The demand for skilled talent remains high in 2025 among Canadian tech leaders. At the end of December 2024, Statistics Canada reported a 2.7 per cent unemployment rate for Canada's tech industry, which continues to face a persistent talent shortage.Low unemployment among skilled tech professionals, and high competition for those who possess the cutting-edge skills necessary to keep up, isn’t the only obstacle tech leaders at Canadian companies face. Many are struggling with challenges such as technical debt, budget constraints, and skills gaps, many in areas that might not have even existed a few years ago.Technology departments must often balance modernizing infrastructure, implementing emerging technologies like AI and cloud solutions, and strengthening digital security with limited resources. The pressure to accomplish more with existing teams often leads to technical compromises that create additional challenges down the road.The intense competition for skilled IT professionals has forced many Canadian companies to adapt their hiring strategies. To secure top talent, organizations are increasingly focused on offering competitive compensation, flexible work arrangements, and robust employee value propositions.As the demand for tech expertise continues to soar, Canadian companies are exploring innovative approaches to building their teams. This includes investing in talent development programs, leveraging contract workers to fill critical roles, and creating inclusive work environments that attract and retain a diverse pool of candidates.Robert Half’s e-book, Building Future-Forward Tech Teams, offers additional insight on how companies can assemble technology teams that are ready to tackle today and tomorrow’s challenges. Access it today.
What is the general state of the Canada IT job market?
Roles in AI and machine learning, business continuity, data and systems analysis, software development, and that support CRM, desktop, DevOps, and ERP systems are particularly difficult to fill in Canada this year.While competitive salaries are essential, retaining skilled employees has emerged as a key concern amongst Canadian employers.To foster retention, companies are increasingly focusing on enhanced benefits packages, expanded vacation time, and robust professional development programs to support employee growth and advancement.In addition, attracting skilled talent is increasingly about how well a company can provide a healthy work/life balance, including being willing to adapt to the desired work styles of high-caliber professionals. According to the 2025 Canada Salary Guide From Robert Half, many of these professionals value flexibility and feel underpaid – and in-demand professionals who feel undervalued or underpaid are quick to seek new opportunities. As more employers implement return-to-office (RTO) policies, companies that can offer adaptable work schedules, including hybrid or fully remote options, are particularly poised to distinguish themselves in the talent market.Visit the 2025 Canada Salary Guide From Robert Half for more Tech hiring trends.
What IT skills are in demand in Canada?
Machine learning and data science, cybersecurity, AI and automation, cloud, and software and app development are leading the charge when it comes to in-demand skills commanding premium salaries. As businesses increasingly rely on cloud-based systems and grapple with evolving cyber threats, professionals with expertise in these areas are highly sought after. Beyond specific skills, certain tech roles are consistently in high demand. According to an analysis of thousands of job postings and Robert Half placements, the following positions are in the top 15 per cent of in-demand technology roles, according to an analysis of thousands of job postings and Robert Half placements.AI/ML analystBusiness continuity analystBusiness systems analystCRM developerData analystDesktop support analystDevOps engineerERP business analystSoftware engineer/developerSystems administratorAs companies continue to embrace digital transformation, the need for IT professionals skilled in these technologies will only grow.This presents a significant opportunity for individuals to build successful careers in Canada's thriving tech ecosystem.
What hiring trends are impacting Canada’s tech sector?
While the country’s tech industry is undergoing a period of significant growth, marked by a robust hiring landscape and a fervent focus on innovation, this expansion is being tempered by a persistent challenge: the scarcity of skilled talent in Canada’s IT job market.A recent survey by Robert Half revealed that an overwhelming 91% of Canadian technology leaders are struggling to find qualified candidates to fill open positions. Despite this, the demand for tech professionals remains strong, with 54% of companies actively recruiting for new permanent roles and 41% seeking to fill vacated positions.As organizations navigate this talent-driven market, their focus is primarily on building teams with expertise in critical areas.Technology leaders across Canada have identified the following strategic priorities for 2025:AI, machine learning and automation initiatives: Leveraging these technologies to drive efficiency and innovation is the top agenda item.Security of IT systems and information: Safeguarding sensitive data and systems is paramount as cyber-threats continue to evolve.AI governance: As more Canadian businesses than ever embrace AI, it’s equally important that businesses incorporate oversight mechanisms to address risks such as data bias, privacy infringement, and misuse.ERP/CRM system implementation: Embracing digital technologies to enhance business operations and customer experiences.Cloud projects and initiatives: Migrating to the cloud and optimizing cloud-based solutions are key to staying competitive.Technology modernization: Supporting remote and hybrid work models is essential for attracting and retaining top talent.To address the skills gap and maintain operational flexibility, Canadian companies are increasingly turning to contract professionals. A significant 58 per cent of technology managers plan to expand their use of contract talent in the first half of 2025.This trend is particularly evident in high-demand areas such as AI and machine learning, technology process automation, data analytics and business intelligence, cloud architecture, software development, and cybersecurity.Contract workers offer a valuable solution by providing specialized expertise on a project-based basis, allowing organizations to scale their workforce up or down as needed. This approach also helps mitigate risks associated with hiring permanent employees in rapidly evolving technological landscapes.Robert Half has top tech candidates available for contract, permanent and remote positions. Browse candidates or contact us about your needs today.
FAQs
How does the IT job market in Canada compare to other countries?The US has a larger IT job market with more tech giants and startups. Generally, IT professionals in the US command higher salaries than their Canadian counterparts, especially in major tech hubs like Silicon Valley. Contrasting against Europe, Canada is often perceived to offer a better work-life balance compared to some European countries, particularly in the Nordic nations. Canada also consistently ranks high in quality-of-life indices, which can be a draw for IT professionals. Comparing to Asia, salaries in Canada are generally higher than in many Asian countries, but the cost of living also varies significantly. While Canada has a strong presence in AI and cyber-security, Asian countries often excel in specific areas like software development and IT outsourcing. What are the emerging IT trends in Canada?AI and machine learning are at the forefront of Canada's tech scene. With strong research institutions and a focus on talent development, the country is a leader in these fields. Demand for cyber-security professionals is increasing as organizations seek to protect sensitive data. And cloud adoption continues to accelerate as businesses in Canada seek flexibility, scalability, and cost savings. What are the average salaries for IT professionals in Canada?For the latest salaries of IT roles across Canada, consult the technology section of the 2025 Canada Salary Guide by Robert Half for more information. You can also read this article on the 15 hightest paying IT jobs in Canada in 2025.
About the Demand for Skilled Talent report
The Demand for Skilled Talent report by Robert Half is an authoritative source providing essential insights into 2025's employment trends. This report has offered a deep dive into Canada’s hiring landscape for over a decade, spotlighting challenges and strategies to attract and retain talent in today’s job market. It explores what employees seek in their careers, identifies common recruitment errors and suggests solutions. The report spans sectors like finance, technology, marketing, legal and human resources, proving crucial for business leaders and managers.Data methodologyThe surveys cited were developed by Robert Half and conducted by an independent research firm. Results may not total 100% due to rounding or allowing for multiple responses. Respondents included executives, hiring managers and workers from small (10-99 employees), midsize (100-999 employees) and large (1,000-plus employees) businesses in private, publicly listed and public sector organizations across Canada.Over 200,000 new positions from more than 5,400 unique job boards/company sites independent job boards and company websites are represented in this report, including 6,000-plus placements from Robert Half. Positions are categorized into more than 350 job titles within Robert Half’s Salary Guide using a proprietary mapping methodology that employs state-of-the-art large language models. This dataset includes roles across the finance and accounting, technology, marketing and creative, legal, administrative and customer support, and human resources professions.
