1 in 3 of the industry's workers are in Toronto
Canada’s financial services sector is growing fast and is increasingly focused on Toronto.
The latest financial services report card from the Conference Board of Canada reveals that 33.7% of financial services jobs are in Toronto (up from 29.8% a decade ago) and the sector accounts for 8.5% of the city’s employment.
The sector has also outpaced the growth of other sectors, rising 28% in the past decade with employment in financial services up 10.5% in that time. Across Canada more than 800,000 work in the sector, 4.5% of total employment nationwide.
Financial services also accounts for 7.2% of Canadian GDP.
Vital for SMEs
The report also highlights how important the sector is to the 99.7% of businesses in Canada that are SMEs.
This includes investment services, private equity and venture capital. Combined, private equity, the TSX venture exchange, and venture capital supplied $21 billion in equity financing to Canadian SMEs in 2016.
“Small- and medium-sized businesses are important drivers of growth and employment for the Canadian economy,” said Michael Burt, Director, Industrial Trends, The Conference Board of Canada. “However, because of their limited scale, SMEs often require additional services from the financial sector that help in their day-to-day operations, as well as future growth.”
Largest sector for outward FDI
Canada’s financial institutions lead outward foreign direct investment, 48% of the total and amounting to $506 billion in 2016, more than double the 2006 total.
These investments have meant that Canada’s financial services foreign affiliate sales have been growing steadily and now account for 18% of Canada’s total foreign affiliate sales. They are about 10 times the size of the sector’s exports.
The latest financial services report card from the Conference Board of Canada reveals that 33.7% of financial services jobs are in Toronto (up from 29.8% a decade ago) and the sector accounts for 8.5% of the city’s employment.
The sector has also outpaced the growth of other sectors, rising 28% in the past decade with employment in financial services up 10.5% in that time. Across Canada more than 800,000 work in the sector, 4.5% of total employment nationwide.
Financial services also accounts for 7.2% of Canadian GDP.
Vital for SMEs
The report also highlights how important the sector is to the 99.7% of businesses in Canada that are SMEs.
This includes investment services, private equity and venture capital. Combined, private equity, the TSX venture exchange, and venture capital supplied $21 billion in equity financing to Canadian SMEs in 2016.
“Small- and medium-sized businesses are important drivers of growth and employment for the Canadian economy,” said Michael Burt, Director, Industrial Trends, The Conference Board of Canada. “However, because of their limited scale, SMEs often require additional services from the financial sector that help in their day-to-day operations, as well as future growth.”
Largest sector for outward FDI
Canada’s financial institutions lead outward foreign direct investment, 48% of the total and amounting to $506 billion in 2016, more than double the 2006 total.
These investments have meant that Canada’s financial services foreign affiliate sales have been growing steadily and now account for 18% of Canada’s total foreign affiliate sales. They are about 10 times the size of the sector’s exports.
