Contributing to the economy through employment
The level of direct employment in asset management companies is another important measure of the contribution of the industry to the overall economy. Based on data collected from EFAMA members, we estimate that around 120,000 individuals are directly employed by the asset management industry across Europe.
When looking at the overall employment generated by the asset management industry, it is important to consider the indirect employment linked to fund distribution, which remains mostly handled by banks and financial advisors. Related services and support functions, such as accounting, auditing, custodianship, IT, legal, marketing, research and FinTech, should also be factored in. Taking into account all these related services along the asset management value chain, we estimate that European asset managers, and all the firms providing services to the asset management industry, generate some 670,000 full-time equivalent jobs.
The image below shows the services offered by various providers along the investment fund value chain. Thisincludes product development, investment management, fund administration, depositary services, tax, distribution and advice, and more. It's important to know that these services are all closely regulated toensure protection and fair treatment of the investors.
