Every year, CBRE releases its highly anticipated Scoring Tech Talent Report, ranking the top 50 tech markets in North America based on a range of metrics, from tech talent availability to real estate costs. This comprehensive report provides insights into the tech scene across the continent, serving as a valuable resource for business leaders to make strategic decisions.
In this blog, we turn our spotlight to Toronto and dive deep into the city’s 2023 ranking. Toronto ranks fifth among the top 50 markets in North America, behind San Francisco Bay Area, Seattle, New York Metro, and Washington, D.C. This ranking underscores the city’s significance as a global tech hub. Despite dropping two spots from last year’s ranking, Toronto’s consistent standing among the top five markets highlights the city’s strength and resilience in attracting and retaining top tech talent.
A Large Talent Pool
Toronto boasts the third-largest tech talent pool in North America, ranking just behind the San Francisco Bay Area and New York Metro. The city has become a magnet for skilled, high-quality tech workers. Particularly, the occupation ‘Software Developers and Programmers’ experienced remarkable growth, rising by 58.3 percent from 2017 to 2022. This surge in talent showcases Toronto’s appeal as a tech hub, attracting developers and programmers from all over the world.
It is important to note that Toronto’s tech talent pool dipped slightly in 2022 to 285,700 tech workers, compared to 289,700 workers in 2021. The dip in employment is partially due to the economic uncertainty faced in 2022, coupled with tech layoffs and flexible work structures that allow tech professionals to work from anywhere. Although there was a decrease in tech employment in 2022, the city maintains its position as the third-largest tech workforce in North America. With Canada’s friendly immigration programs, Toronto’s tech workforce will continue to remain strong.
A notable characteristic to analyze within tech talent is the diverse, young population. Compared to other large tech markets* in North America, Toronto experienced a significant population growth in the 20s and 30s age groups between 2016 and 2021. Individuals in their 20s grew by 11.1 percent, while those in their 30s grew by 14.7 percent. This growth is among the highest across large tech markets*, serving as evidence of the city’s growing tech workforce and innovative potential.
As for diversity, Toronto’s tech smart workforce across all industries is made of 68 percent visible minorities, where Asians make up the majority. Women in tech amounted to 27 percent of the workforce, a steadily growing percentage.
*Large tech talent markets: >50,000 workforce
Strong Tech Talent Growth
Toronto experienced the second-largest tech growth in North America between 2017 and 2022, just behind San Francisco Bay Area. During this period, Toronto added 63,800 tech jobs, a growth of 29 percent over the last five years. In fact, Toronto was recognized as the fastest-growing tech talent market in last year’s edition, showcasing the city’s promise in the industry.
To sustain the city’s tech talent growth, Toronto is growing its tech talent pipeline. Toronto ranks in the top 10 among its U.S. counterparts for tech degree completions, which grew by 41.7 percent between 2017-2021 – a higher growth than the national average.
Tech Industry Dominance
Toronto’s tech talent is primarily concentrated in the tech industry itself, followed closely by the FIRE (Finance, Insurance, and Real Estate) industry. Around 43 percent of the tech talent in Toronto works within the tech industry, while 20 percent is employed within the FIRE industry. The concentrated workforce in the tech industry has fostered a robust innovation ecosystem, supporting Toronto’s rise as a global hub for AI.
Moreover, the large share of tech workers within the FIRE industry complements Toronto’s reputation as the nation’s leader in financial services innovation and a top destination for fintech investments. Toronto is the second-largest financial centre in North America, and the largest in Canada. All five of Canada’s largest banks are headquartered in Toronto, as well as many notable fintech companies such as Wealthsimple and Borrowell.
Tech ‘Jobs’ Market
Toronto has firmly established itself as a thriving tech job market. The city’s strong growth in tech talent, coupled with the presence of leading tech companies and a wide range of job opportunities, has created an ideal environment for tech professionals. Toronto was ranked as the top job market, creating 31,405 more tech jobs than graduates.
On top of supporting the growth in the city’s tech talent pipeline, Toronto-based companies hire large amounts of tech professionals. Recognizing the potential in Toronto, tech leaders such as Snowflake and Oxbotica have invested in the city’s tech ecosystem by establishing a presence here.
To complement Toronto’s tech ecosystem, the Government of Canada has launched a ‘Tech Talent Strategy’, introducing additional immigration programs to support Canada’s status as a leader in global tech talent recruitment and attraction. Among these programs includes a streamlined work permit for H1-B visa holders in the U.S. The program was so successful that it reached its target of 10,000 applicants within just two days – a testament to how attractive Toronto is for jobseekers.
Conclusion
CBRE’s 2023 Scoring Tech Talent Report highlights Toronto’s continued prominence as a leading tech market in North America. Despite dropping two ranks from the previous year’s report, Toronto has sustained its position as a global tech hub through its tech talent growth (second only to San Francisco Bay Area), its large and diverse tech talent pool, and thriving tech ecosystem. Looking forward, Toronto’s position as one of North America’s largest tech hub remains strong and continues to thrive.
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