Despite mass layoffs across many technology companies over the past two years, most Canadian provinces saw strong employment growth in the sector in 2024. Just not B.C.
B.C. is one of three provinces that experienced a net job loss in its technology industry, with 249 fewer jobs in 2024 compared with 2023, according to a recent report published by CompTIA, a U.S.-based trade association for the IT industry, titled State of the Tech Workforce Canada.
In contrast, Ontario and Alberta had an employment gain of 17,837 and 6,083, respectively. Other provinces experienced job gains ranging from 31 to 1,565 jobs. Joining B.C. in the loss column were New Brunswick (-372 jobs) and Newfoundland and Labrador (-551 jobs).
“It’s disappointing that they lost jobs, but it’s not a big surprise,” said Stephanie Hollingshead, CEO of TAP Network, the human resources association for B.C.’s tech sector.
Last year was a tough time for the technology industry in B.C., with widespread workforce reductions that continued from 2023. Contributing factors included a post-pandemic correction, economic uncertainty driven by higher interest rates and U.S. tariff threats, and shifts in investment priority from growth to profits, according to Hollingshead.
“We also saw less venture capital coming into the province last year,” she said.
However, while other provinces also faced these challenges in the tech industry since the pandemic, most of them managed to recover and have their job growth outpace the loss, according to data from the CompTIA report.
The total number of tech employees in Canada increased annually by 27,500 in 2024, up 1.9 percentage points, reaching more than 1.4 million workers.
B.C., which had the third-largest tech employment among the provinces at 198,145, recorded negative growth.
Hollingshead said one factor in the gap could be the relocation or expansion of B.C. tech companies and talent to other provinces.
“Within B.C., we have seen some of the tech companies open offices in other provinces. Alberta, in particular, has been luring away some tech companies,” she said.
“Whether it’s office space or taxation or a friendlier business climate, or cheaper housing, they’re doing what they can to lure companies over there.”
B.C. facing competition for tech jobs
To support Alberta’s ambition to become a globally recognized technology hub by 2030, the province has announced a $100-million investment to attract more AI-focused tech companies and offers to fast-track immigration for tech talent, among other initiatives.
Clio (Themis Solutions Inc.), a leading Vancouver-based legal technology company, has been expanding its Calgary office since it opened in 2019.
Fortinet Inc. (Nasdaq:FTNT) is a large U.S.-based cybersecurity firm founded in Burnaby, where its global research and development hub remains. It announced plans last year to invest $30 million to create a cybersecurity tech hub in Calgary, creating 165 new jobs.
And last year, for the first time, Alberta surpassed B.C. in terms of attracting investment dollars, drawing a total of $383 million across 41 deals compared with $288 million across 43 deals for B.C.
“Companies in Alberta are still laying people off … but on aggregate, there are just more companies hiring and creating more jobs, and that ultimately makes that difference,” said Ray Walia, CEO of Vancouver-based incubator Launch Academy.
Walia said the startup ecosystem in Vancouver has fallen significantly behind that of other cities around the world, so when later-stage tech companies reduce their workforce, there aren’t enough growing or new companies to absorb the displaced employees.
He said Vancouver is lagging behind on many fronts, including accelerators, incubators, the business environment, and early-stage capital to attract entrepreneurs into this ecosystem and support them in growing.
“Everywhere around the world, it’s a fight for talent, as countries and cities try to transition from a resource-based economy to a knowledge-based economy,” said Walia.
“We always said: ‘It’s our fight to lose; don’t take your foot off the gas.’ I think B.C. took its foot off the gas.”
Cautious positive outlook for 2025
Tech recruiters and insiders expect to see more jobs in the tech industry in B.C. in 2025, although optimism remains cautious.
Hollingshead said reductions are ongoing in the tech industry, especially in the creative tech sector, which boomed during the pandemic. But she added recent layoffs are smaller than last year’s.
Companies began the year conservatively, delaying spending and limiting hiring to critical roles, as they monitored the May federal election and U.S. tariffs, Hollingshead said. Although digital services are exempt, tariffs are affecting many tech companies’ clients.
Still, Hollingshead said she is encouraged to see more hiring in the province in the last few months.
“We’re seeing HR jobs showing up, which is a sign of hiring when they’re hiring for HR folks,” she said.
Ilya Brotzky, CEO of tech recruitment firm VanHack, said the market is slowly moving back toward pre-pandemic levels.
“I think it’s a more stable economy. … Interest rates have been decreasing in Canada and not going up in the U.S,” he said.
“And also, a lot of the AI boom has been causing companies to invest in R&D [research and development] and to build new products.”
Sectors such as AI, fintech, cleantech and agritech are projecting stronger growth this year and next, according to Hollingshead.
Some notable investment activity has already taken place in 2025. 4AG Robotics, an AI-powered mushroom harvesting firm based in Salmon Arm, B.C., closed a $40-million financing round in July. And General Fusion Inc., a Richmond-based fusion power developer, announced US$22-million financing last month.
“I’m hopeful that 2025 will show some more growth,” said Hollingshead.
