The rise of artificial intelligence (AI) and the increasing adoption of technology across industries has led organizations to explore new ways to transform and streamline operations to stay competitive. As a result, the demand for tech talent has surged, often surpassing the available supply in certain markets. Cities that are best positioned to capitalize on these growth opportunities and attract tech entrepreneurs and skilled workers typically have mature, well-established tech ecosystems – and Toronto is one of them.
After dropping to fifth place last year, Toronto has reclaimed its fourth-place position in CBREs latest Scoring Tech Talent report. The comprehensive report evaluates over 80 North American cities and ranks the top 50 tech talent markets based on 13 key factors. As a leading tech market, Toronto comes in just behind the San Francisco Bay Area, Seattle, and New York. Its prominent ranking is attributed to significant growth in tech jobs in recent years, a vibrant tech ecosystem, and a fast-expanding tech talent pool.
The Toronto-Waterloo region has solidified its reputation as a North American tech powerhouse, now home to the third-largest tech cluster on the continent. The region boasts a mature tech ecosystem of more than 15,000 tech companies and over 5,200 startups(1)—including global tech giants like Microsoft, IBM, Google, Bosch, EPAM and Intel. As a powerhouse market, the Toronto-Waterloo Corridor is renowned for its leadership in artificial intelligence, cybersecurity, health tech, fintech, life sciences and more. It is also home to a robust, and growing, talent pool of 300,000 to 500,000 professionals.(2)
As a key hub in the Toronto-Waterloo Corridor, the city of Toronto has seen impressive growth in recent years, adding 95,900 new tech jobs between 2018 and 2023. This represents the highest job gains of any North American market during that period, with a 44% growth rate.(3)As a result, Toronto now boasts one of the highest concentrations of tech talent as a share of total employment, reaching 10.1% in 2023.(3) This concentration is nearly double the 50-market average of 5.5%, reinforcing Toronto’s position as a leading tech market.(3) With tech job opportunities continuing to expand and outpace the supply of tech graduates, the city is becoming an increasingly attractive destination for technology professionals.
The growing adoption of technology across industries has driven a surge in demand for skilled tech professionals, impacting both small and large markets. This is especially true in the field of AI, where global demand for advanced talent has fueled job growth across all tech sectors. Canada has emerged as a leader in AI specialty talent, with major cities like Toronto, Vancouver, and Montreal representing 60% of the nation’s AI talent.(3)
Toronto, in particular, has established itself as a hub for AI research and development, attracting top talent, startups and notable tech giants—many of which are expanding their footprints downtown, with some even doubling their size. Among the various factors driving the city’s appeal, like its skilled tech talent pool and strong growth potential, the city’s relatively lower operational costs make it an attractive alternative to U.S. markets. For example, Toronto’s combined office and labour costs are nearly half those of San Francisco.
According to the report, one of the key drivers behind the growth of AI-specialty talent in any market is the presence of universities with well-established AI education programs. Toronto is home to various educational institutions dedicated to AI, including the University of Toronto’s Vector Institute, which is recognized as one of the leading AI research organizations worldwide. Toronto Metropolitan University also plays a significant role with its AI Lab, which focuses on applications in key sectors like healthcare, business, and urban planning. These institutions actively collaborate with AI research labs, startups, and major tech companies such as Google and Microsoft, offering students key hands-on experience and industry insights. The combination of cutting-edge research, top-tier faculty, and a vibrant network of AI-focused companies creates a dynamic ecosystem in Toronto where talent and innovation can thrive.
Educational attainment and a high concentration of new graduates play a crucial role in shaping a market’s tech talent outlook. In 2022, Toronto ranked ninth place in the Top 10 North American Markets for Educational Attainment – with a 44.6% educational attainment rate well above the Canadian and U.S. national averages of 32.2% and 35.7%, respectively.(3) Not only does the city boast a highly educated workforce, but its level of tech graduates is also noteworthy. From 2017 to 2022, the city’s tech talent graduates increased by an impressive 44.1%—the highest growth rate among the top 10 metro markets—indicating a significant influx of tech talent added to the labour pool each year.(3) The city’s concentration of residents in their 20s from 2017 to 2022 grew by 13%, ranking it second in overall growth among all tech markets. This demographic shift is a significant contributor to the growth and innovation of its workforce and the talent market.
As a consistently top-ranked North American city, Toronto’s continued rise as a tech powerhouse is driven by its thriving tech ecosystem, a rapidly growing and highly educated talent pool, and competitive advantages in both cost and opportunity. With major tech companies, world-class universities, and a dynamic startup scene fueling growth, the city is well-positioned to remain at the forefront of North America’s tech landscape. Its strong technological foundation and promising growth potential highlight why both Toronto and the Greater Toronto Area (GTA) remain key markets of focus for our firm.
Read CBRE’s full 2024 Scoring Tech Talent report here
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