Toronto Leads Canadian Tech Job Growth Ahead of U.S. Markets

Toronto has emerged as a key player in the tech employment sector, ranking third in CBRE’s latest annual analysis of North America’s premier tech talent hubs. This report evaluates various performance metrics and employer attractiveness, revealing that five other Canadian cities also feature in the top 15, with two more making the list of the top 50 markets. The trajectory of Toronto’s growth takes on added significance when examined in the broader context of the regional tech ecosystem.

Canada's Tech Job Surge

Canada's tech job growth has surged over the past four years, with estimates for 2025 alone suggesting the addition of 91,300 positions. This represents a 7.6% growth rate, elevating the total tech employment in Canada to nearly 1.3 million. In contrast, the U.S. saw an increase of about 109,000 tech jobs, translating to a mere 1.8% growth. This slower pace has contributed to a total workforce of nearly 6.3 million in the U.S. tech sector last year. The stark difference in growth rates raises questions about underlying market dynamics in the two countries. Canada seems to be fostering a favorable environment for tech businesses, possibly due to lower operational costs or more accessible venture capital.

Marc Meehan, managing director of research at CBRE Canada, highlighted that “tech employment growth is resurgent, and Canadian markets are leading the way forward.” Toronto was a key contributor to this narrative, gaining an impressive 75,000 tech jobs between 2022 and 2025, marking a significant 26.5% increase from previous employment numbers. While this positions Toronto favorably within national rankings, Calgary outperformed it with a staggering 56% growth, adding 28,900 jobs. This begs the question: is Toronto’s growth narrative overshadowing emergent competitors like Calgary? Waterloo, too, joins the conversation with a notable 37% increase, translating to 11,400 additional positions during the same timeframe. These metrics may ignite discussions on the shifting balances of power within Canadian tech hubs.

Canadian Cities in the Rankings

Overall, the top five tech hubs in Canada have remained consistent from the previous year. Following Toronto are the San Francisco Bay Area and Seattle in the first two spots, with New York City and Austin rounding out the top five. Other notable Canadian cities include Vancouver in ninth place, Waterloo Region at tenth, and Montreal at eleventh. Calgary and Ottawa hold the fourteenth and fifteenth positions, respectively, while Quebec City and Edmonton rank thirty-seventh and forty-second, respectively. This clustering suggests a pronounced concentration of tech talent in a handful of metropolitan areas, raising compelling questions about the sustainability of such growth.

Here's the thing: while it's encouraging to see Canadian cities ranking well, the continued dominance of a few hubs may come at the expense of broader national innovation. Cities like Quebec City and Edmonton, while lagging behind, might possess untapped talent and opportunities that policymakers should seek to cultivate. Encouraging a more equitable distribution of tech growth could be beneficial not only for individual cities but for Canada's innovation ecosystem as a whole.

Artificial Intelligence Job Landscape

Toronto stands out as the only Canadian city among the ten markets with the highest concentration of artificial intelligence (AI) specialists, placing fifth with 33,400 roles in this field. This accounts for about 9.3% of Toronto's total tech workforce. Washington, D.C. slightly leads with 33,500 AI positions, while the San Francisco Bay Area commands the sector with approximately 98,700 specialists, and Seattle comes in at about 68,000. Montreal follows Toronto as Canada’s second-best city for AI, with around 10,000 related jobs, ranking fifteenth overall. This position positions Toronto as a crucial player in the global AI race, though competition continues to intensify.

Anticipations for 2026 indicate the AI job landscape may shift yet again, with positions in this field increasingly dominating the tech sector's job market. Demand for AI expertise is escalating swiftly, with a striking 37% of U.S. tech job listings as of June 2026 linked to AI skills. This marks a significant increase from just 11% four years ago. The emphasis on AI not only reshapes labor dynamics but also influences economic and investment strategies across major cities.

“Job growth tied to AI will influence most commercial real estate sectors, from offices to data centers to multifamily,” predicts John Morris, president of CBRE’s advisory leasing group for both the U.S. and Canada. Reconfiguring physical spaces will likely become necessary as companies adapt to the demands of an AI-dominated workforce. The implications of this shift ripple beyond technology; they touch on urban planning, infrastructure, and even city policies around development.

Emerging Canadian Markets

Additionally, several Canadian cities are gaining recognition in the emerging tech market arena. Halifax leads the pack, ranking second overall after Huntsville, Alabama, with a 19.4% increase in tech employment over a two-year span, now totaling 20,300 positions. London, Ontario, ranks fifth with a 16.3% boost, reaching 19,300 tech jobs. Interestingly, while Winnipeg houses a larger tech workforce at 23,300, its growth pace over the past three years has been slower, at 14.8%. These patterns suggest that smaller cities are also positioning themselves as viable alternatives for tech companies, although they may not yet compete with larger metropolitan areas regarding scale and investment.

Implications and Future Outlook

The emergence of Canadian cities as significant tech hubs carries far-reaching implications. As the demand for technology talent escalates, companies may be prompted to explore untapped markets beyond the traditional centers. A more balanced growth model could lead to increased job opportunities and economic diversity. However, this depends heavily on targeted policies that support innovation and infrastructure development.

If you're working in this space, pay attention to how these trends unfold. The burgeoning presence of AI jobs, particularly, signals a pivotal shift. Many cities may need to ramp up recruitment and training efforts to meet this demand, or risk being sidelined in an increasingly competitive market. The role of artificial intelligence in tech employment won't just affect hiring practices but may also redefine what it means to have a successful tech ecosystem.