The Unexpected Decline in University ICT Enrolments Amid Rising Tech Demand

In early 2026, Australian universities are witnessing a puzzling trend: a significant drop in enrolments for Information and Communications Technology (ICT) courses, even as the nation grapples with booming demand for tech skills in areas like artificial intelligence (AI), cloud computing, and cybersecurity. This decline persists despite the Australian government's concerted efforts to expand overall university places, adding thousands of domestic spots to encourage more students into higher education.

The shift raises critical questions for the higher education sector, particularly in how universities attract students to vital STEM fields amid changing perceptions of career viability. For prospective students eyeing careers in tech, this trend underscores the need to understand underlying factors and explore alternative pathways into the industry.

Breaking Down the Latest Enrolment Statistics

According to the Australasian Conference of Tertiary Admissions Centres (ACTAC) January 2026 offers report, only 7,686 new undergraduate students accepted offers in ICT-related degrees, accounting for just 2.9% of total offers. This marks a sharp decline from approximately 9,750 students in 2025, when ICT represented a higher proportion of commencements. Overall undergraduate offers fell by 2.2% to 265,046, bucking expectations of growth.

Health courses, by contrast, emerged as the top choice, with engineering seeing notable gains. Information Technology (IT), encompassing computer science and related fields, recorded the steepest fall among major disciplines. These figures highlight a reorientation in student preferences, with domestic undergraduates prioritizing perceived stability over tech innovation.

Government Initiatives to Expand University Access

The Australian Government has ramped up efforts to increase tertiary participation. In October 2025, it allocated an additional 17,500 domestic university places, followed by 9,500 more in November, aiming for record-high commencements in 2026. Education Minister Jason Clare emphasized this as a step toward the Universities Accord goal of 80% of the workforce holding tertiary qualifications by 2050.

Further support includes 1,500 spots in Fee-Free Uni-Ready bridging courses to prepare under-represented students. While these measures boosted overall capacity—particularly for regional and outer-suburban access—they have not stemmed the ICT-specific downturn, nor reversed the 2.2% dip in total offers.Explore research pathways that align with these expansions.

Why Students Are Steering Clear of ICT Courses

Several interconnected factors explain the ICT enrolment slump. Cost-of-living pressures and a robust job market are luring school leavers straight into employment, bypassing lengthy degrees. Perceptions that ICT no longer guarantees high-paying jobs—exacerbated by tech layoffs and AI automation fears—deter potential applicants.

• AI hype: Students worry coding roles will be obsolete, despite evidence AI creates more jobs in implementation and oversight.
• Degree skepticism: With only a 29% salary premium for tertiary graduates in Australia (below OECD averages), shorter vocational paths appeal more.
• Market saturation myths: Oversupply fears in entry-level roles, even as specialist shortages grow in cybersecurity and cloud.

Globally, similar patterns emerge, with U.S. computer science enrolments dropping 15% at graduate levels amid big tech turbulence.

Contrasting Surge in Health and Other Fields

While ICT fades, health dominates preferences, driven by acute workforce shortages—82% of health occupations were in deficit in 2023. Projections show 400,000 more aged care workers needed by 2050, with nursing shortfalls exceeding 70,000 by 2035. Engineering's uptick reflects infrastructure priorities.

This pivot addresses immediate needs but risks widening the tech skills chasm. Universities like those in Victoria, needing 59,267 health workers by 2026, are adapting curricula accordingly.

Industry Perspectives: A Widening Skills Gap

Recruiters warn of a 'shrinking talent pool' as AI and cyber demand explodes. Paxus' Nathan Coller notes 2026 as 'one for the record books,' with AI roles shifting toward practical delivery. Australia's pipeline targets 1.2 million tech workers by 2030, but declining enrolments threaten this.

The Occupation Shortage List flags hotspots in ICT business analysts and managers, while network engineers hold steady. PwC's 2025 AI Jobs Barometer shows a 56% wage premium for AI-skilled graduates, countering student fears.

For those committed to tech, higher-ed jobs in research and faculty offer stable entry points.

University Responses and Case Studies

Institutions are innovating. The University of Queensland's Bachelor of Computer Science emphasizes AI-resistant skills like system design, while Southern Cross University integrates real-world projects in its IT degrees. Enrolment data from Universities Australia shows STEM persistence, but ICT lags.

UniSC's ICT program blends cyber security and project management to boost appeal. Despite this, ACTAC's Teresa Tjia calls for monitoring the 'steady decline.'

Potential Solutions to Reverse the Trend

• Curriculum refresh: Embed AI literacy and interdisciplinary options, like health informatics.Tailor your CV for tech academia.
• Outreach campaigns: Highlight wage premiums and job growth via industry partnerships.
• Flexible pathways: Micro-credentials and bridging courses to ease entry.
• Equity focus: Target under-represented groups with scholarships, aligning with Elevate: Boosting Diversity in STEM.

Government could prioritize ICT in additional places. Explore scholarships for STEM persistence.

Future Outlook for ICT Graduates and Higher Education

Despite short-term dips, long-term demand ensures opportunities for ICT graduates. With international caps rising to 295,000 in 2026, universities may lean on global talent, but domestic pipelines remain crucial. By 2030, tech's role in Australia's economy demands proactive reforms.

Prospective students should weigh university salaries and career advice to navigate this landscape.

Photo by Fotos on Unsplash

Navigating Opportunities in Australia's Higher Ed Tech Landscape

This enrolment shift signals a maturation in student choices, favoring security over speculation. Yet, for ambitious minds, ICT remains a gateway to innovation. Leverage resources like Rate My Professor, higher ed jobs, and career advice to thrive. University jobs await skilled professionals, while post a job connects employers.