Frankfurt Main Finance believes that the city, Germany’s financial services capital, will gain 10,000 banking sector jobs by 2021 as a result of the UK leaving the European Union.
And a new report from the group out today has estimated that these positions will lead to up to 88,000 additional non-finance jobs throughout the Rhine-Main region where Frankfurt is based.
The study, conducted by WHU – Otto Beisheim School of Management on behalf of Frankfurt Main Finance, found a “multiplier effect” under which each finance sector job will lead to between 3.6 and 8.8 additional non-finance jobs in the region.
The jobs are expected to be created in a series of sectors, including the hotel and restaurant industry, healthcare and welfare and the automobile trade.
Under the report’s “prudent scenario”, 21,000 jobs would be created in the city of Frankfurt and 36,000 in total across the Rhine-Main region. Under the “optimistic scenario”, an additional 34,000 jobs would come to the city and 88,000 across the region.
Banks and other financial services firms are currently drawing up plans to ensure that they can continue to service EU-based clients after Brexit. The likes of Morgan Stanley, Citigroup and Nomura are planning to expand their operations in Frankfurt.
Hubertus Vath, managing director of Frankfurt Main Finance, said: “The job growth will further advance the economic strength of Frankfurt and the region. A real success story for all parties involved. Now, it is important to absorb and shape this growth positively. That is a challenge. However, the additional jobs also bring the funds to invest and master the challenge.”