Sector supports more than 420,000 direct and indirect jobs
OTTAWA, Nov. 20, 2013 /CNW/ - One of every 13 jobs in the Toronto area
is in financial services, and the sector accounted for 13.8 per cent of
Toronto's economy in 2011 —second only to manufacturing—according a
Conference Board of Canada report released today.
The concentration of financial services employment (7.5 per cent of all
Toronto jobs) is higher than world financial capitals London (7.4 per
cent) and New York (6.4 per cent). Employment in the financial services
sector was fifth-highest in the metro area in 2012.
The sector generates a high level of economic output because it pays
above-average wages and salaries, has a high degree of ongoing
investment, and is highly profitable.
Financial services are also a key player in Canada's international
investment -- the sector accounts for half of the country's total stock
of outward foreign direct investment. Exports account for one-quarter
of financial sector revenues, well above the average for all service
sectors. And Canada is a large net exporter of financial services
capital, consistently ranking among the top four countries globally in
terms of outward foreign direct investment.
Toronto's financial services sector employed almost 230,000 people in
2012, and indirectly supported another 191,000 jobs.
Financial services employment in Toronto has risen by 25 per cent since
The financial services sector accounts for half of the country's total
stock of outward foreign direct investment.
"Toronto's stature as a global financial centre is similar to cities
such as Frankfurt, Sydney, and Zurich. Toronto's highly-ranked status
is founded on its core strengths, which include its diversity and its
scale," said Michael Burt, Director, Industrial Economic Trends.
"Nevertheless, policy-makers and the institutions that make up the
Toronto financial services sector should not become complacent. Cities
such as Dubai, Shanghai, Sao Paolo and Mumbai are aggressively
developing their financial sectors. Understanding -- and leveraging
--Toronto's strengths of diversity and scale are the keys to meeting
this challenge from new competitors."
The financial services sector employed 229,380 people directly in
Toronto in 2012, according to Statistics Canada. These positions ranged
from tellers and agents in local offices to head-office employees for
In addition, the Conference Board's analysis found that Toronto's
financial services sector also generated supply-chain or indirect
effects, supporting an additional 191,210 jobs indirectly in areas such
as professional and administrative services—almost half of those
positions elsewhere in Canada. Thus, the sector sustained a total of
420,590 jobs in 2012.
The sector is also growing faster than other parts of the Toronto
economy. Since 2002, financial services jobs increased by an average of
2.2 per cent per year, compared to 1.5 per cent growth in employment
for the Toronto economy as a whole.
In terms of tax revenues, the Conference Board estimates that Toronto's
financial services sector generated a combined $13 billion for the
federal ($6.8 billion), provincial ($5.9 billion), and municipal ($250
The report, Ensuring the Future: Understanding the Importance of Toronto's Financial
Services Sector, was funded by the Toronto Financial Services Alliance. Seven
industries are included in the financial services sector: banking,
credit unions, insurance, asset management, securities, exchanges, and
SOURCE: Conference Board of Canada
For further information:
Yvonne Squires, Media Relations, Tel.: 613- 526-3090 ext. 221