South Australia’s tech workforce to double, adding AUD $5 billion

South Australia's technology workforce is forecast to double over the next decade, providing a significant economic boost and creating thousands of new high-skill jobs for the state.

The recently released 2025 ACS Australia's Digital Pulse report indicates that South Australia's technology workforce has already contributed AUD $5 billion in value to the state economy in the past year and now employs more than 40,800 individuals.

According to projections in the report, by 2035 the number of technology professionals in South Australia is expected to reach approximately 89,400, representing an increase of 49,000 workers compared to present figures. This anticipated growth underscores South Australia's rising prominence in Australia's digital sector, with strengths identified in industries such as defence, advanced manufacturing, renewable energy, and artificial intelligence.

Sector outlook

Assistant Minister for AI and Digital Economy Michael Brown MP said, "The future of South Australia's technology sector is now brighter than ever. The confidence that industry places in our state has led to this surge in investment, driven further by our state's key strengths in emerging technologies such as Artificial Intelligence, renewables, and defence & cyber. We look forward to advocating alongside ACS for a strong technology sector."

Engagement with digital skills development is already high among South Australians, with 93% of technology professionals and 62% of workers in other sectors actively maintaining or improving their digital abilities. The main areas of upskilling include artificial intelligence and machine learning (58%), software development (53%), and cybersecurity (47%).

However, survey participants also highlighted persistent skills gaps, especially in cybersecurity (44%), virtual and augmented reality (43%), and data analytics and visualisation (38%).

Challenges to upskilling

Despite the broad interest in improving digital skills, perceived barriers remain. Respondents noted time pressures due to work (47%), the high cost of training (44%), and other personal commitments (31%) as leading challenges to further skill development.

"The fact that South Australia's tech workforce is on track to almost double within a decade points to a genuine boom in our digital economy. That growth means thousands of new, high-skill, high-paying jobs right here at home.

"We're already seeing the foundations being laid, with the recent agreement between our state government and Rolls-Royce to deliver AUKUS skills, and with local innovators like Team Cherry captivating the world through Hollow Knight: Silksong.

"ACS is growing South Australia's tech workforce by accrediting ICT programs, expanding training opportunities, and partnering with universities and employers to equip students and professionals with in-demand skills. If we seize this moment and continue building digital capability across the workforce, technology can become one of South Australia's most powerful economic engines," said Tapan Dave, Chair of the ACS South Australia Branch.

National context

At the national level, the Digital Pulse 2025 report notes that the technology sector now contributes AUD $134 billion to the Australian economy, employing more than one million people in technology roles. It warns, though, that significant skills shortages in areas such as artificial intelligence, cybersecurity, and data analytics still hinder business growth and productivity across the country.

According to the report, closing these gaps could unlock an additional AUD $25 billion for Australia's economy by 2035. Currently, 150,000 businesses are grappling with shortages in digital capabilities, which has led to lost revenue and heightened exposure to cyber risks.

The report, drawing on surveys of 300 C-suite executives and 1,200 workers, found that more than half (51%) of participants lacked at least one digital skill necessary for their current roles, particularly in the use of artificial intelligence, cybersecurity, and data analytics. University IT completions have increased by 11%, but half of graduates said their qualifications were not directly relevant to their roles.

Industry certifications and vocational education pathways are recognised as reliable routes to digital skills, though 88% of technology job ads continue to require university degrees. Among business leaders, 45% reported that they or their teams lacked at least one essential digital capability.

Improved use of technology was found to increase business effectiveness by up to 30%, while addressing cybersecurity shortfalls offers the potential to reduce the AUD $63 billion annual cost of cyberattacks.

ACS perspective

"Digital skills are the foundation of Australia's economic future," said ACS Chief Executive Officer Josh Griggs.

He continued, "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."

Policy actions

To address the digital skills gap and foster economic and technological development, ACS has outlined ten recommended actions, including the creation of a national sovereign AI strategy, a renewed focus on innovation, government co-investment in business scaleups (with a view to increased support for women and First Nations founders), and incentives for business investment in research and development, particularly in artificial intelligence.

Further recommendations focus on digital skills assessments for executives, promotion of entry-level cybersecurity pathways, establishing a national technology skills framework, recognition of alternative qualifications, support for mid-career worker transitions, and the development of sovereign AI and digital capabilities for government services.

The ACS Digital Pulse report serves as a resource for policymakers, industry, and educators as they plan for the future of Australia's digital economy.