Why Are Millions Of American Workers Leaving To Canada In 2024, the job market, especially in the tech sector, is experiencing significant shifts, with Canada emerging as a major hub for tech jobs. The country has created approximately 1.1 million tech positions in the past year alone, catalyzed by the increasing demand for tech skills and strategic immigration policies. This growth is partly due to the U.S.'s restrictive H-1B visa policies, where only 188,000 out of 758,000 applicants were selected, pushing tech talent to seek opportunities in Canada.
The Canadian job market in 2024 is particularly appealing for unemployed or underemployed tech workers in the U.S., many of whom are unable to secure H-1B visas. Canada's tech job market benefits from this situation, as the country has implemented initiatives to attract these skilled workers, including a pilot program allowing 10,000 H-1B holders to apply for a three-year work permit, which reached full capacity on its launch day.
Cities like Toronto and Vancouver have seen the most growth, adding 89,000 tech jobs in the last year. The Canadian tech sector is now ranked third in North America, trailing only behind the San Francisco Bay Area and New York City, according to CBRE. This ranking reflects the robust tech infrastructure and the burgeoning demand for tech-related roles across various sectors.
Job hunting in Canada has become more attractive due to higher job security and competitive salaries, despite being lower than U.S. averages. For example, the average annual salary for Canadian tech workers stands at $94,800, compared to $129,700 in the U.S. However, the tech job market in Canada offers stability and growth opportunities that are currently more appealing to many tech professionals.
Moreover, Canada is actively improving its appeal to international and domestic tech talent through clearer pathways to permanent residency, which has helped retain highly skilled workers contributing to economic stability. This is crucial in a job market where newly graduated U.S. STEM students struggle to find employment in their field, with only 14% securing STEM jobs post-graduation in early 2024.
Canadian employers are also responding to the needs of the digital economy by increasing their tech job postings by 65% from the previous year, reflecting ongoing digital transformations and investments in tech infrastructure. These developments indicate that Canada's tech sector is not only absorbing unemployed tech workers but also driving innovations and creating new job opportunities.
As we progress into 2024, the tech job market in Canada is poised for further growth, underpinned by a strong influx of skilled workers and a proactive approach to meeting the demands of the modern digital landscape. This makes Canada an increasingly attractive destination for tech professionals globally, reinforcing its status as a leading tech hub in North America.
CHAPTERS: 0:00 Canada's Job Market 2:39 Migration Of US Workers To Canada 3:45 Unemployment Rising In U.S. 4:14 Inmigration To Canada 5:43 Graduates Unemployed 6:23 Increasing Job Market In Canada 7:23 Job Market In The U.S.
Produced by: Samantha Harvey Edited by: Jacob Smith Animation: Charlotte Brown Additional Footage: Getty Images
Canada is rapidly emerging as a premier North American tech hub, creating 1.1 million industry jobs over the past year. Driven by Toronto's explosive growth and favorable immigration policies, Canada is successfully attracting skilled professionals from the U.S., who are fleeing H-1B visa shortages and mass layoffs at major Silicon Valley firms.
Nearly 1.1 million tech jobs.
That is the number of positions that Canada has created in the tech industry over the past year.
Facebook's parent company recently committed to bringing 2,500 jobs to Toronto,
joining other Silicon Valley giants like Google, Microsoft and Twitter in Canada's largest city.
Many hiring managers plan to add new permanent positions in the first half of 2024,
as well as hire for vacant positions.
In recent years, the demand for U.S. H-1B visas has far exceeded the available supply.
For instance, in 2024, of the 758,000 applications received,
only 188,000 were selected for the final random draw, representing less than 25% approval.
This situation has left thousands of applicants without the possibility of obtaining a work visa for the United States,
forcing them to seek alternatives, including Canada.
A new report puts Toronto on top for high-tech job growth.
What we've seen is 70% of businesses are struggling to find the proper digital talent they need.
There isn't enough talent in Canada at this moment.
Toronto has had some momentum in recent years, appearing fourth on the list just last year.
It's a trend he says he expects to continue for some time.
This country has implemented a new initiative to attract global talent, including highly skilled tech workers.
In July 2023, Canada opened visa applications for a pilot program
that would allow up to 10,000 H-1B visa holders in the U.S. to apply for a three-year open work permit in Canada.
This program was a resounding success, reaching its maximum capacity on the first day.
Amazon, Google, and IBM are among the top employers of H-1B visa workers,
and that group has been particularly hard hit in the mass layoffs that we've been seeing in the tech space.
Data from the Economic Policy Institute shows those same companies have laid off 85,000 workers.
Canadian cities like Toronto and Vancouver have experienced the most significant growth
in tech job positions over the last decade, adding 89,000 jobs just in the previous year.
Canada's tech sector has gained significant momentum in recent years
and is now ranked by CBRE as the third most important tech hub in North America,
following the San Francisco Bay Area and New York City.
One of the main reasons we're at the top of this list this year is that Toronto had a 26% job growth year over year.
I think the next closest city was Seattle at about 22%.
So why is Canada poaching tech workers from the U.S.? And how does this affect the country?
The migration of tech workers from the United States to Canada can be attributed to several factors.
According to the Canada Labor Force Survey of February 2024,
employment in professional, scientific, and technical services increased by 0.9%,
representing an addition of 85,000 jobs compared to the previous year.
The most recent data from Statistics Canada showed 64% of companies surveyed
planned to hire entry-level professionals in the first half of 2024.
The economy has added jobs for seven months in a row, a total of 383,000 since September.
Furthermore, a global workforce study conducted by PwC in 2023 revealed that
64% of tech workers in the United States were satisfied with their job,
but many were also looking for salary increases, promotions, or to change employers.
This suggests that, despite job satisfaction, tech workers are willing to move in search of better opportunities.
This, coupled with massive waves of layoffs in the tech sector in the United States,
has made Canada an attractive destination due to its growth in the tech sector and demand for tech skills.
Tech layoffs threaten to thin out the city's workforce even more.
This week alone, about a dozen major companies announced job cuts, including Amazon and Google's parent Alphabet.
Even more layoffs in the tech sector.
The New York Times reporting that Amazon is cutting 10,000 corporate and technology employees.
Another factor is that Canada offers a clearer path to permanent residency for international students and foreign workers.
This has led to higher retention of talent and contributes to Canada's economic stability.
The Canadian immigration system is based on points, meaning that eligibility for permanent residency
is determined based on various factors such as language skills, work experience, and education,
rather than simply based on the applicant's country of origin.
It's the most diverse city in North America.
Ethnic communities and Canada's largest city growing quickly.
The entire country getting a massive infusion of newcomers.
The Atlantic provinces have seen their share of newcomers nearly triple in 15 years,
as Canada reports its highest proportion of immigrants in the country's history.
The average annual salary for full-time tech workers in Canada is $95,000.
And although this number is lower than the average in the United States, which is $129,000,
it remains attractive due to the stability and growth opportunities offered by the country.
Canada is one of the best places in the world to grow a technology business.
We've seen a significant increase in demand for training in digital skills with data science, web development,
digital marketing, user experience design, and cybersecurity leading the way.
Another factor is the lack of employment for newly graduated U.S. students.
In the first quarter of 2024, only 14% of STEM students in the United States worked in STEM fields after graduating.
This indicates a mismatch between the supply and demand for talent in the country.
More and more Americans are asking themselves, is a college degree still worth it?
With inflation hitting American pockets hard and tuition costs rising, folks are rethinking higher education.
The Burning Glass Institute finds 10 years after finishing school, 45% of bachelor's degree holders were underemployed.
That means they held a job that doesn't typically require a college degree.
On the employer level, a study by Canadian Tech Industry and Workforce Trends
showed that during the Q1-Q4 period of 2023, job postings by Canadian employers increased by 42,100
compared to the previous year, equating to a 65% increase.
This increase reflects the many interdependencies of digital transformation,
with investments in infrastructure, software development, data, cybersecurity, systems,
and support forming the mix of job roles and skills sought by Canadian employers.
As predicted months ago, the shortage of labor force has become an obstacle for over one-third of Canadian businesses,
while recruiting skilled employees has become a problem for 37% of all industries.
As we move toward an increasingly digital and connected future,
the United States' ability to attract and retain tech talent will be crucial for its growth and competitiveness in the global economy.
As businesses become more reliant on technology, investments in this sector are expected to continue accelerating.
Before now, robots could only replace part of a human job.
But this is digit, a robot its makers say is ready to do what human warehouse workers do.
Big investments in AI, but it doesn't include hiring or even retaining human beings.
From robots to artificial intelligence, Amazon says it's revolutionizing the way consumers get their orders.
With a projected growth of 5.3% in 2024 and a very positive outlook for the next five years,
Canada is solidifying itself as an attractive destination for tech workers,
driven by the growth of its tech sector, the demand for tech skills, and changes in work preferences.
As the tech landscape continues to evolve, Canada is likely to continue attracting highly skilled professionals,
reinforcing its position as a key tech hub in North America.
