How Technology Is Changing Toronto Employment

400,000 JOBS AND GROWING

Technology is already here and helping improve the Toronto economy.




Report by
Tech Toronto

Tech related jobs account for 400,000+ jobs that are above average pay and the sector has been growing at twice the rate of overall jobs.

We conducted this study to show the impact technology has had on the Toronto economy and suggest ways we can make it easier for the technology ecosystem to continue to prosper and grow. For the purpose of this report, Toronto is defined as comprising of Toronto, Peel and York census divisions.

All figures in Canadian dollars.

The Toronto Tech Ecosystem


The Toronto tech ecosystem has a total of:

401,000 jobs = 15%
of all Toronto jobs

Toronto has the greatest tech presence in Canada as tech jobs found in all sectors of the economy, including traditional industries like manufacturing, natural resources and finance.

Since 2010, the tech ecosystem added:

51,000 jobs

The tech ecosystem has been outpacing primary Toronto industries such as finance and manufacturing when it comes to job growth.

Fig. 2: Job Growth By Industry (2010-2015)

Toronto’s tech ecosystem has added 25,000 jobs beyond expected and has been effectively doubling the national tech growth trends.

A unique set of factors in the city have combined to spur this growth. This speaks volumes about the importance of Toronto as a national tech hub.

Fig. 3: Toronto Tech Ecosystem Growth Since 2010

Tech jobs in tech industries have the highest average hourly wage in the ecosystem:

$36.79
per hour

Fig. 4: 2015 Average Hourly Earnings

$25.66 $32.19

The tech ecosystem in Toronto paid out over:

$24
Billion in salaries

Fig. 5: 2015 Toronto Salary Payout

This represents 17% of all the compensation paid in the city in 2015, compared to 15% of the city's employment.

Toronto’s tech ecosystem is economically resilient with a growing startup ecosystem containing:

2,500
to 4,100
active tech startups

Public Policy Recommendations


    Attraction & Retention

  1. Make Toronto-Waterloo world renowned awesome for fintech and machine learning.
  2. Introduce fast track immigration visa for tech talents.
  3. Workforce & Education

  4. Increase enrollment and diversity in post secondary STEM programs.
  5. Pay companies to train and hire re-trained workers.
  6. Infrastructure

  7. Make housing better and more affordable.
  8. Make it easier for tech companies to choose the right accelerator/incubator.
  9. Regulation

  10. Modernize and harmonize the regulatory environment.
  11. Government Business Support And Procurement

  12. Re-distribute government funds from incumbent tech companies to scale-ups and start-ups.
  13. Solve civic problems and strengthen local tech companies via procurement.

About the study

Over the last few years, technology and entrepreneurship have been studied, talked about and promoted as the saviour to all that ails our economy. It’s said that they will create the prosperity and jobs we need to keep Toronto a vibrant world-class city.

We at TechToronto believe the above to be true, but we also believe the average Torontonian doesn’t realize technology has already changed our economy to a great extent. The Internet, mobile technologies, wearables, big data and machine learning have created thousands of new companies and jobs in Toronto. While traditional industries that have powered our economy have shrunk, technology has grown.

This study was inspired by the methodology of The New York City Tech Ecosystem: Generating Economic Opportunities for All New Yorkers, which was unique because it included all jobs from tech industries as well as tech occupations in non-tech industries.

Purpose of this study

1

Recognition
Identify the tech ecosystems importance to our economy.

2

Local Awareness
Build awareness of the contribution the tech ecosystem has already had to the local economy.

3

Support Progress
Help start the conversation around the progress of the support for the tech ecosystem by our public policy leaders and the general public.

Acknowledgements

We hope you find this report useful, and we would like to thank the following people for making it happen.

PWC

PwC Canada has been powering Canadian technology right from the start. With more than 6,500 partners and staff in locations across the country, PwC helps Canada’s top technology companies identify and achieve their potential.

Thank you to Jesse Albiston for managing this project, Adam Thorsteinson for contributing the economic analysis, Burzin Contractor, Cassandra Ruggiero, Laura Hildebrand and all the other PwC members who made this report possible.

Emsi

Emsi, a CareerBuilder Company, is a leading provider of employment data and economic analysis. TechToronto used Emsi’s Analyst tool to estimate the size of the Toronto tech ecosystem and its associated wages, educational requirements and demographics.

Thank you to Jordan Vukanovich, Brendan O'Neill and Josh Wright for their support and economic data expertise.

UOT

At the University of Toronto and the Munk School of Global Affairs, they believe that the world needs better public policy and better governance. Citizens of all countries deserve greater security, wider opportunity, and the chance to lead healthy and fulfilling lives.

Thank you to Travis Southin of the Innovation Policy Lab at University of Toronto’s Munk School of Global Affairs for contributing to the research and policy analysis in the report and David Wolfe, Co-Director of the Innovation Policy Lab, for providing advice and input to the report.

A very special thanks to:
Betakit
Douglas Soltys of Betakit for providing feedback on early versions of the report.

Betakit
Potluck for the assistance in handling the release of this report.


Financial support of TechToronto

FacebookGoogleLighthouse Labs
TorontoNascentDMZ Hired