Quarterly Digital Economy Pulse: Workforce Development in Canada

June 2026

Research by

Preface:

The Information and Communications Technology Council (ICTC) is a neutral, not-for-profit, national centre of expertise with the mission of strengthening Canada’s digital advantage in the global economy. For more than 30 years, ICTC has delivered forward-looking research, practical policy advice, and capacity-building solutions for individuals and businesses. The organization’s goal is to ensure that technology is utilized to drive economic growth and innovation and that Canada’s workforce remains competitive on a global scale. ictc-ctic.ca info@ictc-ctic.ca

TO CITE THIS REPORT:

Maryna Ivus, Todd Legere, Christopher Lindstrom, Sheldon Lopez, and Faun Rice. Digital Economy Pulse: Workforce Development in Canada. Information and Communications Technology Council (ICTC), 2026. Ottawa, Canada.

Author order is alphabetized. The opinions and interpretations in this publication do not necessarily reflect those of the Government of Canada.

Acknowledgements

The ICTC team appreciates all contributions made to this report by our interviewees, advisory committee members, partner organizations, and other subject matter experts. We would like to acknowledge all contributors to this report, along with the following specific individuals:

• François Burra, Digital Decarbonization Consultant

• Anika Choudhury, Machine Learning Engineer (project lead) at M2M Tech

• Mario Daigle, Executive in the Software Industry

• Almas Danish, Manager of Technology and Health Research at Edmonton Global

• Jason Della Rocca, CEO at Execution Labs

• Michelle Grady, President at Sony Pictures Imageworks

• Hubba Khatoon, Regional Innovation Director at Canadian Food Innovation Network

• Chris Maltais, Senior Software Engineer at Shopify

• Lisa Muise, Senior Director of Human Resources at CloudKettle

• Matthias Oschinski, Senior Fellow at Georgetown University

• Owen Sagness, CEO at Digital Nova Scotia

• Mark Uhrbach, Chief, Digital Economy Statistics at Statistics Canada

• Christy Valente, Director of Business Strategy Development

• Florian Villaumé, CEO at techNL

• Jeff White, Creative Director at Industrial Light & Magic

• Waqas I. Yousafzai, Trade Commissioner at Global Affairs Canada

Abbreviations

ECA Educational credential assessment

GDP Gross domestic product

HR Human resources

ICT Information and communications technology

ICTC Information and Communications Technology Council

NAICS North American Industry Classification System

NOC National Occupational Classification

OECD Organisation for Economic Co-operation and Development

WIL Work-integrated learning

Executive Summary

Canada’s digital economy is a driving force for national productivity, innovation, and global competitiveness. Employing 2.4 million people, it reflects the country’s evolving workforce. This briefing, part of ICTC’s Quarterly Digital Economy Pulse series, explores the composition of Canada’s digital economy and offers recommendations to build a stronger, more inclusive, skilled talent pipeline.

Despite progress, ongoing representation and equity gaps remain in Canada’s digital workforce. While women now make up 32.6% of the digital economy workforce, their representation has only increased by 2.1 percentage points over nearly two decades from 2006 to 2024. Additionally, as of 2021, just 1.4% of employed Indigenous-identifying individuals worked in technology roles.

Immigrants made up 37% of the digital economy workforce in 2024, marking a significant 11-percentage-point rise since 2007. However, many professionals with international education remain underemployed despite their strong technical skills. While employers express interest in hiring newcomers who could fill the gap in mid- to senior-level talent, they also prefer workers with Canadian workplace experience that can contribute immediately.

At the same time, youth remain underrepresented in the digital economy. Youth make up just 6.7% of the workforce in the digital economy compared to 13.2% in the overall economy. Factors such as

the rising demand for advanced education and practical experience contribute to this issue. Employers report that while post-secondary education remains a minimum requirement, there is an increasing need for practical experience, micro-credentials, and upskilling opportunities. Work-integrated learning (WIL) programs are essential pathways for students and new graduates to gain hands-on experience and establish connections with employers.

To address representation challenges and the shortage of skilled workers, Canada must strengthen its talent pipeline by continuing to invest in work-integrated learning programs, incentivizing investment in employer-sponsored training, and enhancing the integration of internationally educated professionals. Focusing on these areas is essential for building a strong digital workforce, supporting inclusivity, improving the country’s global competitiveness, and fostering long-term prosperity.

Key Takeaways

Equity-deserving communities remain underrepresented in the digital economy. Women’s representation increased only slightly over nearly two decades, from 30.5% in 2006 to 32.6% in 2024. As of 2021, just 1.4% of employed Indigenousidentifying individuals were working in technology occupations.

Youth participation in the digital economy has declined over the past two decades, while the share of workers aged 55 years and older has grown.

As of 2024, immigrants accounted for 37% of the digital economy workforce, but many were underutilized despite possessing technical skills.

Educational attainment in the digital economy has steadily increased with the proportion of workers holding graduate degrees rose from 11% in 2006 to 20% in 2024. During the same period, the proportion holding bachelor’s degrees rose from 29% to 40%. University degrees are increasingly seen as a baseline qualification.

Employer-led upskilling and WIL programs are crucial for bridging skills gaps and providing new graduates with practical experience.

Introduction

Canada’s digital economy is a key driver of innovation and growth — shaping the country’s future and influencing the way Canadians live, work, connect, and create. The digital economy relies on a diverse workforce with a wide range of backgrounds, skills, and experiences, which has been essential for driving advancements across industries and helping Canada compete on the global stage. Yet, as the digital economy grows and evolves, it continues to face persistent challenges around representation, equity, and the full integration of available talent. An analysis of demographic information in Canada’s digital economy reveals a few points of concern, including a lack of equitable representation and compensation, an aging workforce that isn’t yet being replaced with adequately skilled entrants to the field, and the underutilization of skills and knowledge brought to Canada by newcomers.

To begin addressing these challenges, Canada must pursue a workforce development plan that will support a more inclusive and well-structured talent pipeline leading to a stronger, more resilient economy. This report provides a comprehensive look

at the talent powering Canada’s digital economy, explores the composition of the digital economy, gaps and barriers facing digital talent, and offers strategies that can help build a more inclusive, innovative, and competitive workforce.

Quarterly Digital Economy Pulse: Digital Adoption in Canada, March 2026

Canada’s digital economy is a critical lever for the nation’s overall productivity, innovation, and global competitiveness. This briefing, part of ICTC’s quarterly Digital Economy Pulse series, outlines key opportunities and challenges shaping digital adoption across the Canadian economy.

Who Works in Canada’s Digital Economy?

GENDER REPRESENTATION AND EQUITY GAPS

The Canadian digital economy benefits from the expertise of workers from diverse backgrounds; however, significant representation and equity gaps persist. The representation of women in the digital economy has improved only marginally over the past two decades, rising to 32.6% in 2024 from 30.5% in 2006 (Figure 1).1 Similarly, individuals from Indigenous communities in Canada have long been underrepresented in technology occupations: in the last census, only 1.4% of individuals who identified as Indigenous worked in tech.2

Inequity also exists for those employed in technology occupations. A recent analysis found that the gender pay gap in technology roles is widening. In the 2021 Census, men in Canadian technology jobs

earned, on average, $20,000 more than women in those jobs, while the gap was $7,200 in 2016.3 The same report indicated that, while workers from racialized communities were more likely to occupy technology positions, they also earned $14,200 less than their non-racialized counterparts on average.4 Technology workers from Indigenous communities, meanwhile, experienced a salary gap of $14,800 in the most recent census.5

It should be noted that the 2021 Census allowed respondents in Canada to identify as non-binary, but there is still insufficient data to make broad observations or draw conclusions about the experience of non-binary workers in Canada’s technology sector.

1 Prior to 2022, the Statistics Canada Labour Force Survey used the variable “sex at birth.” After January 2022, the survey began collecting both sex at birth and gender. ICTC uses the terms “women” and “men” to encompass data from both time periods. Data for non-binary labour force participants is collected, but Statistics Canada typically suppresses this data under a certain proportion for privacy reasons.

2 Angus Lockhart and Viet Vu, “Canada’s Got Tech Talent: Diversity of Canada’s Tech Workers,” The Dais, June 2024, 6, https://dais.ca/wp-content/ uploads/2024/06/Canadas-Got-Tech-Talent-Chapter-02.pdf

3 Ibid., 6.

4 Ibid., 6.

5 Ibid., 24.

Pathways to Equity: Recommendations to Boost Women’s Workforce Inclusion in the Digital Economy

To ensure economic transformation is inclusive, competitive, and resilient, ICTC’s latest policy brief — in collaboration with Women in Communications & Technology (WCT) — outlines six, evidence-based recommendations for the ecosystem supporting women’s economic empowerment in Canada.

AGE COMPOSITION AND YOUTH PARTICIPATION

The digital economy in Canada is experiencing a shift in its age composition. Over the last 20 years, the proportion of young workers (aged 15–24) has gradually declined from 9.2% to 6.7%. During this same period, the proportion of workers aged 55 and over has increased. While these trends reflect demographic changes in the broader Canadian workforce (where approximately one in five workers is over 55), there are also significant differences. Notably, the digital economy has a higher proportion of workers aged 25–44 than the general economy does.

While 6.7% of the digital economy consists of youth (aged 15–24), the general economy has approximately double that proportion, with 13.2% of Canada’s workers fitting in the 15–24 age group.6 As will be explored later in this report, the digital economy is increasingly made up of occupations that require more education and experience. This may be one reason why young people are underrepresented; many could be delaying their entry into the labour force until after completing a graduate degree program. The rapid acceleration of technological change has also driven a wave of upskilling, leading to more diverse pathways such as higher degrees and specialized AI-related training programs.

6 ICTC analysis, Statistics Canada Labour Force Survey, January 2025 (2024 data).

IMMIGRANT REPRESENTATION AND WORKFORCE INTEGRATION

Both the general Canadian economy and the digital economy have a growing proportion of workers who are immigrants (Figure 3 and Figure 4). In the digital economy, the high proportion of immigrants is likely linked to the Canadian immigration strategy that has historically prioritized education and skills.7 As of 2024, the digital economy employs 885,800 immigrants,8 which constitutes 37% of digital economy employment. This share has increased from 26% in 2007. The percentage of non-landed immigrants9 (temporary foreign workers) has also seen a significant rise. In 2007, 2% of employment in the digital economy was made up of non-landed immigrants. By 2024, this figure had increased to 6%.

Digital economy employers interviewed for this study often had immigrant workers on staff, or were themselves immigrants. However, several also mentioned that they struggle to hire newcomers because these individuals were often unfamiliar with Canadian workplace culture. Many commented that newcomers typically have all the technical skills required to succeed in the workplace but “really struggle with Canadian working culture.”

The underemployment of newcomers to Canada, given their existing technical and professional skills, represents a significant gap in the country’s labour market. As one subject matter expert remarked, “Canada really underemploys the talent that comes into the country… their skills are not being utilized to the full extent.” Several factors continue to contribute to this persistent challenge. Despite incremental progress made in improving the recognition of foreign education, training, and professional credentials, many internationally trained workers still face barriers in having their qualifications fully acknowledged by employers. The underutilization of foreign credentials persists even with initiatives such as Canada’s 2013 educational credential assessment (ECA) process, which was designed to evaluate the equivalence of immigrants’ foreign credentials for skilled worker

applicants. Research shows that the effectiveness of ECAs varies by country of origin, underscoring the need for more equitable assessment practices among employers. At the same time, cultural and institutional factors, such as employers’ preference for “Canadian experience” and uncertainty about how international qualifications translate into local job requirements, further constrain newcomers’ access to roles that align with their expertise. Together, these structural and cultural barriers help explain why many skilled immigrants remain underemployed, even as the digital economy faces ongoing talent shortages.

Addressing this gap can take two forms. Employerside interventions may involve revising hiring and onboarding practices to better recognize newcomers’ credentials and provide time for new hires to adapt to workplace norms. Newcomerfocused strategies, on the other hand, can offer programs that teach relevant skills, such as preparing resumes and cover letters that align with Canadian employer expectations. Progress on either front would help reduce the underemployment and underutilization of internationally trained technology professionals, an important step toward meeting Canada’s growing demand for experienced, mid-career tech workers. Some employers have implemented newcomerhiring strategies within their organizations. One employer mentioned reaching out to an immigrant services association for help with building an intercultural workplace and providing unconscious bias training to support interviews and performance appraisals. “We actually incorporated that into our quarterly leadership review,” the employer noted. They also added, “[An immigrant services association] identified gaps we had, and areas we could improve.” These efforts illustrate how employer-side interventions can help create more inclusive hiring practices and better support the integration of internationally trained professionals.

7 “Attracting Tech Talent to Canada,” IRCC, Government of Canada, last modified April 24, 2024, https://www.canada.ca/en/immigration-refugeescitizenship/campaigns/tech-talent.html

8 According to Statistics Canada’s definition, “immigrant” refers to a person who has been granted the right to live in Canada permanently by immigration authorities. Immigrants who have obtained Canadian citizenship by naturalization are included in this group.

9 A non-landed immigrant is a person from another country who has a usual place of residence in Canada but who has not been granted the right to live in Canada permanently by immigration authorities.

Workforce Composition in the General Economy: Immigrant and Born in Canada, 2007–2024

3: Workforce Composition in the General Economy: Immigrant and Born in Canada, 2007–2024. Source: ICTC calculations using Statistics Canada Monthly Labour Force Survey (January 2025).

Workforce Composition in the Digital Economy: Immigrant and Born in Canada, 2007–2024

4: Workforce Composition in the Digital Economy: Immigrant and Born in Canada, 2007–2024. Source: ICTC calculations using Statistics Canada Monthly Labour Force Survey (January 2025).

EDUCATION AND SKILLS REQUIREMENTS

Workers throughout the Canadian economy and those in technology occupations possess increasingly high levels of education (Figure 5 and Figure 6). Employers interviewed for this study sometimes remarked that they felt university degrees were becoming less significant in their assessments. However, when probed further, this actually indicated that they often regarded postsecondary qualifications as baseline credentials and sought additional proof of experience, certifications, or micro-credentials to showcase extracurricular interests.

One major technology sector employer noted, “Honestly, I think university degrees have less and less weight in evaluations now. To me, it’s what you’ve done… [University degrees] can put you in the pile of people to talk to, but it’s not a fait accompli.” Meanwhile, a cybersecurity employer remarked that they value shorter-term, modular credentials (particularly those provided by postsecondary institutions) as an alternative to degrees and as a means to regain skills when existing

professional qualifications have become outdated: “It’s more the timeline shrinking, so people can retool, reskill, or upskill. You want to do that quickly, in a modular fashion that is applicable to them.” In other words, applicants will still likely need degrees to succeed, employers claim they are valuing post-secondary education less only because it is assumed that applicants possess it.

The following figures show education levels for technology occupations and for all professions in Canada (in aggregate), with variability by role. Note that there is variability by role. A human resources (HR) professional commented, “If you’re doing quantum computing, there’s lots of PhDs in those companies, and that’s necessary. But if you’re in a software company or building games, there’s so many roles where you don’t need a degree.” Another employer added, “We do hire out of bootcamps because really great talent doesn’t need a ton of credentials. But not everyone who comes out of a bootcamp is good.”

High school graduate

Some post-secondary

Trade certificate or diploma

Community college, CEGEP, etc.

University certificate below bachelor-level

Bachelor’s degree

Graduate degree

All Professionals in Canada: Level of Education, 2006–2024

Some post-secondary Trade certificate or diploma

Community college, CEGEP, etc.

University certificate below bachelor-level

Bachelor’s degree

Graduate

It is likely that the increasing proportion of workers in the Canadian economy with higher education correlates with the growing number of immigrant workers because newcomers with higher education are generally prioritized in the immigration process via skilled workforce visas.

Moreover, the makeup of the Canadian and digital economies has evolved over time. For example, employment for software developers and software

engineers is expanding at a faster rate than for user technicians.10 As the economy creates more jobs that demand experience at a rapid pace, the proportion of individuals in higher-experience roles will increase, creating further change.

Ultimately, workers who want to compete in Canada’s digital economy need to know that the average requirements for level of education and experience are on the rise.

10 See Appendix A.