Media Release

 
September 24, 2012

Automotive, construction and financial sectors key economic drivers in The Regional Municipality of York

Backgrounder at the end of article
Most jobs in these sectors experience low unemployment and higher-than-average income.
The automotive, construction and the finance, insurance and real estate sectors in The Regional Municipality of York accounted for 86,000 jobs or 19 per cent of total employment in the Region. This data represents a key finding of a study of employment trends based on York Region’s 2011 Employment Survey.
 
“York Region has a diverse economy with strengths in a number of different sectors,” said York Region Chairman and CEO Bill Fisch. “A diverse economy allows for greater ability to withstand economic downturns because we are drawing on a wide range of job sources.”
 
Studying economic sectors enables the Region to implement initiatives that enhance economic vitality and foster an innovative economy.
 
“Having a greater understanding of the Region’s key economic sectors is critical to developing effective solutions,” said Town of Newmarket Regional Councillor John Taylor, Chair of the Region’s Planning and Economic Development Committee. “These studies will assist in the development of sector-focused investment attraction programs, innovation hubs, export development initiatives and in targeting York Region companies for assistance in growing their businesses.”
 
This latest sectoral employment analysis complements a similar study of the information and communications technology (ICT), life sciences and business and professional services sectors in June, which accounted for about 71,000 jobs in the Region. That report concluded those sectors are significant contributors to the Region’s knowledge-based economy, provide high quality jobs in the Region and will contribute to future employment growth in the Region.
 
Together, the two sectoral studies account for nearly 35 per cent of employment in the Region.
 
The majority of occupations available in all six of these sectors are full-time positions which experience low unemployment and higher-than-average incomes, according to Provincial data. These are the types of occupations which are important in maintaining a stable, skilled workforce and a strong Regional economy.
 
Future growth in the Region`s key employment sectors will contribute towards meeting the Region’s forecasted employment growth of 264,000 jobs by 2031.
 
To view an online copy of the Automotive, Construction and Finance Sectoral Employment Analysis, please see the staff report  For more information about programs to assist your business, please go to www.york.ca/business

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See Backgrounder: Highlights of the automotive, construction and finance, insurance and real estate sectors
 
Media Contact: Tim Paleczny, Corporate Communications, The Regional Municipality of York
905-830-4444 or 1-877-464-9675, ext. 1238  Cell: 905-251-6413  tim.paleczny@york.ca
 
The Regional Municipality of York provides services to 1.1 million residents and 41,000 businesses that employ 516,000 people
 

Backgrounder
 
Highlights of the automotive, construction and finance, insurance and real estate sectors

Full-time positions with low unemployment and higher-than-average incomes key to stability

The automotive, construction and finance, insurance and real estate sectors are key components of the employment base of The Regional Municipality of York and will continue to be important contributors to future job growth and the Regional economy. Collectively, these sectors:

• Provided nearly 86,000 jobs, or about 19 per cent of the Region’s total employment
• Have shown strong employment growth over the last five years despite a decline particularly in the automotive sector immediately following the 2008/2009 recession
• Provide full-time positions with low unemployment and higher-than-average incomes, which are important in maintaining a stable, skilled workforce and a strong Regional economy, according to Provincial data
 
Employment data for the analysis in this report is based on the York Region 2011 Employment Survey, as well as industry data from each of the identified sectors.
 
As noted in the June 2012 York Region Sectoral Employment Analysis report, the information and communications technology (ICT), life sciences and business and professional services sectors account for 71,000 jobs in York Region. Taken together, the six sectors examined account for nearly 35 per cent of the surveyed employment base in York Region. These sectors will continue to contribute to meeting the Region’s employment targets and provide high quality jobs.

The automotive sector
The automotive sector in York Region is an integral part of the Ontario automotive industry with the presence of the global head office of Magna International Inc. and its related companies along with other automotive parts businesses. York Region is home to the Canadian head offices for several global automotive industry leaders, including Honda, BMW, Hyundai, Mazda, Suzuki and Volvo. The Region’s competitive advantages include accessibility to major air and road transportation networks and easy access to assembly and parts plants, as well as retail and wholesale establishments. 
 
York Region’s automotive sector employed approximately 21,700 people in 1,428 businesses in 2011.
 
Automotive assembly and parts businesses have significant economic multiplier impacts on local and regional economies. According to Federal Government estimates, every 10 direct jobs in automotive assembly leverages five jobs in motor-vehicle parts, seven in other manufacturing industries (fabricated metal products, plastics, machinery) and 24 jobs in non-manufacturing sectors (engineering, accounting, legal, financial, wholesale).
 
Mirroring North American trends, the automotive sector in York Region has seen a reduction from 2006 employment levels, however they are recovering from the low that was reached in 2009-2010 due to a 10 per cent increase each year in the number of automobiles sold in 2010 and 2011 in the United States, Canada’s principal market.
 
Just over 40 per cent of the total automotive sector employment base is located in the City of Vaughan. Vaughan, the Town of Newmarket and the Town of Aurora collectively account for about 80 per cent of York Region’s automotive sector manufacturing employment base.

The construction sector
The construction sector is a major economic engine for York Region. It keeps the economy moving forward by constructing buildings for businesses, infrastructure to support growth, new homes for residents and provides jobs for people directly employed in the construction sector.
 
The new housing and renovation industry is the largest industry in Ontario. In 2010, Ontario’s construction industry employed 442,500 people. In the Greater Toronto Area (GTA), approximately $5 billion per year is invested in building and land development in the non-residential building sector.
 
In York Region, the construction sector recorded an overall increase in employment from 2006 to 2011 and in 2011 employed 30,296 people, equivalent to about seven per cent of total employment in the Region.
 
Residential construction in York Region was Canada’s third-highest in volume and the residential and commercial construction market combined was fourth-largest overall. Many of Canada’s leading construction, development and property management firms, as well as the Toronto Construction Association and the Construction Institute of Canada call York Region home.
 
York Region is home to a well-established and growing green building hub. More than 350 firms involved in green construction and development are located within York Region.
 
Nearly two thirds of the Region’s employment in the construction sector is located within the City of Vaughan with 17 per cent in the City of Markham. The remainder of the construction sector employment is distributed across other municipalities in the Region.

Finance, insurance and real estate sector
Ontario’s financial services industry, centred in the GTA, is one of North America’s top three financial services hubs, and is among the top 10 in the world. With steady growth in the financial services sector between 2000 and 2010, employment grew by 31 per cent. The majority of Canada’s largest financial services companies are located in Toronto. AMEX Canada and TD Waterhouse Inc. are among the major financial services firms with head offices located in York Region.
 
In 2010, Ontario’s insurance industry employed more than 77,000 individuals at over 6,000 businesses. The GTA is the largest insurance hub in Canada and the eighth largest insurance hub in the world. In North America, only New York’s and Chicago’s Insurance industries are larger. Between 2005 and 2010, employment in the Ontario insurance industry increased more than 12 per cent. York Region is home to nearly 11 per cent of the Ontario insurance industry, with 8,394 employees at 409 businesses. Allstate Insurance and State Farm Insurance are major insurance industry employers in York Region.
 
York Region’s finance, insurance and real estate sector has grown 37 per cent since 2006. In 2011, the sector employed 33,924 people in 1,467 businesses. Over half of the jobs are located in Markham. Nearly two thirds is concentrated in the Highway 404-Highway 7 area of Markham and Richmond Hill.
 
While there will continue to be new office development in employment areas, Regional Centres and Corridors are planned to play an increasingly important role in accommodating new employment growth in the Region, a large share of which will be employment in office buildings.
 
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Media Contact: Tim Paleczny, Corporate Communications, The Regional Municipality of York
905-830-4444 or 1-877-464-9675, ext. 1238  Cell: 905-251-6413  tim.paleczny@york.ca
The Regional Municipality of York provides services to 1.1 million residents and 41,000 businesses that employ 516,000 people
 
 
 

 
 
Founded in 1971, The Regional Municipality of York is made up of nine municipalities
and provides services to more than one million residents, 29,000 businesses and 495,000 employees.

 For more information visit us at www.york.ca Follow us on : York Region   @YorkRegionGovt  
 
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