The tech job market and employment landscape in Melbourne, and to some extent, Australia at large, has undergone a significant transformation in the last year, reshaping the way businesses approach recruitment. The aftermath of the COVID-19 pandemic, marked by a surge in salary and rates, has now stabilised, paving the way for a more balanced and resilient job market.

The unprecedented events of the pandemic triggered a boom in tech jobs and a candidate shortage, a trend that extended across global stage. In 2023, the United States experienced a shift in the market, with major tech giants like Salesforce, Google,and Amazon implementing labour cuts, sending ripples through the tech market worldwide.

Employers responded by reclaiming the narrative, not only in terms of salary negotiations but also in shaping the recruitment process and defining working arrangements. This included decisions on work from home policies and the structuring of hybrid work weeks. While the pandemic initially compelled employees to work from home, there is now a palpable shift towards a return to the office. Employers are eager to resurrect office culture and foster an environment conducive to learning and development. As clients pivot towards a return to the office, they are also redefining their approach to attract top talent. Departing from business-as-usual, companies that are engaging in tech or transformation projects are positioned as employers of choice.

Candidates, on the other hand, are seeking more than just a job; they crave sustainable environments with ample training and development opportunities. Flexibility within the work week has become a non-negotiable for many.

Certain sectors have emerged as pillars of strength in the current job market, notably defence, education, government, retail, and energy.

Being Positioned as a Tech Employer of Choice

For clients aiming to stand out in the competitive job market, fostering a collaborative environment is paramount. A crucial shift in focus towards learning and development is evident, with employees increasingly seeking access to cutting-edge technology such as AI, data analytics, and involvement in innovative projects.

Navigating the Tech Landscape

Success in the current tech landscape requires candidates to be clear about their preferences and expectations. When it comes to flexibility, candidates must articulate what it specifically means for them, understanding the mutual give-and-take necessary for a successful flexible work arrangement.

Candidate upskilling within their tech domain is a strategic move to strengthen their position in the job market. Aligning salary and rate expectations with the current market temperature is equally vital, as figures that soared during the height of the pandemic have now stabilised or, in some sectors, even declined.

The 2024 Melbourne Tech Market

Looking ahead for the year, we observe green shoots of growth, particularly within contract roles. However, a softening is evident in permanent opportunities. Key sectors to monitor include defence, education, and retail, with financial services emerging as a rising player. The tech industry is poised for positive growth, signalling opportunities for both clients and candidates willing to adapt to the evolving landscape.

Melbourne’s job market in 2024 is set to be a dynamic arena where adaptability, collaboration, and a commitment to staying at the forefront of technological advancements are the keys to success for both employers and job seekers. If you’re looking to partner with a specialist tech recruitment team who have their finger on the pulse and extensive experience in the market, chat to us!