Canberra Economy 2026: Public Service, Defence Tech and the Growing Private Sector

Canberra's economy is unique in Australia. The federal public service has always been the foundational sector, providing employment stability that insulates the city from the economic cycles that affect other Australian cities. But the ACT economy has diversified significantly over the past decade and the private sector is now a much larger component than it was a generation ago.

The public service

The Australian Public Service (APS) remains the largest employer in the ACT. Departments, agencies and statutory authorities are headquartered in Canberra. The scale of the APS in the ACT creates a highly educated workforce, stable employment and high average incomes. Public service salaries are competitive with private sector equivalents and the job security is valued by the workforce.

Defence and intelligence

The Department of Defence, Australian Signals Directorate, ASIO and associated defence contractors and technology companies are a significant and growing component of the Canberra economy. Increased defence spending — driven by the strategic environment — has increased employment and investment in Canberra's defence technology cluster.

University sector

The Australian National University and the University of Canberra are major institutions. ANU is one of Australia's top research universities and its research programs and commercialisation activities contribute meaningfully to the ACT's knowledge economy. International students at both institutions contribute to the local economy.

Technology

A cluster of technology companies — many with defence and government clients — has established in Canberra. The CSIRO, Geoscience Australia and other scientific agencies have also spun out commercial enterprises. The tech sector is growing faster than the broader ACT economy.

This article was compiled by AI from the sources linked above and screened before publishing. See our editorial standards.