At the University of New South Wales enrolments have declined from 500 a year to 160 during this period while Monash University's Faculty of Information Technology has reported a 25 percent drop.

Peter Bateson, Robert Walters IT consultant, said compared to this time last year, conditions for Australian IT professionals have never looked better. "The space has been a little slow, but there are a number of large organizations in the teleco space looking hard for IT workers, and IT security professionals are in high demand for 2006," Bateson said.

"Salaries for IT workers will definitely increase this year, and our clients are realizing they have more jobs available and need to recruit."

Due to the demand, Bateson said, clients are willing to pay more for potential candidates.

Ken Owiti, principal of recruitment firm Hamilton James, said many large projects are being tackled in the enterprise, which is creating a positive environment for both permanent staff and contractors.