The impact of technology is reshaping all aspects of the economy. From intelligent resource extraction to financial services innovations (mobile payments and the blockchain) to regenerative medicine and personalized healthcare, technology advancements are redefining business models and processes for organizations of all sizes. This expanding adoption creates an ever-growing demand for a skilled, diverse, and adaptable workforce.
In Canada, the tech sector has become a pillar of the national economy, creating over 1.4 million jobs for Canadians. Companies across Canada are investing in new technology, innovating to provide solutions and new business opportunities for every industry, and in the process, creating high-paying tech jobs.
British Columbia has established itself as one of the leading tech ecosystems in the country, boasting a host of successful companies in information and communications technology, interactive and digital media, cleantech, lifesciences, and engineering services. Growing by a compound annual growth rate (CAGR) of 6% over a 10-year period ending in 2014, BC’s tech sector revenue growth has outpaced tech sector revenue growth in Ontario and Québec.1
Spurred by business growth and employer demand for top talent, BC's tech sector employment, defined in this report by 32 key occupations, reached approximately 149,000 jobs in 2015, and is on pace to grow to more than 165,500 by 2021, adding 16,500 net new jobs at an average annual growth rate of 1.8%.
Demand for talent is most acute for a collection of information technology-centric roles, including systems engineers, programmers, and software developers. However, as BC’s tech companies continue to grow and extend their market reach, roles for experienced management, business development, and sales and marketing professionals are also becoming increasingly important to fill.
The rapid expansion of the BC tech sector will result in a demand for more than 47,000 additional workers by 2021. However, based on the current employment growth and talent availability numbers, only 16,500 of these vacancies will be filled. 30,500 tech-related job openings will remain vacant.
To meet the soaring demand for tech talent, BC policy makers, in partnership with industry and higher education institutions, must take action. There are three talent sources that must be actively supported in order to resolve the demand and supply imbalance: new entrants (defined as graduates from BC's post-secondary institutions), immigrants, and other local supply that includes job transitioners and members of underrepresented demographic groups.
For each of the labour sources, there are large gaps between what BC is on track to produce and what is needed by the tech sector. Meeting the accelerated employment demand of BC"s tech sector requires the following changes:
NEW ENTRANTS - 12,500 more graduates from BC post-secondary institutions will be needed by 2021 to meet tech sector demand.
IMMIGRANTS - 8,500 more immigrants than are currently projected to arrive by 2021 will be required to meet tech sector demand.
OTHER LOCAL SUPPLY - 9,500 more career transitioners and people from underrepresented groups will be needed by 2021 than are currently expected to be available.
These gaps need to be filled, but the solution goes beyond quantity alone. Tech talent must also be calibrated to the needs of BC’s tech companies. This means individuals entering the sector must possess a blend of technical and ‘soft’ skills.
Organizations need employees that can produce value and hit the ground running by quickly assuming the responsibilities of their role, understanding organizational needs and company culture and building client relationships.
The demand and supply imbalance and the gap between employee skills and company needs must be resolved. To ensure BC’s tech sector reaches its potential, this report recommends the following actions:
- Increase the capacity of post-secondary programs to produce additional graduates each year in tech-relevant programs as well as non-tech
- (e.g. business, communications and arts) programs.
- Increase the supply of immigrants and foreign workers for mid, senior and specialized roles.
- Increase investment in retraining, upskilling, and retooling initiatives, enabling local non-tech and underrepresented workers to transition to the tech sector.
- Increase investment to significantly expand co-op and experiential
- learning opportunities in both post-secondary and K-12, with an emphasis on developing students’ interpersonal, communication, and team working skills.
- Increase investment in pre- and post-arrival skills development programs for foreign talent to provide mentorship and training in management, leadership, business development, communication, and other interpersonal skills.
- A company‘s ability to innovate, compete, and respond to an evolving market is determined in large part by the presence and quality of talented employees. In this domain, the BC tech sector is facing a crunch.
The implementation of this report's recommendations will help to mitigate the tech sector’s impending talent shortfall and to support higher tech sector growth, provided there is cooperation and collaboration among BC’s government, tech employers, post-secondary institutions, and other key stakeholders.