When it comes to economic development and competitive communities, culture is often overlooked, but recent studies confirm it plays a major role in our economy. It’s also a driving factor for skilled workers looking to relocate.

According to Statistics Canada, the estimated direct economic impact of Canada’s culture industries was $61.7 billion in 2014, or 3.3 per cent of the country’s gross domestic product (GDP). To put this in perspective, the GDP contribution of culture industries is much larger than that of agriculture, forestry, fishing and hunting combined ($29 billion).

Culture industries contribute more to our economy than accommodation and food ($38 billion) or utilities ($43 billion). Sports fans will be surprised to hear the direct economic impact of culture is 10 times that of the sports sector ($6.1 billion).

More than 670,000 Canadians delivered cultural products and services in 2014 — more than three per cent of our workforce. That’s nearly five times the number employed in the auto sector. Their products included audio-visual media, written works, visual and applied arts, live performance, heritage and libraries.

Employment in this sector has grown faster than the overall labour force, increasing 50 per cent over the last 25 years.

The same report demonstrates the economic importance of arts and culture in Ontario. It shows the province is responsible for 45 per cent of the total GDP of Canada’s arts, culture and heritage sector and provides almost 302,000 jobs.

To appreciate the economic impact of culture, you need to drill down to the local level.

For example, the Tom Thomson Art Gallery in Owen Sound, plans to expand into a $10.5-million, 35,000-square-foot visual arts centre. The new “Tom” will serve as a cultural “living room” for the city, visitors from across the region, the country and beyond.

Two different impact calculators were used to estimate the economic contribution of the new facility. They showed the expanded gallery will generate between $3.5 million and $8.5 million in annual economic benefits to the City and region. Its construction would bring one-time, direct and indirect benefits of $11 million to the community. This overall return on investment would excite any venture capital firm.

Culturally vibrant communities benefit in another critical way. A 2016 study for Business for the Arts found municipalities and businesses that make investments in arts and culture have more success attracting skilled workers.

Two-thirds of the 500 skilled Ontario workers surveyed by Nanos Research said a community with a flourishing arts and culture scene was a key factor when relocating for work. Apparently, the same percentage of the 508 businesses surveyed agreed with this finding.

However, only 25 per cent of the businesses felt they were located in a thriving arts and culture community. And less than one-third of the businesses thought that participating in arts and culture activities was important for their employees. Many invested heavily in sports.

Yet Nik Nanos, chairperson of Nanos Research, said, “When we listen to Ontarians that are part of the knowledge economy, their level of affinity to the arts and culture is exceptionally high. These workers were more likely to be engaged in a variety of arts and cultural activities than watching sports events.”

Nicole Anderson, the CEO of Business for the Arts, points out this isn’t saying sports aren’t important. “But $50,000 to an arts and culture organization is going to go a lot further. It’s a drop in the bucket in the sports field.”

Many large companies direct some of their corporate philanthropy to supporting culture. But smaller firms and municipalities committed to growth and attracting people, are finding creative ways to use arts and culture as well.

In a recent Globe and Mail article, Anderson cited a law firm in Owen Sound that partnered with the local Roxy theatre to assemble a troupe and produce a show for colleagues and clients. “It seems to cement the relationship not only between the arts organization and legal services, but also internally for the law firm. Imagine the bond you create when you provide a Second City experience,” Anderson said.

Likewise, the City of Owen Sound itself says thanks to hundreds of volunteers every year by inviting them and a guest to enjoy a local little theatre production. A former Culture Capital of Canada, the branding line of the city is “where you want to live”. It backs up this outreach approach with a thriving music, theatre and arts scene with several performance centres.

The bottom line? Businesses that want to keep and attract top employees — and thank clients — should work with local arts and culture organizations. Municipalities that want to keep their young people and attract skilled workers need to support their cultural industries.

Culture is a key component in today’s business and municipal competitiveness.

R. Michael Warren is a former corporate director, Ontario deputy minister, TTC chief general manager and Canada Post CEO. r.michael.warren@gmail.com