role could entail are Banking & Financial Services (ensuring IT systems run smoothly), Telecommunications (optimising IT support services), Government & Public Sector (implementing efficient IT service management), and Enterprise IT Departments (standardising IT operations and processes).

If we were to break this specialisation down even further, these would be: ITIL Service Strategy & Design to align IT services with business goals, ITIL Change Management ensuring smooth updates and system changes, and ITIL Service Operations to optimise help desk and IT support services.

Two online courses to get you started are ‘Foundations of ITIL’ on LinkedIn Learning, and ‘ITIL 4 Foundation Certification Course’ on Skillsoft Percipio.

4. Security Information and Event Management (SIEM)

SIEM solutions collect, analyse, and respond to security threats in real-time by monitoring logs, detecting anomalies, and automating incident responses. With cybersecurity threats on the rise, businesses need SIEM experts to protect critical systems and data.

In 2025, these are the top industries hiring SIEM specialists and its potential applications: Cybersecurity & IT Services (detecting and preventing attacks), Healthcare (protecting patient records from breaches), Government & Defence (securing sensitive information and critical infrastructure), and Retail & eCommerce (preventing fraud and cyberthreats).

Key specialisations within this skill area are SIEM Platform Management to configure and optimise SIEM tools like Splunk, IBM QRadar, and Microsoft Sentinel, Threat Intelligence & Analysis to identify security threats before they escalate, and Incident Response & Forensics to investigate and mitigate security breaches.

Online courses to get you started are ‘Introduction to SIEM’ on LinkedIn Learning and ‘SIEM Essentials’ on Skillsoft Percipio.

5. Microsoft Azure Machine Learning

Azure Machine Learning is a cloud-based AI and machine learning platform enabling businesses to build, deploy, and manage AI models at scale. With AI-driven automation and analytics becoming a core business function, expertise in Azure ML is highly valuable and sought-after.

In 2025, the top industries hiring for Azure Machine Learning experts and potential use-cases are: Finance & Banking (fraud detection, risk assessment), Healthcare (predictive analytics for patient diagnosis), Retail & eCommerce (personalised recommendations, inventory forecasting), and Manufacturing (automated quality control, process optimisation).

Specialisations within this area are AI Model Development, building and training predictive models using Azure ML, MLOps (Machine Learning Operations) to deploy and maintain ML models efficiently, and Deep Learning & Neural Networks to develop advanced AI applications.

Online courses to gain a better understanding are ‘Azure Machine Learning Fundamentals’ on LinkedIn Learning, and ‘Microsoft Certified: Azure AI Engineer Associate’ on Skillsoft Percipio.

Conclusion

To remain competitive in a market that is currently in an employer’s favour, it’s important to continue developing your skills and specialties. Whether you’re interested in data, cybersecurity, cloud computing, or IT service management, mastering any of these above skills can unlock new career opportunities.

If you’re part of our contractor community at Talent, reach out to your Contractor Care point of contact and ask how you can join our all-in-one contractor hub, ENGAGE. With free Skillsoft Percipio courses on offer, now is the best time to invest in your professional development.

Learn more about contracting through Talent here, or if you’re on the search for a new job head to our jobs board. If you’re curious about what tech professionals in these fields are earning across Australia and New Zealand, head to our Salary Guide filled with all the latest data.

As we progress through 2025, many professionals across Australia and New Zealand have noticed little to no change in salaries for their job titles compared to the previous year. Despite ongoing skills shortages in some industries and the increasing cost of living, wage growth has remained sluggish. So, what does this all mean?

Economic stability leading to salary correction

The rapid wage increases seen post-pandemic, particularly in high-demand industries, are now stabilising. Employers who once felt pressured to offer inflated salaries to attract talent are now adjusting to more sustainable pay structures.

As Katie Kemp, Senior Consultant at Talent Wellington, explains, “I would suggest that salaries are self-correcting. The pandemic and the perception of people scarcity has passed as the market turns to favour employers; so, rather than flattening, we are seeing salaries come to be more realistic and in line with the expectation of the role and a candidate’s experience.”

Wage growth slowing across the board

According to the Australian Bureau of Statistics, public sector wages rose by only 0.8% in the December quarter of 2024, a significant slowdown from previous years. Additionally, the Australian Industry Group forecasts wage growth to decline steadily from 4.1% to 3.9% by the end of 2025-2026.

However, as Edwin Foo, Principal Account Manager at Talent Perth shares, “I don’t foresee IT salaries decreasing despite the measured slow-down in annual wage growth. More notably rather, IT roles and positions that become less in demand during the course of 2025-2026 will likely remain stagnant, whilst in-demand skill sets within areas of Cybersecurity, Data Science, Artificial Intelligence and Machine Learning for example, will continue to trend upwards due to ongoing shortages, and so depending on the IT specialisation, the wage growth experienced will be relative.”

Inflation and interest rates are pressuring businesses

The Reserve Bank of Australia (RBA) expects inflation to return to the target range of 2-3% by 2025-2026. While this is positive for economic stability, many businesses are still dealing with higher operational costs, borrowing expenses, and cost-cutting measures, reducing their ability to offer significant pay raises.

Alan Dowdall, Practice Lead at Talent Sydney, shares, “While niche tech skills remain in high demand which calls for competitive rates, overall, salaries remain flat. Clients are consistently asking for salary and market insights to ensure they’re getting value for money, and that seems to be the attitude for most employers who need to stick to their budgets.”

Contracting market shifts & changing job preferences

Another factor impacting salary trends is the shift from contract hiring to permanent and fixed-term staffing. While contract roles were lucrative during the pandemic, fewer opportunities are currently available with many professionals accepting permanent roles with steadier and often lower salaries.

As Jacaleen Williams, Senior Consultant at Talent Wellington, explains, “There’s a mix in the market in terms of expectation and reality. Some areas saw salaries inflated/over-inflated around COVID times, and there is some flattening happening now. The decrease in contracting opportunities has seen people need to switch back to permanent or fixed-term positions.”

So, what can professionals do?

Edwin states that “the lesson here, is for IT candidates to remain on the front foot when it comes to upskilling themselves, and pivoting pathways if need be, in order to ensure that they are future-proofing their careers and maximising the salaries that they earn.”

If you’re facing salary stagnation, consider:

• Upskilling in in-demand areas like data analytics, cybersecurity, and cloud computing
• Negotiating perks like bonuses, additional leave, or professional development funding
• Explore new opportunities where demand for your skill set remains high

While large salary increases may not be as common as before, the key to career growth in 2025 is adaptability. Being equipped with the right skills and market knowledge will put you in the best position for future pay rises.

For more of the latest information on the hiring market, top salaries, skills in demand, and more, head to our More than Money Salary Guide 2025.

Talent has been awarded the 2025 certification by Great Place To Work. Talent was recognised by Great Place To Work for prioritising an exceptional employee experience and creating a workplace culture to match.

Talent’s Great Place To Work employee engagement rate is 94% which is considered world-class. This is in comparison to 56% of employees at a typical company in Australia.

Talent’s continued pursuit to create a world leading culture saw increased engagement, improved wellbeing, and a drive for diversity and inclusion. This resulted in a better experience for contractors, candidates, and customers. As an award winner, Talent ranks among the most elite organisations around the globe.

Talent Global CEO, Mark Nielsen, commented on what this certification means to the company. “Receiving this recognition is an incredibly proud moment for the business. Seeing Talent’s name next to other inspiring companies is very humbling. Culture is not just a word that is thrown around at Talent, we walk the talk and always continue to strive for better. This certification is recognition that we excelled at this. Great Place to Work’s purpose is to prioritise exceptional employee experience which aligns to Talent’s vision, mission and values.”

Jenny Le, Head of People & Culture, Talent, is passionate about the sensational work culture that Talent have fostered. “We are incredibly proud to be certified as a Great Place to Work. This is a huge testament to every single person at Talent who contributes to making it a place where our people feel heard, valued and respected to bring their whole selves to work. Our culture and the exceptional people we have in this company truly make up Talent’s DNA, which is the foundation of any great business. Our culture is built for our people, by our people – and that’s what allows us to embody our #OneTeam ethos every day. While our results are great, our commitment is even greater to ensure that we continue to listen to our people and strive for better in everything that we do.”

Great Place To Work Certification recognises employers who create an outstanding employee experience. It involves a two-step process that consists of surveying your employees and completing a short questionnaire about your workplace. The scores are determined based on the feedback received from employees and independent analysis. This certification helps job seekers identify companies that genuinely offer a great company culture. It also gives employers a recruiting advantage by providing a globally recognized and research-backed verification of their commitment towards providing a great employee experience.

Salaries across the board are steadying out as the hiring market continues to favour employers as revealed in Talent’s ‘More Than Money Salary Guide 2025’ which was released today. Tech and digital salaries continue to steady out but remain strong for key skillsets such as cybersecurity and AI. The report features key salaries, roles and skills that are in demand for the Australian market. Please find the report HERE.

The report features salaries and contract rates for key tech positions in 2025, the most in-demand tech skills for 2025, market insights from Talent’s Managing Director team and experienced recruiters, as well as hiring trends and predictions across the regions in which Talent operates across ANZ and the US. Further insights include the representation of women within the tech and IT sector.

Key findings include:

• Cyber Security and Data experts remain to be high in demand across ANZ, with salaries continuing to sneak upwards but there have been no significant increases across the board.
• Contract rates have mainly decreased, as companies move away from contract hiring and are prioritising FT and permanent.
• According to Talent data of over 1,900 workers, when asked for their preference in working models, a majority of 49% stated they preferred fully remote work, closely followed by 45% who preferred a hybrid model.
• A Talent poll of over 800 permanent workers revealed a significant 54% are open to making the switch to contracting in 2025 and two-thirds of those open to contracting (66%) are currently actively looking for a contract role. The makeup of Australia’s workforce is shifting, with 7.5% of Australians working as independent contractors.
• With L&D opportunities coming in many forms for different businesses, a Talent survey discovered that Conferences & Workshops are highly valued (37%), followed by In-House Training Programs (28%). Online Learning Subscriptions came in third at 20%, lastly followed by Tuition Reimbursement at only 15%.

Demand remains high for the following skills:

1. Artificial Intelligence
2. Cybersecurity
3. Data Analysis
4. Cloud Architecture
5. Microsoft Systems

Top salaries* for 2025 vs 2024 are as follows:

2025:

1. Enterprise Architect – $231k
2. Big Data Architect – $220k
3. Program Manager – $210k
4. Cloud Architect – $209k
5. Engineering Manager – $208k
6. SOC Manager – $205k
7. Cybersecurity Manager – $202k
8. Applications Solution Architect – $200k
9. Cybersecurity Architect – $200k
10. Technical Salesforce Architect – $200k

2024:

1. Enterprise Architect – $234k
2. Cybersecurity Architect – $222k
3. Cloud Architect – $212k
4. Programme Manager – $210k
5. SOC Manager – $205k
6. Cybersecurity Manager – $202k
7. Business Intelligence Architect – $195k
8. Infrastructure Architect – $190k
9. Solutions Architect – $189k
10. Senior Data Scientist – $186k

*Excluding C-Suite roles. Permanent salaries are exclusive of superannuation.

Matthew Munson, Talent Managing Director NSW, weighed in, “We anticipate that the market will start to pick up again. Looking at top skills right now, cybersecurity is in high demand. As Australia is a wealthy country and a fast adopter of new technologies, it’s an attractive target for cyber criminals. The government wants Australia to be “a world leader” in cybersecurity by 2030. State government agencies will have to scale up to address (and get in front of), an increase in frequency and complexity of attacks, and as such, cybersecurity will be an area to watch out for over the next few years.”

Simon Yeung, Talent Managing Director VIC, said, “The IT hiring market for 2025 will improve on 2024, which slumped mid-year and has been increasing since then. Many enterprise and mid-large organisations will pursue programs to achieve a data governance maturity uplift, as high-quality high-volume data is increasingly a competitive advantage. Cybersecurity challenges will increase as organisations face increased attacks that are partly AI-driven, while they balance increased demand for IT resources for AI and data.”

* Figures are based on data provided to Talent from our clients, with additional sources cited.

We are hosting an ENGAGE-exclusive webinar event where we’ll be sharing our hiring market updates for Australia and New Zealand. Our experts will cover their predictions for 2025, the hottest skills in demand, and how to get ahead of the competition in the current market. There will be a Q&A at the end where you’ll be able to submit your thoughts and questions.

Session information

Date: Thursday, 13th February

Time: 12:00pm AEDT // 2:00pm NZDT

Where: Online via Zoom

Your Talent experts

JP Browne

JP is a Practice Lead from Auckland who has worked in tech recruitment for 20 years. JP specialises in recruiting for C-Suite and leadership teams as well as project transformation.

Music is a big passion of JP’s and his vinyls have pride of place in his office. When not listening to music, he’s learning the piano and dreams of taking up the bagpipes again, and when the weather allows he’ll be doing a very average job of playing golf.

Scarlett Cooke

Scarlett is an Account Director in Sydney, who has worked with Talent for 7 years. Scarlett supports businesses in NSW covering a range of sectors which include technology, transformation, project services, engineering, and corporate services.

When she can, Scarlett loves to travel and is considered amongst her friend group as the go-to for tips on holiday destinations.

Joseph Petrovski

Joseph is an Account Executive in Melbourne who has worked with Talent for 7 years. Joseph specialises in delivering for the renewables, construction, utilities & energy industries.

Joe is a passionate music fan and can play quite a few instruments. His favourite one to play is the didgeridoo.

To find out more about contracting at Talent, click here.

While the economy has made strong rebounds in growth following the COVID-19 pandemic lockdowns, it would be best to assume that change is the new norm. With New Zealand’s market experiencing a continued slowdown and businesses tightening their budgets, it’s easy for leaders to prioritise short-term solutions to solve immediate concerns over thinking about the long-term growth of their organisation instead.

Understanding the long-term perspective

As a business leader, it’s important to maintain a clear focus on long-term strategic objectives and avoid getting lost in the day-to-day operations. This focused approach not only creates opportunities for growth during challenging times but also positions businesses with strong foundations to thrive, while weaker competitors may struggle.

Experienced leader Michelene Hart, Managing Partner and Co-Founder of Yorkway Private, underscores the importance of always keeping an eye on the ‘light on the hill’ – otherwise known as the strategic objectives for the longer term – and emphasises how the leadership team plays a vital role in providing strategic direction, especially during uncertain times. Hart advises that regularly reviewing the business’ long-term strategy and adapting it to external factors is essential for leaders to ensure that the company and their teams stay on course.

“Companies who have done the right things to survive challenging times will have the opportunity to thrive,” Hart says, suggesting that the board and C-suite set time aside to explore opportunities for mergers, acquisitions, or introducing new products and services that fit the current market conditions. The ultimate goal is to position the business for success when the market inevitably shifts, and a proactive approach will yield positive results that reflect well on your leadership.

Risks of short-term solutions

We get it, these short-term solutions will bring immediate results to keep you above the line – but what are the long-term drawbacks of immediate ‘solutions’ like minimising teams and scaling back on engagement efforts?

• Decreased employee engagement and motivation, leading to lower productivity and innovation
• Loss of valuable interpersonal relationships and collaborative efforts that contribute to the workplace environment, hindering the achievement of wider business goals
• Increased time, efforts, and associated costs of recruiting and onboarding new team members

Balancing short-term needs with long-term goals

So, how do we achieve the best of both – keeping an eye on the big picture while solving immediate concerns? Let’s think of key focus areas and their low budget solutions:

1. Communication: Set regular meetings with your stakeholders, relay any challenges and limitations with honesty, share both wins and losses, and collaborate between teams to find creative solutions.
2. Optimisation: Leverage AI and automation to handle decision-making processes and offload administrative tasks, e.g. automated invoice approval and payment processing can reduce delays and errors for finance teams and programmed employee onboarding can help streamline and free up time for HR teams.
3. Employee engagement: Autonomous working environments can help employees feel trusted and empowered, continuous feedback through open lines of communication such as surveys to voice concerns or opinions and recognising individual and team wins is an effective way to boost morale.
4. Creative L&D: Consider internal opportunities; start small and prioritise any skill gaps. Encourage cross-training between teams, shared learning sessions or working groups, and mentorship opportunities between senior and junior employees.

Getting ahead of the curve

Ask yourself, are there contingency plans in place for future scenarios? Bridget O’Toole, a former Chief Operating Officer, says, “As early as possible, it’s key to consider scenario testing.”  From thinking about changing customer demands to sudden reallocation of resources; O’Toole urges leaders to consider all possible “what ifs” with clear and precise strategies to help anticipate and respond to potential challenges as they arise.

To mitigate any losses and ensure the business’ resilience and continued long-term growth, O’Toole advises leaders to consider “diversity of clients, financial reporting, competitor analysis, and diversity of products on offer.” Understanding market trends and communicating the financial health of your company will help all leaders make informed decisions about resource allocation and strategic initiatives, increase stakeholder confidence, manage risk, and evaluate company performance, and adhere to financial reporting regulations. These considerations will serve as a compass for you to navigate a turbulent economy.

By thinking ahead and creatively using the resources you have at your disposal, navigating budget constraints while maintaining a long-term perspective is possible. Reach out to our team to discuss how we can help you chart a course for business success.

For a more detailed guide on what actions you can take during uncertain times, we’ve gathered insights from 26 seasoned business leaders across industries who’ve weathered the storm before, from Board and C-Suite to Heads and Managers. Find out their key strategies for leading teams and businesses through periods of uncertainty here.