Canada Talent Market Overview
| Market Appeal: | Canadian cities, notably Ottawa, Waterloo, and Toronto, have a high concentration of tech talent, with the tech workforce showing consistent growth. These cities offer cost efficiency and a strong future workforce, with Waterloo and Toronto being top markets in North America |
| Most common roles US companies hire in Canada: | The most in-demand roles include Cloud Engineers, Product Managers, and Information Security Analysts. These roles are crucial for digital transformation, product oversight, and cybersecurity |
| Skill Density: | Tech talent in Canada has grown by over 12% in five years, making up 7% of the workforce, with Ottawa having a tech talent density comparable to San Francisco. Toronto and Vancouver added nearly 150,000 tech roles recently |
| Cost Advantage of hiring in Canada: | Hiring in Canada offers 25-35% savings due to the strong American dollar. Canadian cities provide high-quality talent at affordable salaries, and 62% of the workforce is highly educated, making it cost-effective for US businesses |
| Ease of Hire: | US companies can hire Canadian employees, but it involves complexities, especially if the company doesn’t have an entity in Canada. Compliance with Canadian tax laws and labor regulations is necessary. Options include setting up a foreign entity in Canada, partnering with an employer of record, or engaging Canadian talent as contractors |
| Working Hours Overlap with US time zones: | Canada shares multiple time zones with the US |
| Typical Working Week | The standard working hours in Canada are Monday to Friday, between 8:00 a.m. or 8:30 a.m. and 5 p.m., totaling 37.5 – 40 hours per week |
| Public and Local Holidays | 11 public holidays in 2024 |
| Most common talnet hiring / engaging methods that US companies use in Canada | US companies typically hire Canadian talent by partnering with an EOR provider, or engaging talent as contractors. |
| Most common payment methods that US companies use to pay talent in Canada | Bank Transfer |
| Cultural Compatibility with US companies index | Canadian work culture and business practices are quite similar to those in the US |
| English level by EF EPI score in Canada: | 100% |
| Average Retention Rates in Canada: | The average turnover rate is 15.5% |
| Global brands that hire in Canada: | Coinbase, IBM, Microsoft, Neo Financial, Prodigy Game, Rivian, Scotiabank, Shopify, Stripe and more |
| Talent Market Capacity | 1.2 million |
| Employee tax: | 26.28% – 66.594% |
Canadian Tech Ecosystem
Canada’s technology ecosystem is experiencing rapid growth, with a projected increase of 22.4% for the 2021-24 period. Key drivers include high-quality living standards, venture capital investments, and a strong educational system. In 2021, venture capital deals in Canada reached a total of $13 billion, with Ontario and Toronto emerging as significant tech hubs. The Canadian tech workforce is growing faster than that of the US, with a notable increase in US-based companies hiring in Canada
International Companies with offices in Canada: International giants like Pinterest, Twitter, DoorDash, Microsoft, Netflix, MasterClass, and Reddit have opened Canadian engineering hubs, tapping into the local tech talent.
Local Unicorns:
- Dapper Labs: Blockchain-based, with a $7.60B valuation.
- 1Password: A password manager valued at $6.80B.
- Hopper: A travel app valued at $5.00B.
- SSENSE: An online luxury fashion platform valued at $4.15B.
- PointClickCare: Web-based software for long-term care facilities, valued at $4.00B
Canadian Infrastructure
Internet Connectivity: As of 2023, 93.5% of Canadian households have access to high-speed Internet, a significant increase from 79% in 2014. By 2026, this is expected to rise to 98.6%. The government’s Universal Broadband Fund (UBF) and other federal and provincial investments are driving this growth
Mobile Penetration: There were over 33 million mobile subscribers in 2019, with mobile subscriptions per 100 inhabitants standing at 92.53. Approximately 86.1% of Canadian households have at least one smartphone. In 2020, there were 29.83 million mobile internet users, and this number is projected to reach 33 million by 2025
Canada Salary Insights
Common Leave
Paid annual leave: 2 weeks of PTO
Paid maternity/paternity leave: 15 weeks’ maternity leave and 35 weeks of parental leave
Sick leave: protected time off for sick leave
Bereavement leave: five days of unpaid protected bereavement leave
Common Benefits in Canada
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Holiday schedule in Canada 2024
- Monday, January 1, 2024New Year’s Day
- Friday, March 29, 2024Good Friday
- Monday, April 1, 2024Eastern Monday
- Monday, May 20, 2024Victoria Day
- Monday, July 1, 2024Canada Day
- Monday, August 5, 2024Civic day
- Monday, September 2, 2024Labour Day
- Monday, September 30, 2024National Day for Truth and Reconciliation
- Monday, October 14, 2024Thanksgiving Dat
- Monday, November 11, 2024Remembrance Day
- Wednesday, December 25, 2024Christmas Day
- Thursday, December 26, 2024Boxing Day
Canadian Talent Hubs
Canadian Tech Talent Hubs:
Toronto, Montreal, Vancouver, Ottawa, Calgary, Quebec City, Edmonton, and Waterloo Region are key Canadian tech hubs.
Toronto and Montreal are particularly prominent, with Toronto being a top-ranked North American city for tech talent and Montreal showing strong growth in tech jobs.
City Overview: Tech Talent Numbers
- Toronto: 285,700 tech talents
- Montreal: 172,400 tech talents
- Vancouver: 111,100 tech talents
- Ottawa: 94,100 tech talents
- Calgary: 52,200 tech talents
- Quebec City: 36,400 tech talents
- Edmonton: 31,100 tech talents
- Waterloo Region: 29,700 tech talents
Tech Talent Education:
Toronto is a standout with the University of Toronto ranking in the top 20 globally for universities and producing a large number of STEM grads.
Ontario produces 63,500 STEM grads annually.
A significant portion of Canada’s workforce, especially in Toronto, is made up of immigrants, many of whom are highly educated.
Talent Acquisition
Job Search Platforms: In Canada, job seekers and employers frequently use platforms like Indeed, CareerBuilder, LinkedIn, Eluta, Jobboom, Glassdoor, Monster, SimplyHired, Google for Jobs, ZipRecruiter, and Ladders.
Talent Acquisition and Recruitment: The Canadian government is actively working to position Canada as a leader in global tech talent recruitment. Key initiatives include developing a new Innovation Stream under the International Mobility Program, promoting Canada as a destination for digital nomads, creating a streamlined work permit for H-1B visa holders from the US, and improving existing programs like the Global Skills Strategy and the Start-up Visa Program. These efforts are aimed at not only filling in-demand jobs but also attracting skills and business talent for future job creation.
Employment Termination
Termination process
In Canada, the approach to dealing with underperforming employees leans more towards improvement and engagement rather than immediate termination. However, when termination becomes necessary, Canadian employees are safeguarded by various protections. Unlike at-will employment practices, Canadian employment termination laws vary depending on the province or territory. For example, Quebec provides additional protections for employees who have been with an employer for over two years.
Notice period
In the event of termination, Canadian employees generally have a right to either a notice period or compensation in place of notice. This notice period depends on several factors, including the employee’s age, length of service, the nature of their job, and the availability of similar jobs elsewhere. The specifics and duration of this notice period can differ from one province to another.
Probation periods
Probation periods are a standard practice in Canada, often lasting about three months. In some provinces, probationary periods are mandated, offering employers a level of protection. This is applicable even if the probation period is not explicitly stated in the employment contract.
