# State of Toronto Tech Hiring: 2025
After the corrections of 2023-2024, Toronto's tech hiring market has found its footing. Here's what we're seeing.
## Market Temperature
**Hiring velocity**: Up 15% from Q4 2024. Companies are hiring again, particularly for revenue-generating and product roles.
**Layoff frequency**: Down significantly. The correction phase is largely complete.
**Time to fill**: Averaging 6 weeks for senior roles, down from 10 weeks in early 2024.
## Hot Areas
**AI/ML Engineering**: Demand far exceeds supply. Companies are paying premium rates for applied ML talent.
**Growth Marketing**: As companies refocus on efficient growth, experienced growth marketers are in demand.
**Staff+ Engineering**: Companies want senior ICs who can drive technical direction without management overhead.
## Cooling Areas
**Junior Engineering**: Entry-level hiring remains constrained. Companies prefer experienced hires.
**Recruiting/HR**: After layoffs, many teams remain lean and aren't rebuilding TA functions.
## Salary Movement
Compensation is stabilizing after the pandemic inflation spike. We're seeing: - 3-5% increases for standard merit raises - 15-25% increases for job changes (down from 30-40% in 2021-2022) - Flat or declining total comp at levels where equity has lost value
## 2025 Predictions
1. **Hybrid solidifies as default**: Fully remote roles will become rarer outside of specific companies/functions.
2. **Equity scrutiny increases**: Candidates will ask harder questions about cap tables and liquidation preferences.
3. **AI augmentation becomes table stakes**: Every function will be expected to leverage AI tools for productivity.
4. **Toronto-US gap narrows further**: More US companies will build Toronto engineering centers, pushing up local comp.
5. **Quality over quantity**: Companies will hire fewer, more senior people rather than building large junior teams.
*Based on Stem Connect data and conversations with 50+ Toronto tech leaders.*