Financial services growth could create 19,000 NW jobs
WELL-regulated growth in financial services could create 19,400 North West jobs across a range of sectors by 2020.
That’s according to an analysis by accountancy group PwC which found an extra 47,000 jobs in the financial services sector would have a multiplier effect, creating 218,000 across the economy nationally.
PwC economists based the figures on a particular vision for the financial services, characterised by “a robust, but supportive, regulatory regime and economic and market conditions that are also beneficial to the financial services sector”.
They say GDP could be 2-3% higher by 2020 if financial services’ Gross Value Added (GVA) – its contribution to the wider economy – rises by £50bn between 2013-14 and 2020-21. But if constrained by weaker economic growth and a less favourable regulatory environment there may only be a 0.2% increase in GDP and the sector would contribute just 12,000 jobs, said PwC.
North West chairman Iwan Griffiths said: “Our financial services industry has a critical role to play in growing the economy, both in the North of England and across the UK as a whole.
“Across our region, growth in employment across most sub-sectors of the financial services industry clearly demonstrates our ongoing ability to attract high quality players and that we are ‘open for business’. We need to maintain this momentum and showcase these successes more.
“The links between financial services sector and other sectors are also strong. A well-functioning industry not only provides credit but creates demand in other sectors, helps improves the flow of capital and, as our report shows, can also act as a multiplier effect, with the potential to create over 19,000 private sector jobs in the North West alone.”
