NEC Releases Report Highlighting Impact of Region’s Financial Services Industry
Study Quantifies Employment, Economic Influence of Critical Sector
BOSTON (January 31, 2017) – The New England Council, the nation’s oldest regional business association, today released a new study on the impact of New England’s financial services industry on jobs and economic growth at an event in downtown Boston. The report, entitled “The New England Financial Services Industry: Around the Corner and Around the World,” demonstrates the importance of this major sector to quality of life and employment in the region, identifying the total number of direct, indirect, and induced jobs in each of the six New England states, and broken out by sector – banking, asset management, and insurance. It was produced in collaboration with a number of New England Council members.
The report found that New England is home to 375,460 direct jobs in the financial services industry, which totals the 7th most of any industry in New England. The insurance sector contributed the largest share at 175,870, followed by the banking sector with 146,570 jobs and the asset management sector with 53,020 jobs. In addition, the industry also supported 247,050 indirect and 390,020 induced jobs, equaling a total contribution of 1,012,510 jobs, greater than 10% of total regional employment. Furthermore, the report finds that the financial services industry accounts for 15.0% of the New England economy’s GDP and 13.7% of total output, providing a large tax base for state and local government income, wage and property taxes.
In addition to employment, the report also details other ways that the financial services industry contributes to the region’s economic well-being, including through small business lending, retirement and other investment advice, and community involvement. Finally, the report highlights New England’s leadership in the emerging area of financial technology, or “FinTech,” with examples of some of the innovative FinTech initiatives across the region.
“The financial services industry in New England makes so many other important elements of our economy possible, from buying a home, to starting a business, to insuring a home or vehicle, to saving for retirement,” said James T. Brett, President and CEO of The New England Council. “We hope that policymakers at the state and federal level will read this report and be reminded of the critical role that financial services plays in our region.”
“As this study demonstrates, tens of thousands of New Englanders make their living in the financial services sector, from bank tellers, to insurance agents, to professional investors, and beyond,” said John Hailer, CEO of Natixis Global Asset Management in the Americas and Asia and Chairman of The New England Council. “It’s no wonder, then, why so many of the world’s leading asset managers, insurance companies, and other financial institutions are proud to call New England home. The financial services industry is critical to our region’s continued economic well-being and quality of life for residents throughout the region.”
Following a presentation on the report’s findings, a panel of industry representatives discussed the study and offered perspectives from their individual sectors. The panelists included: Paul Gentile, President/CEO, Cooperative Credit Union Association, Inc.; Lenny Glynn, Managing Director of Policy, Putnam Investments; Kevin Malone, Market President for Greater Boston and Rhode Island, TD Bank; and Susan Winkler, Executive Director, Connecticut Insurance and Financial Services (CT IFS). The panel was moderated by John Stadtler, Partner at PwC.
The New England Council, the country’s oldest regional business organization, is an alliance of businesses, academic and health institutions, and public and private organizations throughout New England formed to promote economic growth and a high quality of life in the region. The Council is dedicated to identifying and supporting federal public policies and articulating the voice of its membership regionally and nationally on important issues facing New England. The NEC is also committed to working with public and private sector leaders across the region and in Washington through educational programs and forums for information exchange. For more information, please visit: www.newenglandcouncil.com.