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.