Booming Canadian tech sector responsible for 7% of national economy, report says

According to a report published by the Brookfield Institute for Innovation and Entrepreneurship, the Canadian tech sector is a formidable source of growth and profit for the national economy.

The tech sector alone was responsible for over $117 billion of Canada’s economic output in 2015, which translates into just over seven percent. Furthermore, it looks like this growth isn’t poised to slow down anytime soon.

All in all, the facts surrounding Canadian technology look pretty impressive. Over 864 thousand Canadians are currently employed across approximately 71 thousand local firms. In total, this represents just over six percent of all Canadian businesses.

It’s also interesting to make comparisons between the success of the Canadian tech sector compared to the progress of the national economy as a whole. A prime example of this contrast exists in the average annual salary of tech sector workers, which totals about $67 thousand, compared to a national average of almost $48 thousand.

Some other points of comparison include the rate of tech sector employees with post-secondary education, which sits at approximately 50 percent, while the national total averages out at 28 percent.

While tech saw some significant gains between 2015 and 2016, it’s not Canada’s fastest growing sector, but in fact, comes in fifth. That honour goes to real estate, rental and licensing, followed by manufacturing, mining, quarrying and oil and gas extraction, construction, and finally, tech.

According to John Ruffolo, the CEO of OMERS Ventures, focusing on tech is critical to ensure the success of the Canadian economy.

“A renewed focus on the tech industry is crucial for Canada’s ongoing prosperity,” stated John Ruffolo, Chief Executive Officer of OMERS Ventures. “Especially considering the volatility and finite nature of the commodities industry, it is critical that we ensure that our tech sector becomes a sustainable source of growth,” said Ruffolo in a statement.

Overall, despite the immense growth of the Canadian tech sector, the majority of this growth is still relatively new. Canada still has a long way to go before tech can be deemed a sustainable and consistent source of prosperity, though Canadians get closer every day.

Related reading: MaRS report cites virtual reality and augmented reality as top trends in Canadian tech

[source]The State of Canada’s Tech Sector, 2016[/source]