The Software Engineer of 2027: What’s Changing in the Job?

November 5, 2026


Q1 FY27 Australian Tech Hiring Snapshot: Where Demand Moved from July to September 2026

Australia's technology recruitment market is changing. While job vacancies are declining and applications are increasing, demand for specialised skills in artificial   intelligence (AI), machine learning, and cybersecurity remains strong. As businesses navigate the first quarter of FY27 (July–September 2026), the latest employment data reveals a hiring environment that is becoming increasingly competitive for jobseekers while remaining challenging for employers seeking highly specialised technology professionals.


At Firesoft People, we closely monitor market trends to help Australian organisations make informed hiring decisions.

Here's what the latest numbers reveal about Australia's technology hiring landscape and what employers should consider as they plan their workforce strategies.

1. Fewer Technology Vacancies, More Job Applications

One of the most significant trends emerging from Q1 FY27 is the growing imbalance between available roles and job applications.

According to Australian Bureau of Statistics (ABS) job vacancy data, vacancies across the information media and telecommunications sector declined from approximately 3,600 in May 2026 to 3,000 in August 2026.

This represents a decrease of approximately 16.7% over three months.

Meanwhile, SEEK's July 2026 Employment Dashboard reported that applications per job advertisement reached a record high.

What does this mean for employers?

At first glance, an increase in applications might appear to make recruitment easier. However, a larger candidate pool does not necessarily translate into more qualified candidates.

Employers may receive significantly more applications while still struggling to identify professionals with the technical expertise, industry experience, and specialist capabilities required for critical positions.

This creates several recruitment challenges:

  • Higher application volumes: Recruitment teams may need to review more candidates for each vacancy.
  • Greater screening requirements: Identifying genuinely qualified candidates becomes increasingly important.
  • Specialist talent shortages: Highly skilled professionals may remain difficult to secure despite broader competition for jobs.
  • Longer selection processes: Without clear hiring criteria, additional applications can create unnecessary delays.

The key takeaway is simple: more applicants do not automatically mean better hiring outcomes.

Organisations need clearly defined job requirements, effective screening processes, and a focused recruitment strategy to identify the right talent.

2. AI Skills Are Becoming Essential Across Technology Roles

Artificial intelligence is no longer a capability reserved for specialist research teams or dedicated AI departments.

It is increasingly becoming part of the everyday requirements for technology professionals.

According to SEEK's July 2026 Employment Dashboard, 13.5% of ICT job advertisements requested AI-related skills, representing the highest proportion among industries.

This highlights the growing importance of AI capabilities within Australia's technology workforce.

Why are employers prioritising AI skills?

Businesses are exploring how AI can improve productivity, automate processes, support decision-making, and create new commercial opportunities.

As a result, organisations are looking for professionals who can help translate AI initiatives into practical business outcomes.

These capabilities may include:

  • AI and machine learning development
  • Data engineering and analytics
  • AI solution architecture
  • AI integration into existing business systems
  • Automation and process optimisation
  • Responsible AI implementation and governance

Importantly, employers should distinguish between roles requiring advanced AI engineering expertise and positions where practical knowledge of AI tools is sufficient.

Defining the actual business problem and the level of AI capability required can help organisations avoid unnecessarily narrowing their candidate pool.

3. AI and Cybersecurity Remain Critical Skills Shortages

Despite increasing job applications, some of the most important technology capabilities remain difficult for employers to secure.

The Hays IT Contractor Rates Guide FY26/27 identifies two particularly significant areas of specialist skills shortages:

AI and Machine Learning — 28%

Cybersecurity — 26%

These figures represent the proportions of employers identifying these areas among their most acute skills shortages.

Why do these shortages matter?

AI and cybersecurity are increasingly important to business operations, digital transformation, and long-term competitiveness.

For organisations investing in AI, specialist expertise can be essential for designing, implementing, and maintaining reliable solutions.

Cybersecurity professionals play an equally important role in protecting business systems, managing digital risks, and supporting secure technology adoption.

As businesses introduce new technologies, their requirements for both AI and cybersecurity capabilities may become more complex.

What should businesses do?

Employers should consider a combination of strategies to address specialist skills gaps.

Prioritise critical capabilities. Identify which technical skills are essential for delivering business objectives and which can be developed internally.

Invest in workforce development. Upskilling existing employees can complement external recruitment and help businesses build longer-term capability.

Consider specialist contractors. Contract professionals may provide access to technical expertise for specific projects or transformation initiatives.

Streamline hiring decisions. A lengthy recruitment process can create unnecessary obstacles when trying to secure highly specialised professionals.

The objective should not simply be to fill vacancies, but to build the capabilities needed to support sustainable business growth.

4. What Are Australian Businesses Paying for AI Contractors?

As demand for AI expertise continues, organisations are increasingly considering specialist contractors to support technology projects.

The Hays IT Contractor Rates Guide FY26/27 provides insight into the upper end of daily rates for selected AI roles.


AI Specialist Role                                                                        Daily  Contract Rate (Up To)

AI Engineer                                                                     $1,360 per day

AI Solutions Architect                                                   $1,640 per day

Chief AI Officer                                                               $2,300 per day


Figures are reported in the source material as daily rates and represent upper-end benchmarks rather than standard rates for every engagement.


The same source indicates that 60% of employers use contractors to access specialist skills.

Why are companies turning to contractors?

Contracting can offer businesses greater flexibility when specialist expertise is required for a defined period.

For example, an organisation implementing an AI solution may need an experienced AI Solutions Architect during the design and deployment stages without necessarily requiring that capability as a permanent position.

Contract professionals can help businesses:

  • Access specialised technical knowledge
  • Support project-based delivery
  • Address immediate capability gaps
  • Scale technical resources according to project requirements
  • Reduce reliance on lengthy permanent recruitment processes

However, contractor costs should be assessed against project scope, duration, expected outcomes, and the level of expertise required.

The highest daily rate does not necessarily indicate the best fit for every organisation.

A clearly defined project brief and realistic expectations are essential when engaging specialist contractors.

5. What the Q1 FY27 Hiring Trends Mean for Australian Employers

The latest figures highlight an important distinction within the technology recruitment market.

The overall number of available roles may be declining, but demand for highly specialised skills remains significant.

For employers, this means recruitment strategies need to become more targeted and efficient.

Focus on quality rather than application volume

Receiving hundreds of applications is not necessarily an advantage if few candidates meet the technical requirements.

Employers should establish clear selection criteria that distinguish essential capabilities from desirable experience.

Develop clearer job briefs

Before advertising a position, businesses should define the outcomes they expect the successful candidate to deliver.

For example, rather than simply requesting an AI specialist, employers should clarify whether they need someone to build machine learning models, design AI infrastructure, implement an existing solution, or lead an organisation-wide AI strategy.

A precise brief helps attract more relevant candidates and supports better recruitment decisions.

Move quickly when the right candidate appears

Even when overall application volumes are high, experienced AI, cybersecurity, and other specialist technology professionals may remain difficult to secure.

Unnecessary delays between interviews, feedback, and offers can undermine recruitment efforts.

A structured and efficient hiring process is therefore increasingly valuable.

Balance permanent and contract hiring

Not every technical requirement needs to be addressed through permanent recruitment.

Businesses should evaluate whether a role supports an ongoing operational need or a time-limited project.

A combination of permanent employees, contractors, and internal development may provide the flexibility required to respond to changing technology priorities.

6. Looking Ahead: Technology Hiring Beyond Q1 FY27

The July–September 2026 data offers several important signals for businesses planning their future technology workforce.

The first is that higher application volumes should not be mistaken for an abundance of specialist talent.

The second is that AI and cybersecurity capabilities remain important areas of workforce demand.

The third is that organisations need to consider how they access specialist expertise, particularly when permanent recruitment may not align with project timelines or immediate business requirements.

Looking ahead, businesses that clearly define their technical requirements, understand relevant market rates, and maintain efficient recruitment processes will be better positioned to respond to changing hiring conditions.

Ultimately, successful technology recruitment is not about attracting the largest number of applicants.

It is about finding the right expertise, at the right time, to deliver meaningful business outcomes.

How Firesoft People Can Help

At Firesoft People, we understand that hiring technology professionals requires more than matching keywords on a CV.

Businesses need people who bring the right technical capabilities, relevant experience, and an understanding of the challenges they are being hired to solve.

Whether your organisation is looking for specialist AI expertise, cybersecurity professionals, experienced technology contractors, or permanent IT talent, our team can help you navigate the recruitment market and identify suitable candidates.

We work with Australian businesses to understand their workforce requirements and connect them with professionals who can support their technology goals.


Want the Full Picture?

For deeper insights into Australia's technology recruitment landscape, including hiring trends and specialist talent considerations, request a copy of our CEO Insights Report.


Contact Danny Normington

CEO, Firesoft People

Email: dannynormington@firesoftpeople.com

Phone: 0406 837 638

Firesoft People — Connecting businesses with the technology talent they need.


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