The rise of tech skills in Canada’s workforce: preparing for the digital economy

With technology changing quickly, yesterday’s tech skills may not be the ones in high demand. Palette Skills looks at what’s behind the evolution of digital tech skills in today’s workforce.

The only constant is change

There is only one thing we know for certain and that is that change is constant. This is true about Canada’s digital economy, and about the kinds of high-value digital tech skills workers need to prepare for the future. Technologies like artificial intelligence and automation are affecting every part of the economy. This means that the tech skills employers looked for even a few years ago may not be the ones they’re hiring for now. It also means that no matter what they do, all workers in Canada must get up to speed with key digital skills.

Growth of the tech economy in Canada

It’s no secret that Canada is emerging as a global tech leader, with eight Canadian cities making it onto CBRE’s list of North America’s Top 50 Tech Talent Markets. As Canadian technology companies build and grow, they are transforming our economy. A recent report by the Computing Technology Industry Association (CompTIA) shows that in the last six years alone, 300,000 technology jobs have been added to Canadian economy. It’s also estimated that in 2022, Canadian tech contributed $113.4 billion CAD in direct economic impacts, amounting to about 5.5 per cent of the Canadian economy. 

According to government figures, since 2016 the ICT sector has shown stronger annual growth than the rest of the economy, with a compound annual growth rate of 5.0 per cent over a five-year period, compared with just 1.6 per cent for the economy as a whole.

Digital tech is everywhere

You may think digital technology is just about designing databases or building complicated applications, but the reality is that digital tech is reaching every part of the economy and having an impact on everything we do. The same CompTIA report makes the point that a larger number of people in Canada are employed in the the net tech industry than ever before—that is, in occupations that rely on sophisticated digital technology to do jobs that include everything from farming to mining. This larger sphere of the tech industry means that the kinds of skills Canadian workers need to have both now and in the future are changing.

All jobs need digital tech skills

Two things are changing about digital technology skills in Canada and around the world: 

What does this mean? Simply put, more Canadians in different walks of life need to learn to interact more efficiently with digital technology in the everyday work world, no matter what industry they work in. 

While studies show that the most in-demand digital skills are for general workforce tasks such as word processing or managing business software, they also reveal that more employers are looking for higher-level skills, including integrating AI and other cutting edge technologies into day-to-day business operations. Having workers who know how to adapt and manage new digital technology is critical, because as a recent report from Palette Skills and Deloitte Canada argues, sectors of the economy that fail to adopt new digital tech solutions risk slower growth.

Canadians want to learn digital skills

Many Canadian employers are ready to spend on vital new digital technology but worry that without the right talent, they will fall behind when it comes to their tech adoption goals. That’s a problem, because an ongoing digital skills gap means Canadian businesses risk losing out on the productivity gains offered by AI and automation, and risk being vulnerable to online cybercrime as well

It’s not just employers who want Canadians to build their digital skills. A recent survey by Salesforce Canada found that 81 per cent of Canadians say they do not have the resources to learn the digital skills required by businesses today. While you could be forgiven for thinking this is mostly a concern for older workers, the fact is that as many as 40 per cent of Millennials report they do not feel confident about their digital readiness for today’s work world. 

Mind the gap: ensuring digital equity

A report by Deloitte shows that Canada is falling behind on digital equity, and outlines some of the implications of this growing digital divide. These include gaps in access to digital technology and skills development that impact equity-deserving groups. Ultimately, if people in diverse communities face barriers to learning and using digital technology, it means that Canada’s economy loses out on potential talent. And it means that Canadian employers may not reap the benefits of diversity when it comes to hiring tech talent

Get ready for the future with upskilling

To meet current and future digital talent needs, Canadian employers are increasingly recognizing the value of upskilling their workforces. Not only do upskilling programs like the ones offered through Upskill Canada offer access to rapid and industry-led training, they also give participants a balance of job-specific technical skills as well as the critical professional skills that employers say they need

This kind of balance is important, because tech skills evolve and develop quickly. Being able to learn and adapt as the tech landscape changes is a valuable skill in itself as employers switch from a focus on traditional credentials and hard skills to seeking talent with the kinds of high-level professional skills that will help ensure innovation and growth in tomorrow’s digital economy. 

 

 

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