Canadas financial services sector continues its rise on the global stage

In recent years, Toronto has outpaced many global financial centres in terms of both employment growth and concentration. Toronto added more than 55,000 new financial services jobs between 2012 and 2017, an increase of more than 25%. Of the global financial centres included in the report, only two Chinese cities experienced stronger employment growth than Toronto.

The report, Toronto on the Global Stage: 2018 Report Card on Canada and Torontos Financial Services Sector, also finds that the concentration of financial services employment in Toronto (8.3%) is second only to Luxembourg (11.6%) and higher than world financial capitals London (6.5%) and New York (6.4%). Locally, one out of every 12 jobs in the Toronto area is in financial services, and the industry accounted for 13.6% of Torontos economy in 2017—second only to the public services sector.

Canadas financial sector has been a source of growth for the economy, directly accounting for over 831,000 jobs and 7.1% of GDP in the country. More than 408,000 jobs in Toronto were directly and indirectly supported by financial services, making the sector the second largest employer in the Toronto metro area, excluding the public sector. There were also more than 150,000 jobs elsewhere in the province and in Canada that are sustained by financial services activity in Toronto.

Financial services are a key player in Canadas international investment—the sector accounts for nearly half of the countrys outward foreign direct investment. At $537 billion in 2017, this has more than doubled in the last decade. Financial services are also Canadas largest and fastest-growing services export.

Toronto on the Global Stage: 2018 Report Card on Canada and Torontos Financial Services Sector is sponsored by Toronto Finance International and is available from the Conference Boards e-Library.