If there’s one issue that keeps coming up in conversations with our members, it’s this: how do we find the digital skills we need, and how do we make sure more people can get those skills in the first place?

It’s clear that the shortage is real – and it’s growing.

Over the past financial year, the tech sector lost about 30,000 jobs, bringing the national workforce to just under 950,000. The Government’s target is 1.2 million tech jobs by 2030, which shows how much work lies ahead. Here in NSW alone, businesses are facing a shortfall of about 85,000 digital roles.

These aren’t just statistics. They’re everyday realities for small and medium businesses trying to innovate, improve productivity and stay competitive in a rapidly changing economy.

That’s why initiatives like the Digital Compact matter – and why Business NSW is committed to making sure they actually help SMEs in practical, meaningful ways.

Opening New Pathways Into Tech Careers

Business NSW has signed the Digital Compact, and one of its most useful pieces is the 20% Alternative Pathways Pledge. It encourages businesses to make sure that by 2030, at least one in five entry-level digital hires comes through a non-traditional pathway – things like vocational training, bootcamps, industry programs, or hands-on learning.

For SMEs, this can make a big difference.

When hiring is tough and budgets are tight, widening the talent pool helps businesses find capable people sooner. It also gives more Australians access to rewarding digital careers, even if they didn’t take the university route.

It’s a practical, grounded approach to a problem that isn’t going away any time soon, and Business NSW is proud to support it.

Building Digital Capability

Skills shortages aren’t something we can fix overnight, but we can support businesses as they build capability today.

Business NSW already does this through forums, workshops and webinars that help members get across:

• digital literacy
• cybersecurity
• AI, and
• data and productivity tools.

Plus, there’s more coming.

Business NSW is entering a new partnership with one of the world’s largest technology companies, alongside two of our member businesses, to deliver a statewide AI adoption and capability program.

That means giving businesses hands-on support to adopt AI in ways that actually improve productivity and competitiveness – without needing a team of specialists sitting in the back office.

Digital capability isn’t just about cutting-edge tech either. Social media alone has transformed how businesses need to communicate and engage with customers, and it has its own learning curve.

Skills Shortages Aren’t Going Away – But Neither Are Solutions

Our recent skills survey reinforces what members have been telling us for years.

The biggest productivity boosters businesses identify are:

• hiring skilled workers
• upskilling staff, and
• adopting automation and AI.

And the biggest obstacles?

• budget constraints, and
• difficulty finding and retaining skilled people.

Given these realities, solutions must be practical, flexible and tailored to the way SMEs operate.

We also want to help businesses shift toward skills-based hiring – looking at ability and potential, not just formal qualifications. It’s a simple shift that can open doors for more people and help businesses find the talent they need more quickly.

Building a Workforce for the Future

At the end of the day, the digital economy is built on people as much as it is on technology.

By opening new talent pathways, supporting skills development and delivering capability programs that meet businesses where they are, we can help build a workforce that is diverse, resilient and ready for the future.

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