A recent Microsoft and Linkedin report entitled ‘Harnessing the hidden value’ (obtained free from www.techcouncil.com.au) demonstrates the economic value of experienced talent within US tech firms operating in Australia.
Australia has a AU$1 trillion relationship with the US, significantly larger than its relationship with any other country. On a per-employee basis, US tech firms contribute more to Australia’s GDP than both Australian-founded and other international firms. This relationship has been particularly important for the tech sector as US firms have played a key role in developing the now $167 billion tech industry.
Currently 75% of tech jobs require more than three years of experience, compared to just 58% for other professionals. Overall, the average tech worker requires four years of experience compared to only 3.1 years for workers in other professional occupations. US firms employ 102,000 tech workers in Australia, representing ~12% of the total tech workforce. 77,000 of these workers are experienced, and experienced talent produces on average 6.1% more economic value relative to inexperienced peers in similar roles. This effect generates $1.2 billion in productivity benefits each year. US tech firms employ 18% of Australian tech graduates.
On average, 800 individuals leave US tech firms each year to start or scale new firms in Australia. Collectively, US tech alumni contribute $2.25 billion to the Australian economy each year, supporting almost 12,000 jobs outside of US tech firms. The Australian Government is targeting 1.2 million tech jobs by 2030, requiring 653,000 new tech workers. One in 8 of these new jobs will be created by a US tech firm. By 2030, 1 in 5 experienced tech workers in Australia would have gained their skills from a large US tech firm.
Tech talent that leave US firms create value in their new roles by upskilling colleagues in other industries or creating new firms. Four in 5 (3,200) take on prominent tech roles in Australian tech firms, the public sector, academia, or other industries. Each annual cohort of US tech alumni joining new firms contributes, on average, up to $613 million in value added to the economy.