Finance, Insurance, Real Estate and Leasing Industry

October 2008

The Finance, Insurance, Real Estate and Leasing industry employed about 98,400 Albertans in 2007. The industry is expected to grow by a yearly average of 2.2 per cent, employing about 109,700 by 2012. The 2007 unemployment rate was 2.1 per cent (the average for all industries was 3.5 per cent).

The Finance, Insurance, Real Estate and Leasing industry includes establishments and professionals such as:

·         consumer lending companies (for example, banks, credit unions, credit card, mortgage and loan brokers)

·         investment bankers, securities dealers and other individuals involved in financial transactions (for example, the creation, liquidation or change in ownership of financial assets) or in facilitating financial transactions

·         insurance carriers, agencies and brokers (for example, life, medical, liability, property and automobile)

·         companies that manage pension and other funds

·         real estate agents and brokers, property managers and real estate appraisers

·         businesses that rent, lease or allow the use of their assets (for example, automobiles, electronics, appliances, videos, machinery, storage units, patents, trademarks) by others.

Industry Outlook

Information adapted from the Finance, Insurance, Real Estate and Leasing Industry profile (September 2008)

Alberta’s Occupational Demand and Supply Outlook (2007-2017) projects a supply shortage of finance and insurance clerks beginning in 2014. A supply surplus of insurance and real estate salespersons and buyers is expected from 2008 to 2017.

The real estate industry in Alberta has been using different methods to purchase and advertise real estate. Increasing use of the Internet has created an alternative marketplace where prospective buyers and sellers use online applications rather than traditional methods such as real estate agents, thereby lowering commission costs significantly.

Alberta should still expect a strong real estate market due to continued oil sands development and low taxes in the province. However, there may be a decline in existing home sales beginning in 2008 as economic growth moderates.

Information adapted from Alberta Career and Industry Outlook (August 2008)

Alberta’s real estate market has been robust. With continued oilsands  development, a low tax climate and other factors making Alberta an attractive place to live and work, sales of existing homes are expected to lead the nation in the years ahead, though at a slower pace.

The employment picture is mixed: the demand for finance and insurance clerks, for example, is expected to rise as supply diminishes, while a surplus is expected in insurance and real estate sales.

The rise of electronic transactions and the resultant distancing of sales professionals from their customers is partly responsible for the anticipated surplus. As in the travel industry, increasing Internet access and user savvy have empowered property buyers to do their own research and make their own deals, minimizing their exposure to the fees and commissions traditionally incurred when buying or selling homes. Coupling a lucrative housing market with increasing Internet literacy and a greater willingness to conduct online transactions, more consumers will skirt the agency structure and process.

Work in this industry

Alberta occupational profiles that describe various types of work in this industry are listed in OCCinfo's Search by Industry: Finance, Insurance and Real Estate

 

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