Investment in tech remains resilient, despite recent slowdown

Nearly 100,000 global employees are expected to be affected by layoffs announced by Twitter, Salesforce, Amazon, Microsoft, Meta, Alphabet, and Atlassian in recent months^[1]. Amidst the volatility, Jairus Ashworth, Partner – Human Capital Solutions at Aon shared his insights on what is to come for the tech sector in terms of employment, wages and salaries. Is this the death of tech or will they remain resilient?

“Despite recent layoffs, it is important to note that overall headcount in the tech sector is still higher than 12 months ago.” said Jairus.

Aon’s Australian Benefits Report recently reported Tech companies spent 6.5% more on salaries last year than in the previous year. They are also budgeting for a 4% pay increase this year which is well above general wage growth of 3%^[2].

“While the sector is temporarily shrinking due to layoffs that have happened in a short period of time, when you take the incredible growth of the last 24 months into account, it is more of a slowdown back to a regular growth pace. For every layoff we hear about, let’s remember there is a growing tech company like Wisetech who are continuing to hire more people in Tech.” Jairus continued.

Aon has also seen growth in employee benefits, with many organisations offering new health and welfare benefits to improve the resilience of their workforce.

Tech talent hiring is being driven by the IT departments of banks, mining companies and government as they progressively invest in digital transformation and demand for cybersecurity professionals.

Aon’s Radford Global Compensation Database (Technology Module) has found 20% more professionals working in IT services compared to last year, with an average of 5-10% increase in salary – some as high as 20% or more^[3].

1 in 16 working Australians (Approximately 861,000 individuals) are currently employed in tech related jobs. The Tech Council of Australia has predicted that by 2030, the tech  sector has the potential to contribute more than primary industry or manufacturing to the national economy.^[3]

The information provided in this publication is current as at the date of publication and subject to any qualifications expressed. Whilst Aon has taken care in the production of the articles on this website and the information contained in them has been obtained from sources that Aon believes to be reliable, Aon does not make any representation as to the accuracy of information received from third parties and is unable to accept liability for any loss incurred by anyone who relies on it. The information contained herein is intended to provide general insurance related information only. It is not intended to be comprehensive, nor should it under any circumstances, be construed as constituting legal or professional advice. You should seek independent legal or other professional advice before acting or relying on the content of this information. Aon will not be responsible for any loss, damage, cost or expense you or anyone else incurs in reliance on or use of any information in this publication.

[1] More than 100,000 tech workers laid off so far in 2023, but job opportunities are opening up, Insider Intelligence, Feb 15, 2023.

[2] Aon Australian Benefits Report. 2023.

[3] Aon’s Radford Global Database, 2023.