New data shows New South Wales' technology workforce is projected to grow substantially, with more than 562,000 new jobs expected by 2035, according to the 2025 ACS Australia's Digital Pulse report.
The technology sector in NSW contributed AUD $54 billion to the state's economy in the past twelve months and now employs more than 371,300 residents. The report predicts that by 2035, the number of tech professionals in the state will exceed 930,000, reinforcing the sector's prominence as a driver of economic and employment growth.
Analysis from the report places Sydney at the centre of Australia's technology landscape, hosting the largest concentration of digital talent nationally. NSW continues to build industry strengths in financial services, fintech, creative sectors, health technologies, and advanced digital infrastructure.
Upskilling momentum
The report found that 92% of technology workers in NSW are engaged in actively developing or maintaining their skills. Among workers from other sectors, 79% are also upskilling or reskilling. Skills most in demand for further development include cybersecurity (49%), AI and machine learning (48%), and data analytics and visualisation (39%).
Despite high engagement in skills development, key areas of capability continue to lag. Workers identified gaps in robotic process automation (44%), AI and machine learning (43%), as well as virtual and augmented reality (40%).
Barriers to training
Persistent barriers are limiting workers' ability to retrain or upskill. NSW professionals cite time pressures from work (45%) as the predominant obstacle, followed by the cost of training (39%) and personal commitments (34%).
NSW is at the forefront of the nation's digital transformation. As AI, automation and cybersecurity reshape work, reskilling must become more practical, affordable, and accessible.
ACS is committed to supporting professionals at every career stage so they can adapt and thrive in the global digital economy, said ACS NSW Branch Chair Cindy Chung MACS CP.
National technology snapshot
On a national scale, the technology sector now adds AUD $134 billion to Australia's economy and employs more than 1 million people. However, significant skills gaps in AI, cybersecurity and data analytics are cited as barriers to continued growth and productivity, according to the report.
The ACS analysis estimates that closing the technology skills gap could generate a further AUD $25 billion in economic value by 2035. However, at present 150,000 businesses are experiencing critical or severe digital capability shortages, which have led to lost revenue and increased exposure to cyber risks.
Findings from digital workforce survey
Data drawn from a survey of 300 C-suite executives and 1,200 workers found that 51% of Australian workers lack at least one digital skill required for their role. Gaps are most pronounced in areas related to AI, cybersecurity, and data analytics.
While university IT completions have increased by 11%, half of technology graduates do not believe their formal qualifications are relevant for their existing roles. Alternative pathways, including industry certifications and vocational education and training (VET), are identified as highly trusted means of skills development. Despite this, 88% of technology job advertisements still require university degrees.
Further, 45% of C-suite leaders report only basic digital capability in critical areas such as reading digital transformation business cases and understanding data usage within businesses. According to the OECD, businesses that address their skills gaps can achieve up to 30% more effective use of technology.
The report also highlights cyberattacks as a significant cost to the Australian economy, at an estimated AUD $63 billion annually. Strengthening national cyber skills is presented as an opportunity to mitigate these losses.
Digital skills are the foundation of Australia's economic future, said ACS Chief Executive Officer Josh Griggs.
To compete globally, we need to ensure every worker, from frontline staff to the executive suite, has the capabilities to work with and lead digital transformation. If we close these gaps, Australia stands to unlock billions in economic growth, improve cyber resilience, and position itself as a global tech leader.
Our plan is not just about fixing today's problems; it is about creating a future-ready nation, Mr Griggs said.
Recommendations for the future
The report outlines ten key recommendations to develop Australia's digital skills pipeline. These include a national sovereign AI strategy, expanded R&D initiatives, government co-investments in startups and scaleups, and industry actions to create more entry-level opportunities, especially for cybersecurity professions.
The ACS also advocates for greater recognition of VET and industry certification pathways, the implementation of mid-career reskilling schemes, and the development of a sovereign system layer to enhance government digital capability and ensure data security.
Policymakers, businesses, and educational bodies are identified as key audiences for the report, which aims to support decision-making as the Australian economy becomes increasingly reliant on digital skills and infrastructure.
https://securitybrief.com.au/story/nsw-tech-sector-to-add-562-000-jobs-reach-aud-54bn-by-2035
