The Canadian high-tech labour market has experienced a stunning turnaround over the last five years. Its once-lush cultural landscape has changed to a forbidding desert. A new report from job postings site Indeed paints an alarming picture of the Canadian tech job market. They were down 19 percent as of August 2025 relative to the levels observed in early 2020. This dip is indicative of a much bigger trend that’s hitting the tech sector like a tsunami. The U.S., U.K., France and Germany are all seeing a much steeper drop in the job postings.
Despite its successful tech job market, research finds that Canada is experiencing a tech recession. Its decline isn’t quite as steep as that of the other major economies. Indeed’s analysis was uniquely positioned to shed light on this important transition taking place in the sector, focusing specifically on the job postings data on its platform. Technical roles, especially software engineers, have been hit hard during this downturn. This seemingly small change is indicative of a broader trend among the tech industry’s talent acquisition operations.
Curiously enough, despite this large of a drop in tech job postings overall, Indeed discovered that hiring for AI-related positions is still booming. The introduction of the chatbot ChatGPT in late 2022 was the match that set off an explosion of excitement around AI technologies. Consequently, demand for jobs in the growing AI sector has increased exponentially. Companies are scrambling to hire artificial intelligence specialists. Despite layoffs and hiring freezes elsewhere in the tech world, they continue to recruit heavily for this area.
The study underscores that Canada’s decline in tech job postings is measured against pre-pandemic levels, emphasizing the stark contrast between the boom experienced prior to 2020 and the current challenges faced by the industry. AI-related job openings are increasing at an impressive staggering rate of nearly 80% per quarter. We see in this trend that employers are proactively responding to the evolving technological landscape.
Yet Indeed’s findings—as well as research by others—show a paradoxical job market. It’s a confusing moment as some segments of the tech industry are booming while others are seeing deep cuts. The data highlights the dichotomy within the industry, as companies pivot towards advancing technologies like artificial intelligence while grappling with reduced hiring for traditional software engineering roles.
