The global labour market continues to evolve amid a backdrop of remote work, shifting migration patterns, and increased economic development, suggests a new report.
But at least the worst of the layoffs is probably behind us, data from CBRE shows.
The worldwide unemployment rate closed 2022 at 5.8%, according to statistics from the United Nations’ International Labour Organization.
Canadian tech talent hubs are roughly in line with the global average: 6% in Toronto, 5.3% in Vancouver, 4.9% in Montreal, and 4.5% in Ottawa.
These regions are counted among 75 “powerhouse” talent hubs from around the world as identified by commercial real estate services giant CBRE.
CBRE identified these established markets as “major urban centres with large tech talent pools, mature tech ecosystems, stable regulatory environments, access to capital, and the ability to attract tech entrepreneurs and talent from across the world.”
These clusters tend to form around universities that invest in technology and innovation and provide a steady flow of fresh talent, CBRE observes—a stereotype which certainly applies to Canada’s hubs, where world-class institutions such as UBC and the University of Waterloo attract and inspire tomorrow’s tech workforce.
And these markets are at the heart of CBRE’s latest report, the 2024 Tech Talent Guidebook.
The enterprise’s comprehensive analysis of labour supply, cost, and quality aims to help decision-makers meet critical business and innovation objectives, including corporate location and hiring strategy.
The Guidebook posits that the waves of layoffs plaguing the tech sector since 2022 are grinding to a halt.
“Many tech companies over-hired when demand spiked for their products and services during the pandemic,” the report states—an error some Canadian leaders like Shopify’s Tobi Lutke have openly admitted to making.
Economic uncertainty through 2022 led to a notable rise in layoffs in tech.
While it appeared to be a bloodbath in the moment, the widespread trimming of fat was more of an inevitable market correction: layoffs effectively returned the tech talent labour force to normal pre-pandemic levels.
Now that the tech talent market is slightly more balanced, layoffs are down dramatically, CBRE data shows—with figures dropping by more than 70% in the second half of 2023 versus the first half.
Moving forward, Canadian hubs are ripe with momentum.
Ranking five-year growth rates (2017-2022), Canadian cities Vancouver (2nd), Toronto (3rd), and Montreal (6th) rank highly among North American markets.
