Tyler Swabey
Mar 31, 20234 min
Updated: Apr 3, 2023
Introducing our newest monthly series - the Talent Market Snapshot! Our aim is to offer you a speedy overview of the Canadian labour market over the past 30 days. Each month, we'll be highlighting workforce trends, tech investment updates, and sharing the biggest stories that have had a major impact on the job market and tech industry. Don't forget to check out our monthly Artemis Update series for an even closer look at what's happening in the Canadian tech scene on the ground level.
Canadian Labour Market Snapshot
💼 5.0% unemployment rate, just shy of the record low of 4.9%
🤖+2.1% (+84,000) employment in the tech industry, highest among all industries
🌱 22K net-new jobs across all industries
💰 5.6% YoY wage growth, reaching $33.16 in Feb
👩🏻💻 60.8% employment rate for women aged 55-64, a record high
💻 18.6% of all job openings are remote roles
👇 Click images to enlarge
Sources:
Labour Force Survey - February 2023, Statistics Canada
Reviewing The State Of The Labour Market – February 2023, Read Passage
February Forecast Update, Conference Board of Canada
Monthly jobs and employment report, Canada, Adecco
Employment in Canada Continues its Upward Trend, Bevertec
Tech Investment Trends in Canada
2022 Q4 vs 2023 Q1 (Jan 1 - March 31)
📉 -64.2% decrease in total tech investment
📉 -8.9% decrease in Series A+ deal volume
📉 -28.4% decrease in Series A deal size
📉 -42.1% decrease in Seed deal volume
📈 53.7% increase in Seed deal size
👇 Click images to enlarge
Source: Briefed.in Canadian tech ecosystem trends
Analysis and impact on the tech labour market
The decline in tech stocks and the Nasdaq's second-worst quarter since the 2008 financial crisis have prompted venture capital firms like Sequoia Capital and Y Combinator to advise startups to prepare for worsening conditions. The poor public market performance of tech companies is starting to significantly impact VC investing, in contrast to the bullish market of 2021. Startups are now focusing on extending their cash runway to last at least two years, anticipating less favourable future financings. This situation is causing significant changes in the tech labour market, with companies slowing down hiring processes, and layoffs occurring in both public and private tech firms to reduce costs and extend their cash runway.
As a result, fewer job openings and increased competition for available positions are expected, along with potential wage stagnation or decline due to reduced demand for tech talent. A shift in skill demand may also occur as companies prioritize cutting costs and improving efficiency. However, opportunities might still arise for top talent to join companies that seize the chance to hire skilled professionals made available by hiring freezes and layoffs at other organizations.
Adding to these challenges, the recent closure of Silicon Valley Bank (SVB) in Canada has impacted the Canadian tech ecosystem, causing concerns about access to funding for Canadian startups. This closure may further exacerbate the struggles faced by startups and the tech labor market in the short term.
Read more about the impact of the SVB closure on the tech labour market in our story here.
Despite these challenges, the tech industry has historically been resilient, and new opportunities are likely to emerge as the market adapts to these changes. Venture firms emphasize that great companies can emerge from difficult times, and opportunities still exist to build and invest in influential technology companies.
Top Stories in Canadian Tech
♻️ Green is the colour of the 2023 federal budget, with the Liberal government offering huge clean-energy and manufacturing incentives in an effort to keep up with billions of dollars the U.S. is doling out.
🤖 Canadian AI governance leaders among an influential group of signatories backing an open letter to pause the training of AI systems more powerful than GPT-4 for at least six months, to develop shared safety protocols for advanced AI design and development that are overseen by independent outside experts.
🍁 At the C100 Summit, Canada’s tech leaders are optimistic despite the chill.
🏦 The collapse of Silicon Valley Bank (SVB) could have a cooling effect on Canada's start-up industry.
Special Feature:
⚡Dear Artemis Lightning Round ⚡
Dear Artemis,
I’m interviewing with a PE-backed company. I’ve always worked in VC-backed companies. What are some key differences I should be aware of?
Great question! PE-backed companies tend to be different in these ways:
Larger, more mature organizations
The tech company has proven product-market fit and reliable revenue
Often more security and stability in the org’s growth, and access to capital
Bigger focus on sustainable growth vs “growth at all costs”
Bigger focus on maintaining healthy levels of spend
More experienced leadership teams (and often non-founding executives)
M&A is more likely, as PE firms typically are looking to increase valuation and eventually sell
The PE firm typically has 100% ownership of the company
VC & PE backed orgs have similarities, too. Including:
Both VC and PE investors often provide operational support
Access to their talent network
An evolutionary view of talent, ie wanting to keep great talent within portfolio companies
Artemis Canada is a boutique executive search firm specializing in placing top talent in the tech sector across Canada, the United States, and Europe. Our team of experienced recruiters has a proven track record of finding exceptional candidates for a variety of roles, from C-suite positions to high-demand individual contributors.