Canadian Tech Hubs Lead in Tech Talent Growth, Density

All eyes on the Canadian leaderboard

This year’s report – which measures North American tech markets based on their tech workforce growth, concentration, costs, quality and more – puts Canadian regions in the spotlight, with six making it into the top 20 overall.

Leading the charge is Toronto, holding the #1 spot among large Canadian markets and ranking 4th overall – up one spot from last year. Ottawa and Calgary each rose one spot to #10 and #20, respectively, while Vancouver and Montreal both dropped three spots to #11 and #15.

The Waterloo region ranks #1 among small markets, not only in Canada but across all of North America – and retains its 18th overall ranking from last year.

This marks the fourth consecutive year it has claimed this top spot. Other Canadian small tech talent markets highlighted in this year’s report include Quebec City, ranked #9 (40th overall), and Edmonton, ranked #18 (49th overall).

What’s driving the tech talent growth in these regions?

A powerful combination of top-tier talent, ample opportunities and high quality of life, as well as strategic investments and enticing incentives. As a result, Canada’s tech ecosystem is gaining significant traction as a desirable alternative for companies looking to expand globally – particularly for those hesitant to move to the US.

The numbers speak for themselves

Toronto added 95,900 tech jobs from 2018 to 2023, the most of any North American market, bringing its workforce to 314,100.

Combined with Waterloo – North America’s 3rd fastest-growing tech hub, with 46% growth and 29,100 workers – the Toronto-Waterloo Corridor is home to more than 343,000 tech professionals, making it the third-largest tech talent market in North America.

What’s the impact of a tech ecosystem this size? We could write a whole article on it – or better yet, a series! Oh wait, we did. But don’t go clicking just yet, we’ll leave these here for later:

Explore what’s happening in technology, manufacturing and automotive innovation in the Toronto-Waterloo Corridor.

In terms of overall tech talent growth rate, Canadian cities swept the North American top 5, with Calgary leading at 78.1%, Ottawa at 52%, Waterloo at 46%, Toronto at 44% and Vancouver at 31%. Not too shabby, right?

When we look at talent density, 4 out of 5 of the regions with the highest density of tech workers were also Canadian. Ottawa took the lead with 12.3% (tied with San Francisco), followed by Toronto (10.1%), Waterloo (9.6%) and Quebec City (8.1%).

Don’t adjust your screens – you read that right! We said it off the top and we’ll happily say it again. Of the top 50 tech talent markets in North America, Canadian cities dominated the rankings, claiming all 5 of the fastest-growing markets and 4 of the top 5 in tech talent density.

For businesses looking to grow, locating in areas with high concentrations of tech talent and high growth rates is a smart move. These regions not only make it easier to find skilled talent but also provide a solid support system with resources and partnerships that enhance competitiveness and fuel growth.

A young and dynamic workforce

Let’s talk about future talent. Waterloo leads with a 29.2% growth in residents in their 20s from 2017 to 2022, signaling it as a top lifestyle destination for young professionals. Toronto follows with 13.1%, and Vancouver rounds out the Canadian top three at 10%.

Interestingly, nearly half of the 50 regions studied saw negative growth in this age group, including major hubs like San Francisco Bay Area (-11.8%) and New York Metro (-10%), raising concerns for companies that rely on fresh talent pools.

Millennial growth? Waterloo ranks #1 in North America with a 20.2% increase in residents in their 30s, followed by Vancouver (18.4%), Toronto (16.4%), Ottawa (15.1%) and Edmonton (10.1). This surge of skilled tech professionals is essential when you’re looking for an innovative team that can grow with you.

Balancing cost and quality

Now, let’s talk money. Budgets are more important than ever, and Canadian cities offer an compelling solution. When estimating one-year company costs for an average of 500 employees and 60 square feet of office space, Canadian markets are significantly more budget-friendly than their US counterparts.

Among these markets, Vancouver tops the list as the most expensive, while Quebec City is the most affordable and Waterloo sits comfortably in the lower middle range.

With average tech wages significantly lower than those of US competitors, Canada strikes an optimal balance between cost and talent quality – especially in the Waterloo ecosystem, which CBRE recognizes as offering the “best value” in this regard. This advantage enables businesses to invest strategically without stretching their budgets.