3 Ways To Solve Canada's Tech Talent Shortage

The shortage of high-skilled tech talent remains a significant problem for Canadian companies of all sizes and industries. Digital technology specialists are in short supply, hindering growth and progress. Given that the technology skills gap will persist for the next ten years, businesses that find solutions faster will outgrow this challenge.

We work closely with many tech and non-tech companies that are constantly in demand for technology workers and looking to fill more positions. We have developed several solutions for businesses in Canada. Here, we describe three main ways to address the labour shortages in tech jobs. To provide context, let's start with some statistics on current and future employment prospects in the digital economy.

In Canada, Who Needs Tech Workers the Most (In Numbers)?

Both the private and public sectors in Canada need technology experts. By the end of 2025, employment in the digital economy will reach 2.26 million, or roughly 11% of all employment in Canada (The Information and Communications Technology Council (ICTC), Digital Talent Outlook 2025). This means that the Canadian digital economy will see a demand for 250,000 additional jobs. Canada’s employers will need to fill these additional 250,000 technology jobs by 2025.

Even the Canadian government requires thousands of technology workers that they cannot currently fill. Specifically, about 30 percent, or 7,000, of 21,000 government IT jobs are unfilled. The Canadian government’s chief information officer (CIO) reported that the shortage spans the entire "ecosystem" of technology experts (Policy Options, "Ottawa needs thousands of tech workers to serve Canadians properly," Kathryn May).

3 Ways to Solve the Tech Talent Shortage 

1. Hunt the Best Tech Talent and Pay More
2. Participate in Work-Integrated Learning Programs in Digital Technologies
3. Bring Foreign Tech Workers to Canada via the Global Talent Stream of the Labour Market Impact Assessment

Any of these solutions could work on their own in the short term, depending on employment budgets and other business circumstances. Some businesses might prefer one solution over another. In practice, a combination of these approaches can address the tech talent shortage long-term and serve as a sustainable recruitment model for filling tech positions at all levels.

Solution #1: Race After the Best Tech Talent in Canada. Offer Better Employment Terms.

The term “to race” is used intentionally. Some highly skilled technology workers in Canada are currently employed by your competitors. Businesses can trace and pursue these professionals using simple searches on professional platforms like LinkedIn or through professional referrals.

While this might seem aggressive, it is a reality that those who can offer better employment terms—salary, benefits, work hours, etc.—will recruit and retain the best tech talent quickly. This tactic is effective for large corporations with substantial budgets. Even small companies in niche sectors can benefit if their financial offers are competitive enough to attract highly specialized technology workers.

If your business needs to fill one or two highly specialized tech positions, be generous if you can afford it. It will eventually pay off. If, however, your budget is more limited, the tech vacancy is not urgent, or you prefer not to engage in aggressive talent hunting, here are additional options.

Solution #2: Participate in Work-Integrated Learning Programs in Digital Technologies (The Newest Trend!). Invest in Tech Graduates.

The newest trend is work-integrated learning programs. For example, the Lassonde School of Engineering at York University has launched the first of its kind. Employers can partner with York University to upskill their existing workforce and access new talent pipelines, increasing equity, diversity, and inclusion. While work-integrated learning in digital technologies is new in Canada, it is expected that more institutions will adopt similar initiatives over the next ten years.

A more traditional approach is to invest in training tech students or recent graduates through co-op and internship programs. Canadian universities that employers can collaborate with to intern tech students include the University of Waterloo, University of Guelph, University of Toronto, University of British Columbia, Concordia University, Western University, Carleton University, University of Calgary, University of Ottawa, Queen’s University, and the University of Victoria, among others.

This “skills development through training” and “transition to employment” tactic is effective if a business has other tech workers who can supervise and train junior staff. It allows for savings on wages initially and helps grow tech talent within the organization.

Additionally, businesses can collaborate with specialized organizations that address the tech talent shortage. For example, Mitacs manages projects between the academic community and industry, helping to recruit highly skilled talent. The Natural Sciences and Engineering Research Council of Canada (NSERC) connects partners in industry, government, and the not-for-profit sector with Canadian university and college researchers who can bring young talent to R&D collaborative projects.

Solution #3: Bring Foreign Tech Workers to Canada Through the Global Talent Stream.

Employers can bring tech workers from abroad to address immediate and urgent talent needs. The Canadian government is aware of the tech talent shortage and has launched the Global Talent Stream (GTS) program, allowing Canadian employers to hire highly skilled technology professionals from abroad quickly.

This two-stage process typically takes one or two months, depending on the nationality/country of residence of the foreign worker. First, employers must apply for a Labour Market Impact Assessment (LMIA) under the Global Talent Stream (GTS) Category A or B. Upon LMIA approval by ESDC/Service Canada, the temporary foreign worker must apply for a work permit to come to Canada.

Hiring through the GTS LMIA provides employers with a loyal and dedicated technical workforce. For three years (the duration of the work authorization), a temporary foreign worker (TFW) must work for the employer specified on their work permit document. TFWs are not allowed to change employers within that period. Employers wishing to retain foreign employees can sponsor their permanent residence visa or renew their work permit through a subsequent GTS LMIA application.

To bring foreign tech workers to Canada, businesses must be operational and financially able to pay salaries. There are other nuances of eligibility and application processes under the GTS.

We work with various innovative and technology companies, including start-ups and established firms. There are several scenarios when they decide to bring (or retain) foreign tech labor to/in Canada:

• Employers work with freelance techs (located overseas) they wish to transition to full-time employees in Canada.
• Employers have a team of techs in their foreign affiliates and wish to relocate some highly skilled team members to their Canadian office.
• Employers work with recent tech graduates—foreign nationals already in Canada—and wish to retain them.