While professionals in the industry work every day to make a difference to people’s finances, and in turn their overall lives, it seems the financial services industry is having an even bigger effect as a new report reveals the sector is helping boost the country’s job market and economy.
The report, by the Conference Board of Canada, found that in 2014 the sector had accounted for 780,000 jobs along with 6.8% of Canada’s gross domestic product (GDP).
“The financial services sector has been a strong source of growth for the Canadian economy over the past decade,” said Michael Burt, Director, Industrial Trends, the Conference Board of Canada. “The sector’s employment, financial results, and international trade and investment performance, have outpaced the average for all other sectors."
The report, funded by the Toronto Financial Services Alliance, is called ‘An Engine for Growth: 2015 Report Card on Canada’s and Toronto’s Financial Services Sector
.’ It found that Toronto was a big source of the sector’s development with 30% of financial services’ headquarters currently based in the city. This is almost double that of Vancouver.
Not only is Toronto the largest financial centre in Canada, it was also found to rank highly compared to other global financial centres. The Banker magazine ranked Toronto seventh globally and second among financial centres in North America making it the place to be for those seeking jobs in the industry.
This comes as previous research had indicated that fewer young people were entering the finance profession. As such a contributing factor to the economy and with a wealth of job opportunities, young people may want to consider the sector.
In addition to the direct economic effects, Toronto's financial services sector also generated indirect effects in key industries including consulting, accounting, legal services and computer services. With both the indirect and direct effects calculated, it would seem that the financial services sector in Toronto is currently providing 358,000 jobs in the metro area.
The Conference Board also estimated that the city’s financial services sector generated a combined $15.7b for the federal, provincial and municipal governments.