Australia’s cyber security workforce showed minimal growth amid rapid AI-driven change. The 2025/26 Cyber Wrap report revealed a workforce expansion of only 0.2 per cent over the last financial year. Redundancies hit particularly in larger consulting firms, signalling a stagnation after years of rapid expansion.
Flat Growth in Cybersecurity Sector
The cybersecurity industry in Australia has entered a period of transition. Previously, organisations focused heavily on expanding their cybersecurity teams. Now, many are stabilising existing capabilities and emphasising cost control. New large-scale hiring is largely on pause as a result.
Early-career job opportunities face pressure from AI and automation. Tasks in entry-level Security Operations Centre roles are increasingly automated. This reduces traditional pathways into the sector, squeezing out many entry-level positions.
The cybersecurity market growth, skills shortage statistics, and strategies to address the cybersecurity workforce gap
AI Integration Reshapes Cyber Roles
AI-powered automation and detection tools have become widespread in cybersecurity functions. Governance, risk and compliance roles now demand AI skills alongside technical expertise. Penetration testing also integrates AI tools, shifting the required skill sets.
Demand for cyber specialists grows despite the stagnation in workforce size. However, attracting and recruiting these workers remains challenging. Misconceptions about job requirements persist and limit candidate suitability in the eyes of employers.
Government Workforce Plans Highlight Challenges
The Australian Public Service (APS) released a Data, Digital and Cyber Workforce Plan 2025-30. It outlines a coordinated approach to build a sustainable and capable cyber workforce. The plan focuses on attracting, recruiting, and retaining talent and uplifting technical capabilities.
With an estimated shortfall of 3000 cybersecurity professionals by 2026, Australians face a growing skills gap. Over 70 per cent of APS agencies report critical shortages in data skills. Legacy technology reliance and an aging digital workforce compound recruitment difficulties.
The APS plan calls for modernised recruitment, career paths development, and improved capability planning. It aims to build a specialist cohort identified and retained over the medium to long term. Agencies must use data insights for smarter workforce decisions.
Factors that could encourage talent to join the cybersecurity industry
Industry Insights Reflect Market Pressure
The Australian cybersecurity market 2025 is highly pressured with potential. Changes in regulation and an increasing cyber threat increase the pressure on professionals. Nevertheless, employment in the 2025 federal election was reduced, especially in the government sectors.
Following the election, confidence returned with renewed demand for governance, threat intelligence, and technical architecture roles. Yet the overall sector growth remains slow, and some companies continue to reduce roles impacted by AI automation.
Cybersecurity skills gap statistics
Broader AI Impact on the Australian Workforce
AI’s influence extends beyond cybersecurity. A 2024 survey indicated 38 per cent of Australian companies plan employee replacements by AI in 2025. Conversely, 82 per cent expect workforce expansions, highlighting a complex job market.
Employers increasingly value AI skills, with 87 per cent favouring candidates proficient in AI. Workers with AI expertise enjoy higher job security and wage premiums. AI tools have boosted productivity, allowing employees to manage heavier workloads.
Also Read: Nicola Olyslagers Claims Gold at the 2025 World Athletics Championships High Jump
Conclusion: Workforce Adaptation Required
The current state of Australia’s cyber workforce is stagnant in an AI-driven job marketplace. The industry has to strike a balance between the current demand and the new automation issues. It is strategic workforce planning which is concerned with recruitment and skill development.
There will be a need to have cooperation between the government and industry to overcome important shortage of skills. Constant investment in AI skills and conventional cyber expertise will make the workforce future-proof. This will see Australia fulfil its cybersecurity aspirations by 2030.
Such an all-inclusive strategy is expected to keep Australia at the forefront of the global cybersecurity systems and adjust to the emerging reality of AI-powered technology and changed labour market dynamics.
