Canada’s tech job market in decline: Indeed report
Canada’s technology job market has shifted from one of the country’s hottest sectors to a prolonged hiring freeze, according to new research from job postings site Indeed.
Canada’s technology job market has shifted from one of the country’s hottest sectors to a prolonged hiring freeze, according to new research from job postings site Indeed.
A report from Indeed’s Hiring Lab shows Canadian tech job postings on its platform were down 19 per cent this August compared with early 2020 levels.
The decline follows a pandemic-era boom when demand for developers, engineers and IT staff more than doubled by early 2022.
“The earlier plunge in tech job postings might’ve been cyclical, but AI could be stalling a rebound,” wrote Brendon Bernard, senior economist with Indeed, in a blog post published Tuesday.
The analysis found that about half of the drop in postings occurred before late 2022, when ChatGPT was released, suggesting the downturn was initially tied to the end of pandemic hiring and central bank rate hikes.
But advances in artificial intelligence may now be holding back a recovery, with employers finding automation can replace some tasks once done by junior tech workers.
The slowdown has hit software engineering jobs hardest, while postings for AI-related roles are elevated.
Senior-level tech postings, while down from their 2022 peak, remain about five per cent higher than before COVID-19.
Entry-level tech postings are down 25 per cent.
The number of Canadians working in professional tech and mathematics jobs has plateaued since 2022, though employment remains relatively high.
The report suggests the hiring freeze has weighed more on job seekers than on current workers.
Indeed said the hiring freeze has entered its third year, underscoring how quickly the sector’s fortunes have reversed.
“As of mid-2025, the Canadian tech hiring freeze has entered its third year, a sea change from the booming conditions in the immediate aftermath of the pandemic,” the Hiring Lab report said.