Massive job and wage growth fuelling Vancouver tech, says CBRE report

According to this year’s CBRE Scoring Tech Talent report, which ranks the top 50 tech markets in North America, Vancouver continues to punch above its weight.

The scorecard uses 13 metrics to measure each market’s depth, viability, and attractiveness to companies seeking tech talent, and to tech workers looking for employment. Each criteria is weighted by its relative importance to job creation and innovation — with labour costs for employees, for example, impacting the score more heavily than office rents, as companies spend most of their capital on people.

This year’s rankings saw Vancouver slip from 8th place to 11th. That sets the region behind Toronto and Ottawa, as well as major U.S. tech districts like San Francisco and Seattle — but that position doesn’t tell the full story. According to Alain Rivère, vice president of CBRE’s High Technology Facilities Group, there’s still plenty to celebrate about Vancouver’s maturing tech sector.

“While Vancouver is a smaller tech market, it more than holds its own when compared to the biggest markets in North America,” Rivère says. “Coverage of the report might focus on Vancouver’s small drop in the rankings, but that overlooks the areas in which it’s experienced large amounts of growth — and particularly in its role as a leader in the AI space, which is poised for continued expansion.”

Tech talent growth and concentration

The report outlines that the lower mainland experienced a massive 30.7 percent increase in tech occupations over the past five years. By number, the amount of jobs rose by 23,200, taking the grand total of tech workers in the region to 98,700. That sees Vancouver rank fifth in all of North America for job-growth rate.

The majority of those tech roles can be found in software development, support, database, and systems, with substantial growth in management and engineering-related roles. Again, Vancouver outperformed expectations, with the city boasting the third-highest concentration of software engineers in its tech industry, behind only Seattle and the Bay Area.

Also of interest is the report’s examination of the different age groups within each market’s tech industry. The Greater Vancouver region had the greatest percentage change of workers entering their 30s of all 50 markets, implying that the local tech sector is becoming more mature as workers age into senior roles.

Wages and growth

That new maturity might factor into the large growth in annual wages for tech talent in Vancouver. The current annual pay for tech jobs in the city stands at $109,990, which represents a 36.6 percent increase over the past five years — vastly outstripping inflation. Software developers command a much higher salary, at an average of $120,848 annually (and a 41.5 percent wage growth), which the report says reflects the “strong demand for these roles.”

Industry distribution

Most of Vancouver's tech talent is employed in core high-tech industries. More than half (51.1 percent) of workers are building tech products and services, rather than working tech jobs within other sectors. 

Of those employees working in other industries, though, the majority are in professional services. Other business disciplines employ a balanced share of the remainder, suggesting a diverse demand for tech workers across various fields. 

“One of Vancouver’s strengths is its core high-tech industries,” Rivère says of the report’s data. “Continued expansion of businesses focused in the sector is helping drive demand for tech offices in the city.”

Artificial intelligence growth

As hype around the industry continues to swell, all eyes are on AI. The technology has the potential to become both a major source of economic growth, and, the report points out, real estate demand. The deployment of AI systems across industries is expected to be a catalyst for business and workforce growth, much like mobile internet tech was after the 2007-2008 financial crash — meaning the regions that already show promise in the sector are poised to rocket in the coming years.

The report shows that Toronto, Vancouver, and Montreal are the leading AI-development markets in Canada, accounting for 60 percent of all the country’s AI-speciality tech jobs. AI software and hardware developers are currently the most sought-after tech talent by employers. Most of Vancouver’s AI workforce is concentrated within the local tech industry, suggesting the potential for upcoming growth in the sector.

“The future of Vancouver’s tech sector bodes well,” Rivère says. “Despite falling in this year’s overall rankings, the city is welcoming a growing roster of jobs and a high number of graduates. With a continued growth in the tech talent pool, as well as its position as one of Canada’s top Tech AI development markets, the industry will remain a popular destination for tech employees — which will continue to support real estate market fundamentals.”

Download the Scoring Tech Talent 2024 report for more insights.

Like what you’re reading? Don’t miss out on the facts about Vancouver’s tech ecosystem. Subscribe or become a member now.