I want to hire an electrician to run new wiring for basement reno that I am doing. Do they need a work permit from the city to be hired?

Yes.
This isn't to say that some electrical work gets done without permits, but most electricians will insist on it for their own protection. If you are just replacing some outlets or other minor work, maybe.

Oh, and your reno might need a permit too. If you've started it without one, just have a chat with the inspector or invite him to see what you've done, and be VERY agreeable or he can fine you and even make you undo what you did.

Be careful please.

If you have not begun the work yet or hired the electrician the first thing you need to make sure of is that the electrician is properly licensed.

Second, and this is very important, let the electrician pull the permit from the city.

If you get the permit, then you are responsible for the repairs or re-work to the job, not the electrician. He /She may provide you with a warranty but that is not the same thing.

If the electrician pulls the permit, then he is responsible to make sure any work that fails the inspection are corrected to the inspector's satisfaction.