Google Raids Threaten Canada's Lead in Artificial Intelligence
bloomberg.com
bloomberg.com
Software engineers are paid relatively poorly in Canada, (Vancouver in particular) - and this is discounting the poor performance of the petro-canadian-dollar.
Oh, and totally tangentially but: how do human beings actually live in Vancouver? The rents and real estate prices are almost as bad as the Bay Area but minus the high paying jobs.
As for why, there isn't enough upward pressure. Vancouver is at least getting a few of the big companies, but they really need to get some big tech in sucking up talent to drive some competition in salaries. Currently if people want money they head south, those who stay are in a market where they can't command the big salaries.
Total guess, there isn't a critical mass of companies whose owners, executives and shareholders are missing out on billions in profit because they can't find enough sw engineers.
Said another way (a guess again), developers are not rare enough for current demand.
However recently the vacancy rate has dropped to near zero, even though new condos are constantly being built, so the problem is actually finding a place. Accordingly rents are rising substantially.
http://www.metronews.ca/news/vancouver/2015/12/16/vancouver-...
Do you have any sources to back up that statement? I only ask as I know many devs, myself included, who receive pretty competitive pay when compared to SF (taking local living costs into account).
Back in 2010-2011, everybody I knew in Vancouver was earning ~45-60k after graduation (With multiple semesters of co-op experience). No stock, no bonuses, maybe a bit of RRSP matching. I was an outlier at ~95k CAD (At an investment bank).
Eight months later, I got an offer from Google for ~180k USD total comp.
Since then, only three people from my school that I know have broken 100k CAD - one of them works for Amazon, one of them worked for SAP for a decade, and one of them gets paid in USD.
The cost of rent in Vancouver is not as high as SF, but the cost of home ownership may as well be. Single-family homes at a 40-minute commute are north of half-a-million, and a home in Vancouver proper will run you more then a million.
I hear things are better out east, but I don't want to spend a third of my life living in a frozen hellscape.
So along with all of its other problems - ridiculous home prices, "zombie" neighbourhoods, terrible traffic, no night life to speak of - Vancouver also has awful salaries.
That said, we'll be driving in this weekend to see Star Wars.
> "Google Raids Threaten Canada's Lead in Artificial Intelligence"
This seems like an unnecessary specific title, I'd suggest the following edit:
"US Tech Company Compensation Threaten Canada's Trailing Status in All of Tech"
For one thing, this isn't just an AI thing, US companies have been moving Canadian tech workers south of the border for years across the board, regardless of specialization or focus area. Everyone from the humblest code monkey to the brainiest algorithms wrangler is being exported from Canada at a rapid pace.
This has been happening for long enough that a significant fraction of Canadian tech talent is already residing in the US, which sort of raises eyebrows about any claims that Canada "leads" in tech currently. If there ever was a lead the brain drain has certainly put that to bed long ago.
And it's not just Google, all of the major companies recruit Canadians heavily, and even startups have gotten in on the game in recent years.
And these aren't "raids". Google isn't marching off computer scientists at gunpoint. There's nothing predatory about this - if Canadian companies want to play in the same league as US tech, they need to catch up, the least of which is narrowing the pay gap.
Right now I am literally making 500% the salary a similar position pays in Canada. Even accounting for the living costs of SF/SV/NYC it's not hard to see why people make the move. Canadian tech pays incredibly poorly in comparison to US tech, and that's far and away the #1 reason the brain drain exists and will persist.
I'm a proud Canadian, and all else being equal I'd rather live in Canada than the US, but one of the persistently annoying things about Canada's tech industry narrative is the continuous denial of just how far behind they are compared to the US.
I don't see 500% as a likely pay gap for most.
> "I could go to some hellish place like NY and live in a cardboard box and up my wage 50% (and work longer hours, with less holidays so less time with my kids)."
I hear this a lot from Canadian colleagues who stay in Canada, and I dunno, it always irks me a little bit.
Increasing your wage doesn't necessarily entail longer hours or fewer holidays. It seems like it's a popular perception in Canada to imagine all US jobs as some kind of hellish sweatshop where you're chained to your desk all day in exchange for more money - but in reality the spread of job quality is the same here as it is in some place like Toronto or Vancouver. You will find the same shitty sweatshop jobs and you will find great jobs - the pay increase seems entirely orthogonal to that. The market rate is simply higher - much higher, across the board.
I think large urban centers generally have longer working hours. Such as NY and London. Typically the living quarters are smaller, the commute is longer and the culture is more "you shall be here until at least 6pm because you live to work". Not everywhere, but on average.
This feels like it lines up with, well, everywhere else.
I've had 4 jobs in this city and this has been the case with every single one, and they've ranged from tech megacorps to startups. This isn't some pressure-cooker investment banking job...
I feel like your impression of NY tech (I can't speak to London) is drawn from stereotypes more than reality. I've worked also in Toronto and the work expectations do not feel much different - if anything it feels a bit more lax here in NYC than TO.
> "But not 500%, I'm quite sure."
I dunno, what do you think an iOS developer with ~4 years of experience fetches in Toronto or Vancouver? Let's say total comp (i.e., salary, any guaranteed bonuses, public stock).
Also it's not a sane comparison at the start of your career. You have ~2 years then move and have ~4 years and your salary went up? Is that location related or related to the fact that you are now actually useful instead of learning the ropes?
Avg developer salary in the US is ~80k. So to meet your 500% dev in Canada would be earning less than part-time hot-dog sellers.
I work with people in NY every day. They work longer hours. I think if you asked most tech in big cities if their day is longer they'd agree.
Granted my rent has gone up by a factor of 3.5, but after paying rent I've still got double the money leftover. Other things are cheaper too.
Now of course there is a couple years experience vs when I was in BC, but I would still probably be close to double.
In the main I'm talking about "world cities" where the big finance firms launder money through property, detaching the price from local wages, such as NY, LN and TK.
I wouldn't count Seattle as a "big" city. The OP was talking about NY and SF, both of these are very big.
As opposed to what kind of place in Canada? NY was pretty awesome the last time I visited.
I think we need some border-tightening. :-)
Here's another title: "Canadians Drive down Salaries of US Artificial Intelligence Researchers"
Because, if rent and utilities are 40% average higher here and you make 30% more by moving, it may not be as big of a raise as you think.
In both Toronto and Vancouver, the public transit is abysmal and, in my opinion, 20 years behind what the population requires. So you NEED a car, and for Toronto at least, the insurance will kill you due to Ontario's "no fault" law.
Our power infrastructure is crumbling as well. There was one point this summer where our power rates were temporarily jacked up by something like 300% due to an issue at a nuclear power station. A bad case of NIMBYism has delayed a gas power plant in the GTA, and the public company which manages power generation (Hydro One) recently sold a 60% stake to private investors. There is wide spread fear that the costs of power are going to skyrocket in the near future.
The US has tech hubs all over the country. Houston, Seattle, New York, San Francisco, and those are just the big ones. If living in the "core" of these cities is too expensive, it is quite feasible to live on the outskirts and use the public transit to commute into the city. San Fran is a bit of an exception to this, as I understand it, though.
I guess my point is, is that I have many many options in the States, whereas my hands are tied in Canada.
Have you actually lived in Vancouver?
I do. I agree with him - the transit system here is abysmal for the job it should be doing. We had a referendum this year to expand translink, but it failed.
Transit is moderately OK if you live in Vancouver-proper. But no one moves to Vancouver anymore because no one wants to raise a family in a 700 sqft apartment. Burquitlam/Richmond/Delta/Surrey? Forget about it; translink is awful there.
It's... Pretty damn good. Much better than Seattle/SF/SJ/Just about other city that's not NYC.
It is, however, a regional pastime to complain about it.
It's also worth mentioning that Vancouver is especially vulnerable to this problem because for 30 years now we've had 'sustainable development' policies in the city and the province that were mostly there to make it difficult for people to live south-east of the Fraser. Vancouver effectively has a 'green-belt'. Other cities would have built more highways and bridges to make it easier for people to live where they want; Vancouver tries to fix the game and incentivize living north of the fraser. But we've reached a breaking point and none of the very mild incentives on offer makes up for crushing mortgage payments and trying to raise your kids in a broom closet. The solution here is simple - build more highways and bridges into Vancouver and let people live where they want.
Only if they are made domestically without imported inputs. Currency depreciation lowers your standard of living and increases cost, it doesn't even make domestic goods more accessible - it only makes them cheaper compared to the imported alternatives - the only exception being if you earn money in foreign currency - in which case you are being stimulated as exporter.
I doubt any of those is cheaper considering all the tax differences - for a young/healthy developer - health insurance will probably be a part of the package as well - the only exception would probably be housing which can vary.
Services tend to be significantly cheaper. (Cell phone plans, taxi's, ect.)
Similarly Californians can cross the state border to Oregon (which has no sales tax) and buy cheaper stuff there, but technically they have to pay California a use tax on those items equivalent to Californian sales tax.
US: $30 - http://www.amazon.com/dp/B001EZYMF4
Canada: $70 - http://www.amazon.ca/dp/B001EZYMF4
Edit: I recall the cost being 2.09 USD/gal which currently converts to 0.77 CAD/L according to Google (Search for "2.09 USD / gal in CAD / L")
I remember coming to the US and being shocked you could buy a pair of Levi's for $30 when they were closer to $70-80 in Canada.
When the Canadian dollar was at par with the US, there were a ton of Canadians going south to buy cars. Before hitting par, the numbers made sense (convert US price to CAD and you get pretty close). Once it was at par you could save thousands of dollars buying a US car and bringing it across the border.
In the 90s, when Canada's currency was low, there was similar talk of brain drain amongst highly educated professionals.
USD to CAD chart for the past five years: http://www.xe.com/currencycharts/?from=USD&to=CAD&view=5Y
Would you consider any current system or approaches are a continuation of that or did that end up a dead branch in the AI evolution so to speak.
I can perhaps think of IBM's Watson as sort of continuing in that legacy.
Modern systems use probabilistic models which are much more flexible.
well yeah, people want to go to the states and be paid more while working on interesting things.