As the tech industry slowly expands beyond the Bay Area and New York City, many investors and entrepreneurs are pushing for warmer locales like Austin and Miami to become the next great tech metros. Sure, these cities are hot (figuratively and literally) but they are nothing in comparison to the developing tech hubs located in Canada’s chillier climes.
Every year, Canada attracts tens of thousands of STEM workers from outside nations through permanent residency and temporary foreign worker visas.
Tech giants have swiftly expanded their operations into Canada, driven by immigration policy, talent pools, and other factors. In part, big American tech firms came to Canada because the cost of talent was lower.
The average yearly compensation for a computer software developer in Toronto, according to Hired, was $117,000 Canadian dollars in 2020 (about $90,000 US), compared with $165,000 in Silicon Valley.
Canada’s welcoming immigration pathways are another major reason that so many tech companies flock north. Canada, like other countries in the region, has been drawing a large number of skilled labor from abroad.
Every year, Canada attracts tens of thousands of STEM workers from outside nations through permanent residency and temporary foreign worker visas.
Whatever the reason, more and more companies are popping up in Canada. Here’s what you need to know about which Canadian cities have become tech hubs and which US companies are heading north.
Toronto and Halifax are booming tech hubs in Canada
Silicon Valley has become outrageously expensive, but Toronto is a much more cost-effective alternative.
Toronto also has a pull factor: it’s become a worldwide AI center because of its status as the home of deep-learning pioneers who attract other top minds.
Toronto's technology sector is also expanding at a more rapid pace than any other hub in the United States.
Toronto is now the third-largest technology hub in North America, thanks to years of investment from local universities, government agencies, and Canada’s flexible and responsive immigration policies.
Toronto’s technology sector is also expanding at a more rapid pace than any other hub in the United States.
In the five years preceding, Toronto had added more technology employment than San Francisco, or any other US metropolis. Unlike many cities, Toronto is more likely to have the resources required to continue this development.
Two renowned universities in Canada’s Ontario province, the University of Toronto and the University of Waterloo, are located in this developing tech hub. Ontario’s University of Waterloo was recently recognized as one of the world’s top ten universities when it comes to alumni who have launched billion-dollar businesses.
Local institutions in and around Toronto are working hard to nourish the tech industry.
The University of Toronto is establishing a high-tech innovation center with an endowment of $100 million from local businesspeople.
And Ontario has just passed a law that prohibits employers from enforcing noncompete clauses that encourages staff to establish their own businesses.
About 1,800 kilometers to the east, a second Canadian tech can be found: Halifax.
Halifax's growing tech industry is said to be at the heart of Canada's digital transformation, turning Nova Scotia into one of the country's hottest technology hubs.
Nova Scotia is amid a metamorphosis.
Not long ago it was regarded for its traditional resources industries and aging population, but today the province is home to hundreds of new tech businesses and companies, a substantial training initiative, and an increasing population.
Halifax’s growing tech industry is said to be at the heart of Canada’s digital transformation, turning Nova Scotia into one of the country’s hottest technology hubs.
A growing network of startups, venture capital, and government support is creating jobs and buoying the economy.
According to global real estate firm CBRE, the technology workforce in Halifax has increased by 24% in the last five years. CBRE’s 2021 Scoring Tech Talent ranked the city seventh on a list of 25 emerging tech markets in North America, just after Albany and ahead of Providence.
Nova Scotia’s $2.5 billion tech sector now employs over 26,000 people. Wattpad, a Toronto-based digital entertainment firm, announced in late 2019 that it will create a second headquarters in Halifax. The company now employs 30 people in the Halifax area and plans to increase that number to 100 within five years.
Last spring, the Nova Scotia government announced $16.8 million in funding to develop computer science programs at four universities. This is a major sign that this province’s tech sector will continue to grow!
Companies like Twitter and Pinterest are leading the charge in Canada
The amount of money invested in new Canadian technology companies is still modest when compared to Silicon Valley.
According to a recent study by Tracxn, investors will pump $132 billion into Silicon Valley technology start-ups in 2021 and 2022.
Compare that to Toronto where about $5.4 billion was invested in the tech industry.
For now, less investor money is coming into Canada, but money will eventually follow the talent because the real driver of a tech hub is talented people.
Many of these businesses are establishing themselves in Toronto to access some of the planet's top technical talent and to get closer to their Canadian customers.
People who are already on temporary visas can now apply for permanent residence in Canada with relative ease.
With the Global Talent Stream (GTS), Canada has made it easier for foreign professionals to immigrate to the country. The program aims to speed up the entry of foreign workers with specialized talents.
This all adds up to a highly trained Canadian labor force of 900,000 computer-related professionals. This easy availability of overseas experts is extremely appealing to IT businesses looking for new talent.
Plenty of American tech companies have caved to Canadian temptation and have moved into Canada to open up or greatly expand their tech offices.
It should also be noted that although Canada and the United States are culturally similar, many people believe that Canada is more welcoming to immigrants.
Microsoft leased four floors of new office space in a 50-story glass building in downtown Toronto’s financial district, and Google, Apple, and Amazon were already in adjacent buildings. These anchor firms have expanded to Toronto in search of engineers that are already there, but they also believe the talent pool will expand.
In the last year, Twitter has hired more than 100 engineers in Toronto, tripling its Canadian staff.
Household internet names like DoorDash, eBay, and Pinterest established similar presences in the city, as did burgeoning artificial intelligence firms Cerebras, Groq, and Recursion Pharmaceuticals.
Many of these businesses are establishing themselves in Toronto to access some of the planet’s top technical talent and to get closer to their Canadian customers.
But there are plenty of other reasons for you to consider expanding into Toronto, including simply being close to the US which makes coordinating with American and Canadian-based teams easy.
It should also be noted that although Canada and the United States are culturally similar, many people believe that Canada is more welcoming to immigrants.
Did you know that almost half of the people in Toronto were born in another country?
In the end, establishing a presence in Canada offers you access to a talented workforce and a pleasant environment. Are you ready to expand your business to Canada?
Syndesus can help you plan your expansion to Canada
Canada’s tech industry is booming!
The country’s talented workforce and welcoming environment are among the reasons why businesses are flocking to Canada. If you’re interested in expanding your business to Canada, Syndesus can help.
Syndesus acts as the employer of record, legally hiring the worker on behalf of the US employer, and taking care of the billing, HR, legal and other paperwor
Syndesus helps individuals relocate to Canada and continue to work remotely for their US employer, especially those in the US in H-1B, F-1 OPT, or other status with no sure future in the US.
We specifically support small and mid-size US companies that don’t have an office in Canada.
That’s because a professional employer organization (PEO), Syndesus acts as the employer of record, legally hiring the worker on behalf of the US employer, and taking care of the billing, HR, legal and other paperwork.
And if you’re looking for a new tech job in Canada and want to work for a Canadian company, Path to Canada, a service provided by Syndesus, can match you with Canadian employers that will sponsor you for a work visa.
So, whether you’re moving to Canada with your current US job through our PEO service, or if you’re looking for a new job with a Canadian company via our Path to Canada services, Syndesus can help you from start to finish.
Reach out to us to learn more!
