Maple News reports that Canada is facing a growing tech talent shortage, prompting Canadian companies to look abroad for skilled professionals. Despite a thriving technology sector, more of the country’s top innovators are being lured south, attracted by higher salaries and expanded opportunities in the United States.
The findings stem from a December 2020 report by the Innovation Economy Council titled “Magnetic North: How Canada Holds its Own in the Global Race for Innovation Talent.” While the COVID-19 pandemic significantly disrupted the Canadian labor market—eliminating three million jobs at its peak—science, technology, engineering, and math (STEM) roles rebounded faster than most other sectors. As of October 2020, the number of STEM-related jobs in Canada was 8.7% higher than it was before the pandemic began in February.
This resilience is largely credited to the tech sector’s ability to pivot to a remote work model more effectively than many traditional industries. Programmers, engineers, and IT professionals found themselves in heightened demand as businesses expanded digital operations amid lockdowns.
Still, Canada faces a paradox: while job opportunities in the tech sector are growing at home, many highly skilled professionals are seeking employment elsewhere—primarily in the United States, where tech salaries tend to be more lucrative. This brain drain has increased the urgency for Canadian firms and governments to find solutions, including immigration-based talent acquisition.
Foreign companies are also taking note of Canada’s wealth of talent and the country’s welcoming stance on immigration. Tech giants like Google and Facebook have opened Canadian offices in recent years. Meanwhile, startups such as Gatik have set up research hubs in cities like Toronto to tap into the well-educated talent pool graduating from institutions such as the University of Toronto and the University of Waterloo.
“Toronto has been touted as a new Silicon Valley. There’s no better place than Toronto, as far as we’re concerned,” said Richard Steiner, Head of Policy and Communications at Gatik.
Canada’s rising profile as a global tech hub gives it a strategic edge. Still, without stronger incentives to retain homegrown professionals, the country may continue to lose its brightest minds—a challenge that makes attracting foreign tech talent even more crucial.
To ensure long-term growth, experts suggest Canada must not only sustain its support for STEM education and startup ecosystems but also improve competitiveness in compensation and career development.
As Canada navigates this global race for innovation talent, immigration policies are expected to play a central role in bridging the gap between demand and supply in the tech workforce.