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
- Hybrid solidifies as default: Fully remote roles will become rarer outside of specific companies/functions.
- Equity scrutiny increases: Candidates will ask harder questions about cap tables and liquidation preferences.
- AI augmentation becomes table stakes: Every function will be expected to leverage AI tools for productivity.
- Toronto-US gap narrows further: More US companies will build Toronto engineering centers, pushing up local comp.
- 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.