Canadian tech jobs surge, but office space crunch persists
Credit to Author: Evan Duggan| Date: Wed, 23 Oct 2019 14:35:37 +0000
A new report shows that the number of technology workers in Canada reached nearly 1.7 million at the end of last year.
Computing Technology Industry Association (CompTIA)’s Cyberprovinces 2019 study reveals that overall tech jobs grew by 3.8 per cent in 2018, year over year, with net tech employment increasing by an estimated 249,000 new jobs since 2010.
The report also found that tech wages averaged $78,070 in 2018 — that’s 51 per cent higher than the average Canadian private sector wage of $51,794.
One question that emerges from the numbers is, where are these high-paid workers going to work? According to a recent JLL report, Toronto and Vancouver now have the lowest metropolitan office vacancy rates in all of North America.
Tim Herbert, CompTIA’s senior vice-president of research and market intelligence, discussed that issue and also shared two other main takeaways from the study in a call with Postmedia on Tuesday.
Canadian net tech employment grew by 61,000 positions last year, the report showed.
“That is a very strong number,” Herbert said. “That’s the strongest growth rate over the past 10 years across Canada.”
The Canadian tech job growth rate outpaced that of the U.S., he said.
Moreover, Canadian employers posted job openings for some 116,000 tech positions in 2018, meaning there is much more room for growth.
Tech jobs are now permeating many industries as non-tech-centric businesses undergo digital transformation.
Herbert said IT teams, for instance, are now one of the fastest growing parts of many businesses, which need more space for those new hires to help non-tech-savvy staff deal with technology. But also, more businesses need high-level help to deal with major innovations like artificial intelligence, big data and robotics.
“This is a story of greater use of technology across all industries,” he said.
Vancouver is facing a downtown office vacancy rate of less than three per cent. Toronto’s is even lower.
“(Demand for space is) not just limited to technology companies, who are starting to take office space or build new headquarters, but a range of different company types are attracting tech talent,” Herbert said.
What happens if or when companies are squeezed out of Vancouver or Toronto?
In the U.S., secondary cities are now becoming viable options for tech firms priced out of Silicon Valley or New York City, Herbert said. CompTIA’s U.S. version of the study found that secondary cities now have higher growth rates than the major metropolitan tech hubs.
“Something like a Charlotte, or a Kansas City, or an Austin,” Herbert said. “These cities (are) more affordable, (and) in some cases you can make an argument that there is better quality of life.”
A similar transition could start to accelerate in Canada with cities like Calgary, Kelowna, Kitchener-Waterloo or Victoria taking more of the tech load due to more affordable office space and labour.