VIC Technology Market Report 2026
Victoria’s tech market has held steady through 2025. Hiring has levelled out after several busy years, with the most significant movement coming from government reductions rather than broad private-sector layoffs.
This report explains what’s changed and what it means for hiring in Victoria in 2026.
Hiring has levelled
After several years of strong activity, technology hiring in Victoria has stabilised without the large-scale job losses seen elsewhere.
What’s Shaping the VIC Tech Market
Candidate movement increases
Reductions across government and projects have released more experienced professionals into the market, increasing overall candidate availability.
Specialist demand holds
Demand continues for experienced professionals in AI, cyber security, cloud and data, despite more measured hiring conditions overall.
Victoria’s tech market remains resilient despite targeted government reductions.
VIC tech market
3,000
Victorian public service roles targeted for reduction
The most notable workforce changes in Victoria have come from government, with up to 3,000 public service roles being reduced to pre-pandemic levels. These changes have increased candidate availability across permanent and contract roles, while private-sector hiring has remained relatively stable.
Low
National and global tech layoffs have had limited direct impact in Victoria
Limited local impact
4
AI, cyber security, cloud and data remain the most active hiring areas
Skills in demand
188
AI companies now based in Melbourne, the largest AI cluster in Australia
AI concentration
VIC Tech Market Report 2026. What it means for hiring, and what’s behind the shift.
Victoria’s tech market is becoming steadier and more selective. Public-sector cuts have increased candidate availability, while private-sector demand continues to focus on capability rather than headcount growth. This report helps employers understand where supply has shifted, where demand remains firm, and how to plan hiring decisions in 2026.
Hiring strategies that worked during peak demand are less effective in a more selective market. Employers need clearer role definition, realistic timelines, and a stronger understanding of where talent is actually available.
What this means for employers
The report combines labour-market data with Launch’s on-the-ground hiring activity across NSW, covering restructuring impacts, skill shortages, contracting trends, and where demand is expected to hold through 2026.
What the report covers
