ottawa integrated local labour market...
TRANSCRIPT
OTTAWA Integrated Local
Labour Market Plan
FINANCE
Sector Overview
Updated December 2011
2010 - 2012
2012
FINANCE Sector 1
The Ottawa Story: Finance
ISSUES & CHALLENGES:
Relative to Ontario, Ottawa has a higher proportion of professional occupations in business, finance,
insurance and clerical occupations. However, interestingly, it has a slightly smaller proportion of
administrative and regulatory occupations than Ontario. There appears to be an adequate supply of
these occupations: Finance and insurance administrative occupations, Secretaries, Clerical supervisors
and Clerical occupations.
There may be a skills surplus in professional occupations in business and finance, and in administrative
and regulatory occupations, as there is a greater proportion in Ottawa than in Ontario. There are
shortages and challenges in certain key financial roles, such as Financial Advisor, due to significant
competitive pressures and the allure of the large financial institutions and federal government.
Small businesses (0-49 employees) make up 97% of Credit Intermediation and Related Activities, 94.7%
of Insurance Carriers and 83.6% of Securities, Commodity Contracts, and Other Financial Investment and
Related Activities. Most financial institutions offer a number of in-house training initiatives for staff, but
these are likely mostly for large businesses; e.g., large banks and insurance companies.
Specific occupations, such as customer service representatives, have a high turnover rate estimated at
20%. There are challenges to retain them as they often obtain their first experiences in a financial
institution and then accept advancement opportunities in the federal government.
POTENTIAL SOLUTIONS:
External training programs could be developed to provide some form of accreditation,
particularly for small business employees in the sector. However, they would need to be
recognized by employees in the financial sector as credible. Such training could include
leadership and customer service training.
Retention policies have to be encouraged. Perhaps seminars to discuss these issues within
independent/small brokerages/sector may be of interest.
Toronto has the biggest private banking sector, whereas Ottawa is the seat of the Bank of
Canada and the federal government. Ottawa could explore a niche area: micro-credit and
community finance initiatives for Canadians, especially rural, aboriginal or immigrant
entrepreneurs.
FINANCE Sector 2
Sector Summary: Finance
The Sector Summary: Finance has been adapted from an earlier version of the Ottawa Labour Market
Plan completed in March 2011.
Sector Highlights & Potential Actions
SECTOR OVERVIEW Employed 19,115 individuals in 2006, representing a
0.2% increase over 2001 employment levels. The
Financial Services sector ranked 12th for total
employment in Ottawa in 2006. Sector growth was
considerably lower than the provincial average of 8.1%
for the same period. It is an economically viable sector
with many employment opportunities being offered
on a continual basis. The sector offers employees
many benefits, including employment security and
career advancement for good performers.
Ontario Job Generation/Loss Ratio
53.0 Securities, Commodity Contracts,
and other Financial Investment and
Related Activities
108.8 Insurance Carriers and Related
Activities
177.5 Credit Intermediation and Related
Activities
Ease of Labour Market Entry
Difficult entry into labour market as more
jobs lost than generated; easier for credit
intermediation and related activities.
KEY CHALLENGES The ageing workforce is of concern to the financial
sector, along with having an exodus of talent.
Challenges to retain experienced Customer Service
Representatives as they accept advancement
opportunities in the federal government. It is estimated
that the turnover level is nearly 20%.
Shortages and challenges in certain key financial roles
such as Financial Advisor as there are significant
competitive pressures and allure of the large financial
institutions and federal government.
POTENTIAL ACTIONS
Develop leadership training for
Customer Service Representatives from
a credible organization.
Develop workforce initiatives to attract
and retain Customer Service
Representatives and Financial
Advisors.
Explore niche area: micro-credit and
community finance initiatives for
Canadians, especially rural, aboriginal
or immigrant entrepreneurs. KEY OPPORTUNITIES External training programs need to be recognized by
employees as credible and provide accreditation.
Rebranding of Ottawa as a centre for non-commercial,
micro-lending and finance.
FINANCE Sector 3
Sector Overview
Based on 2006 Census, the financial services industry employed 19,115 individuals in 2006, representing
a 0.2% increase over 2001 employment levels. This growth was considerably lower than the provincial
average of 8.1% for the same period. Financial services ranked 12th for total employment in Ottawa-
Gatineau in 2006. The top three occupations in this sector were in Clerical occupations, Professional
occupations in Business and Finance and Skilled Administrative and Business occupations.
Using more current Canadian Business Patterns data, the Credit Intermediation and Related Activities
sub-sector is ranked 11th for small and medium enterprises (SME) based on employment in Ottawa as
of June 2010, employing 5,903 individuals. The total employment in Financial Services represents 4.7%
of the total SME employment. This is logical as the greater employment levels would be found in the
larger financial and insurance institutions.
Based on the Canadian Business Patterns data, financial services experienced a 17.17% growth in
employment levels between 2005 and 2009. As of June 2010, there were 2,928 businesses in financial
services, including 2,010 owner-operators. This total number of businesses represents a decline of 25
businesses from December 2008.
How easy is it for new labour to enter this sector?
The Ontario job generation/loss ratio1 for Financial Services occupations including NAICS 522 – Credit
Intermediation and Related Activities is 177.5 (11.9 jobs created for every 6.7 lost); NAICS 523 –
Securities, Commodity Contracts, and other Financial Investment and Related Activities is 53.0 (25.9 jobs
generated for 48.8 lost) and NAICS 524 - Insurance Carriers and Related Activities is 108.8 (24.9 jobs
created for every 22.9 jobs lost). Therefore, it seems difficult to enter the Financial Services
marketplace, particularly for NAICS 523 and NAICS 524 categories. In contrast, it is easier for those
entering credit intermediation, credit counselling and advisement to enter the workforce.
Labour Demand & Supply
Relative to Ontario, Ottawa has a higher proportion of professional occupations in business, finance,
insurance and clerical occupations. However, interestingly, it has a slightly smaller proportion of
administrative and regulatory occupations than Ontario. There appears to be an adequate supply of
these occupations: Finance and insurance administrative occupations, Secretaries, Clerical supervisors
and Clerical occupations. There may be a skills surplus in professional occupations in business and
finance and in administrative and regulatory occupations as there is a greater proportion in Ottawa than
in Ontario. There are shortages and challenges in certain key financial roles, such as Financial Advisor,
1 Ontario Labour Market Adjustment Dynamics by Industry Sub-Sector, 2001 to 2006, LEAP Data,
http://www.drltb.com/includes/viewfile.php?id=201&type=doc accessed September 23, 2011.
FINANCE Sector 4
due to significant competitive pressures and the allure of the large financial institutions and federal
government.
Table F1: Occupational Share of Labour Force
Ottawa Labour Force
Ottawa
Distribution %
Ontario Labour Force
Ontario
Distribution %
B0 Professional occupations in business and finance 17,470 3.83 182,195 2.77
B1 Finance and insurance administrative
occupations 4,440 0.97 82,185 1.25
B2 Secretaries 4,505 0.99 93,765 1.42
B3 Administrative and regulatory occupations 16,625 3.64 147,560 2.24
B4 Clerical supervisors 2,475 0.54 38,685 0.59
B5 Clerical occupations 47,760 10.46 660,100 10.02
Source: Statistics Canada, 2006 Census
Table F2: Finance Businesses in Ottawa, Canadian Business Patterns Data, June 2011
3-Digit NAICS
To
tal
Ind
ete
rm.
Su
bto
tal
1
-4
5
-9
1
0-1
9
2
0-4
9
5
0-9
9
100-1
99
200-4
99
500
+
521 –Monetary Authorities -
Central Bank 1 0 1 0 0 0 0 0 0 0 1
522 – Credit Intermediation
and Related Activities 488 155 333 86 27 32 177 5 2 0 4
523 –Securities, Commodity
Contracts, and Other
Financial Investment and
Related Activities 2142 1811 331 240 44 17 16 8 2 2 2
524 – Insurance Carriers and
Related Activities 379 97 282 156 57 34 20 10 3 2 0
526 – Funds and Other Financial Vehicles
34 29 5 5 0 0 0 0 0 0 0
Source: Canadian Business Patterns, June 2011.
FINANCE Sector 5
The majority of non-indeterminate credit and finance businesses are small to medium sized with the
exception of the large banking and financial institution. Small businesses (0-49 employees) make up 97%
of Credit Intermediation and Related Activities, 94.7% of Insurance Carriers and 83.6% of Securities,
Commodity Contracts, and Other Financial Investment and Related Activities.
Table F3: Distribution of Total Employers by 3-Digit Industry, Ottawa and Ontario, 2011
3-Digit NAICS Ottawa Total
Distribution %
Ontario Total
Distribution %
521 – Monetary Authorities - Central Bank 1 0 2 0
522 – Credit Intermediation and Related Activities 488 0.85 9,026 1.01
523 – Securities, Commodity Contracts, and Other
Financial Investment and Related Activities
2,142 3.74 38,582 4.32
524 – Insurance Carriers and Related Activities 379 0.66 6,456 0.72
526 – Funds and Other Financial Vehicles 34 0.06 699 0.08
Source: Canadian Business Patterns, June 2011.
Ottawa has a lower share of securities and financial investment services, insurance and financial vehicles
categories as many of these tend to be either distributed across the province (as with insurance carriers)
at an even pace, or concentrated in Toronto, the province’s financial capital. However, there has been
an increase in the absolute number of the same category employers from 2008 to 2011.
Table F4: Change in the Total Number of Employers, Ottawa 2011
3-Digit NAICS Total Employers
2008
Total Employers
2011
Absolute Change
Absolute %
521 – Monetary Authorities - Central Bank 5 3 -2 -40.00
522 – Credit Intermediation and Related Activities 25 25 0 0.00
523 – Securities, Commodity Contracts, and Other
Financial Investment and Related Activities
18 21 3 16.67
524 – Insurance Carriers and Related Activities 24 25 1 4.17
526 – Funds and Other Financial Vehicles 1,707 1,808 101 5.92
Source: Canadian Business Patterns, June 2011.
FINANCE Sector 6
Challenges & Opportunities
Most financial institutions offer a number of in-house training initiatives for staff. However, external
training programs need to be recognized by employees in the financial sector as credible and provide
some form of accreditation, particularly for small business.
New immigrants and new entrants need to understand the Canadian banking system and products
particularly investment vehicles, licensing, accreditation requirements, etc. Consultations have identified
a need for individuals with excellent customer service skills at all levels. There is a need for leadership
training for customer service representatives. There are challenges in the sector to retain experienced
Customer Service Representatives as they often obtain their first experiences in a financial institution
and then accept advancement opportunities in the federal government. Estimated turnover level is 20%.
Toronto has the biggest private banking sector whereas Ottawa is the seat of the Bank of Canada.
However, there is a potential opportunity is the rebranding of Ottawa as a centre for non-commercial,
micro-lending and finance. Ottawa, as the seat of the federal government and Bank of Canada, has a
role to play in the finance industry. However, since Toronto has the agglomeration of financial
organizations and banks (Bay Street), perhaps Ottawa could explore another niche area: micro-credit
and community finance initiatives for Canadians, especially rural, aboriginal or immigrant entrepreneurs.
Potential Actions
Develop leadership training for Customer Service Representatives from a credible
organization.
Develop workforce initiatives to attract and retain Customer Service Representatives and
Financial Advisors.
Explore niche area: micro-credit and community finance initiatives for Canadians, especially
rural, aboriginal or immigrant entrepreneurs.