IT Job Market in Canada
Canada has become one of the top countries globally, attracting immigrants in recent years. Not only does the country enact favourable policies, it is also one of the biggest economies in the world. The IT job market is at the driving seat of the economy. Moreover, it boasts a booming technological landscape with programming and software development skills in top demand.
Companies and industries in other sectors are drifting into a more digitalized world, propelling newer technological changes. The IT sector is rapidly expanding to satisfy this need for technological tools. Tech jobs continue to demand. This sector requires skills in front end, backend, full-stack, IT analyst, designing, cloud, Microsoft, AWS, Google Cloud Platform etc.
CANADIAN IT JOB MARKET TREND
In Canada, the IT sector is a growing industry with about 37,000 companies and revenue generation of 160 billion CAD. In 2021, tech firms gained over 14 billion in investment, surpassing the dot-com boom record. This capital investment greatly expanded the industry, with IT firms gaining over 700 deals.
After experiencing a slight decline in available jobs in 2019, the IT job market in Canada is expected to increase massively. The Canadian IT market comprises a workforce in industry and occupation.
Canada is adopting emerging technologies like Artificial Intelligence, Data Analytics, Cybersecurity and Cloud services. This puts it in a vantage position to benefit from the technological boom. With Ontario and Quebec as leading tech provinces, the industry continues to expand, accounting for approximately 5.3% of direct economic value. Interestingly, just before the pandemic, Toronto created more tech jobs than Washington DC and San Francisco. Currently, it is ranked higher than New York.
PROSPECTS IN NORTH AMERICA’S HOT TECH HUB
The progress of the IT industry in Canada has been heavily reliant on talent acquisition. Besides, the country has set up immigration programs that encourage recruitment of IT professionals. Aside from the United States, the country boasts an average of USD 81,000 per annum for IT jobs. This annual take home is one of the highest in the world.
Many IT companies are reviewing their recruitment procedures to broaden the scope for outliers. The Business Development Bank of Canada (BDC) published a study that predicted a 30% shoot up in digitization in 2023. This prediction spells good news for IT professionals. In addition, IT professionals can now apply without having traditional university degrees. Although, industry-recognized certifications are frequently required to show competence.
The BDC report notes that the industry faces a high percentage of shortage of workers. Thus, many employers are actively seeking to fill these positions anywhere in the world. Some Executives noted the scarcity of workers had driven salaries by up to 30% as companies are battling to recruit the best IT professionals.
CHALLENGES AND FUTURE OF INFORMATION TECHNOLOGY IN CANADA
These are some inherent problems facing the Canadian tech companies and could be why American tech giants best the Canadian ones. According to The Globe and the Mail, remuneration is one part as American companies pay close to 20% higher than Canadian companies. Also, The Canadian system does not entirely benefit local talent. With politicians referring to the industry as having cheap Canadian labour, they have allowed for the presence of more American companies that value mergers or acquisitions over innovation.
Many fresh graduates plunged into the market favour working for US firms which now encourage remote work. This is beneficial for IT professionals, but the industry is currently in crisis. Canadian IT professionals are consistently poached by US firms and other domestic organisations that offer higher wages. The increase in vacancies comes with the pressure to match the salaries offered by US companies. In some cases, Canadian IT professionals take up offers of up to USD 40,000 higher, spelling bad news for local companies. Thus, Canadian tech executives are having a hard time retaining their best talents.
If domestic companies cannot attract the best IT professionals, sustaining an ambitious growth plan will not be easy. It will require more flexibility and innovative ideas to grow the sector. Because labour is one of a company’s highest running costs, compensating for this would backfire if the revenue generation doesn’t correlate with lofty growth expectations.
The rise in job postings and the increase in salaries puts Canada as a good hub for IT professionals. You can take advantage of it by learning more about our career consulting services when you schedule an appointment with us. We can help you widen your professional network to get into top IT firms and get you through job recruitment processes.
At Elite careers, we offer these career coaching services for entry-level IT professionals in Canada. You can harness our resume creation services to get you started.