Canada's tech talent market is entering a new phase of uncertainty. While demand for specialized skills remains robust, hiring patterns are evolving as companies refine their workforce strategies to adapt to technological advancements, new economic policies, and shifting employee expectations. Here’s a closer look at the key trends shaping the industry and what employers need to know to stay competitive.
Tech Hiring Is Becoming More Selective
Tech job postings have declined from their post-pandemic peak, yet wages continue to rise—indicating a shift in hiring priorities. Rather than broad hiring, companies are focusing on fewer but more high-impact roles.
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Data Source: Lightcast. Data Visualization: LevelUP. Job postings are measured as a yearly average. Wages reflect the average of median advertised wages in job descriptions. Wages shown in CAD.
Two factors are driving this trend:
- Saturation of Generalist Roles: The market is flooded with candidates for entry-level or generalist positions, making these roles less competitive.
- Rise of AI and Automation: Routine tasks are increasingly being automated, reducing the need for roles that don’t require advanced technical expertise.
As a result, specialized roles command premium salaries due to a limited pool of qualified candidates.
AI Skills Are on the Rise, But Adoption Remains Uneven
AI-related job postings have surged by 114% since 2020, especially in fields like software development and mathematics. But beyond these high-adoption areas, AI skills appear in just 0.1% of job postings, according to research from Indeed.
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Data Source: Lightcast. Data Visualization: LevelUP. Job postings are measured as a yearly average. Wages reflect the average of median advertised wages in job descriptions. Wages shown in CAD.
This contrast underscores a widening gap between industries embracing AI and those still on the sidelines. Some organizations may be underestimating AI’s impact, while others struggle to define AI-related skills in job descriptions. Either way, companies that fail to adapt risk falling behind as AI becomes more ingrained in the workplace.
Employers and talent acquisition leaders can take a proactive approach by integrating AI literacy into job requirements, training programs, and hiring strategies. Building a culture of AI readiness today will help ensure that businesses aren’t just keeping up, but staying ahead as AI reshapes industries.
Immigration Policy Changes Will Reshape Talent Pipelines
Immigration has long been a critical source of tech talent for Canada, with immigrants making up 35% of computer programmers and 43% of engineers. But new government policies aimed at slowing population growth and reducing the number of non-permanent residents could disrupt this pipeline.
With fewer international candidates available, competition for domestic talent is likely to intensify, making it more challenging for employers to fill specialized roles. For employers, this means it’s time to get creative. Upskilling domestic talent, strengthening your employer brand, and exploring alternative hiring channels (like internal mobility programs or partnerships with schools) will be critical.
Tariff Troubles Looming
If Canada-US trade tensions escalate, the tech sector could feel the pinch. Tariffs could lead to higher costs, hiring freezes, or even layoffs—especially for companies heavily reliant on US trade. Some businesses are already taking preemptive action. For example, SRTX, a Montreal-based material science and technology company, recently laid off 40% of its staff to brace for potential financial strain.
For employers, this means staying nimble. Consider adjusting hiring strategies to focus on cost-effective talent acquisition and leaning on government support where available.
Broader Labor Market Trends May Reshape Where Opportunities Exist
Toronto, Montreal, and Vancouver have seen job postings decline by 15% from pre-pandemic levels, while smaller cities and rural areas continue to see postings 26% above pre-pandemic levels.
If this trend extends to the technology sector, talent may increasingly shift toward emerging tech hubs, prompting employers to rethink their hiring models. Expanding remote hiring capabilities and offering relocation support for skilled professionals could be key to securing top talent in the years ahead.
What Matters to Talent in 2025
In a market where specialized skills are in high demand and domestic talent pools are tightening, connecting with tech professionals requires a focus on their evolving priorities. While compensation remains important, job seekers are increasingly drawn to roles that offer meaningful work and a clear sense of purpose. As such, a strong employer value proposition (EVP) remains essential for successful talent acquisition and retention.
Additionally, as AI and automation continue to reshape the tech industry, professionals are increasingly focused on career security and adaptability. Upskilling initiatives and clearly defined career progression paths will become key differentiators in securing in-demand talent.
At LevelUP, we specialize in helping companies attract, engage, and retain top tech talent with data-driven, flexible recruitment solutions. With a global reach, we support some of the best-known companies within technology, fintech, financial services, management consulting, advanced manufacturing, and healthcare. Contact us to discover how we can support your hiring strategy.
