CDI Corporation

Canadian tech sector larger than finance, insurance

A new report shows that the Canadian tech sector has a significant impact on national economic growth and employment.

The report, “The State of Canada’s Tech Sector, 2016” published by the Brookfield Institute for Innovation + Entrepreneurship, found that the technology sector directly contributed $117 billion – or 7.1 per cent – of the national economic output in 2015, according to an infographic published by the institute. This economic contribution is higher than those of the finance, insurance, wholesale trade, retail trade, transportation and utilities sectors.

Information and communications technology is largely driving the economic output, with the Brookfield Institute finding that the group makes up 61.2 per cent of the tech sector gross domestic product. The group is followed by architecture, engineering and design at 18.4 per cent.

The tech industry has 864,000 employees in the country, with 5.6 per cent of Canadian employees working in the industry. The average annual wage for a tech worker in the country is $66,950, nearly $20,000 higher than the average annual wage for the Canadian workforce.

“The future of Canada is probably going to be much more linked to the prosperity of the tech sector in the long run, than some of our more traditional industries that are resource based,” said Sean Mullin, executive director of the Brookfield Institute for Innovation + Entrepreneurship, according to the Toronto Star.