Toronto has firmly established itself as one of the top cities for tech talent in North America, ranking 4th in a recent report by CBRE. Over the past five years, the city has experienced remarkable growth in tech jobs, with a particular boost from the growing demand for artificial intelligence (AI) skills. From 2018 to 2023, Toronto added nearly 96,000 tech jobs, marking a 44% increase. This surge has helped Toronto climb one spot in the rankings, now sitting just behind the San Francisco Bay Area, Seattle, and New York.
A major driver behind Toronto’s success is the increasing demand for AI expertise. AI skills are no longer exclusive to tech companies—businesses across all sectors, including finance, law, and manufacturing, are hiring tech talent to stay competitive. Colin Yasukochi, executive director at CBRE’s tech insights centre, highlighted that, for the first time in over a decade, more tech talent is being hired by non-tech companies than by traditional tech firms. This shift underscores how integral technology, and especially AI, has become across industries.
Toronto has also become a hub for AI research and development, attracting top talent from around the globe. Liz Nucci, CBRE’s senior vice president, explained that both local AI startups and major tech companies are expanding their footprints in downtown Toronto. Some businesses are even doubling their office space to accommodate the rapid growth of the tech sector. This influx of AI professionals is further solidifying Toronto’s position as a leading tech city.
One reason for this growth is the lower operational costs in Toronto compared to other major U.S. tech hubs. Office and labor costs in Toronto are nearly half those in San Francisco, making the city an attractive destination for businesses looking to expand without the hefty price tag of other tech capitals. Toronto’s cost-effectiveness, combined with its growing tech ecosystem, has made it an appealing location for both startups and established tech giants.
While Toronto’s tech scene is thriving, there are challenges, particularly in the housing market. Rental prices in the Greater Toronto Area (GTA) have risen by 34% over the past five years, and the cost of homeownership remains high. This could potentially hinder talent retention, as many workers factor housing affordability into their decisions about where to live and work. Nucci emphasized the importance of addressing housing challenges to remain competitive in attracting and keeping top talent.
The report also notes the growing role of Canadian cities in the tech sector. Ottawa moved up one spot to rank 10th in North America, and Calgary jumped to 17th. In contrast, cities like Vancouver, Montreal, and Waterloo saw declines in their rankings, reflecting the shifting dynamics of the tech industry across Canada. The availability of immigration-friendly policies in Canada, particularly in comparison to the U.S., has been a significant factor in attracting skilled tech workers. These policies, including more accessible visa options, make Canadian cities like Toronto an appealing choice for international talent looking to establish their careers.
In conclusion, Toronto’s tech sector is booming, with AI driving much of the growth. The city’s combination of a skilled talent pool, growing number of tech job opportunities, and lower operational costs compared to other North American tech hubs has made it a key player in the global tech industry. However, to maintain its competitive edge and continue attracting top talent, addressing housing affordability will be crucial for the city’s long-term success.