New economic realities, post-recession regulations and technological changes are creating profit pressures on financial services firms. And, that’s leading to more jobs in Phoenix.
Darin Mellot co-authored an industry study for commercial real-estate firm CBRE. It shows banks, insurance companies and other financial firms are moving more into non-traditional markets that offer good value.
“You can’t just have low costs,” he said. “You also need to be able to get the talent you need and when you look at it in those terms Phoenix is very cost effective.”
Phoenix’s lower labor and real-estate costs compared with cities like New York and Los Angeles are adding up to more jobs. Since 2010, the study found only Dallas-Fort Worth with 284,600 jobs has added more financial services jobs than Phoenix with 173,700.