TD Economics attempts to assess the economic significance of volunteer service in Canada, estimating that volunteering in Canada produces $50 billion in economic value.

In a new report, in celebration of National Volunteer Week, TD examines the economic value of volunteer service, noting that, “Although this economic value is very real, it is seldom noticed and rarely discussed.”

The report says that the creation of economic value through volunteering occurs in two ways: the opportunity cost for spending time on unpaid work as opposed to paid work; and, the value from the social capital generated, in terms of intangible benefits. These intangibles include allowing people to develop skills that may be required for paid work; allowing them to try out a job out before undertaking sometimes costly courses and certifications; and, improved social cohesion and socio-economic outcomes.

TD says that in 2010, more than 13.3 million people completed volunteer work in Canada, devoting 2.1 billion hours in total. This is equivalent to 1.1 million full-time jobs, or 8% of full-time jobs in Canada, it says. “Based on the hours volunteered and an imputed average hourly wage, the economic value of volunteering in Canada is in the ballpark of an astounding $50 billion each year,” it says.

“This figure, though undoubtedly impressive, is likely a conservative estimate that does not include any capital investment, nor improved skills and attitudes,” it adds.

To put this figure in perspective, TD says this $50 billion estimate represents slightly less than 3% of the national economy; and, is approximately the same size as Manitoba’s economy. “If the value of volunteer work were a company, it would be in the league of the largest firms in Canada listed in the S&P/TSX Composite Index – on the basis of market capitalization – sandwiched between corporate giants like Suncor Energy and the Canadian National Railway,” it says.

While it acknowledges that, “Many would argue that the benefit of volunteering goes far beyond dollars and cents,” TD says, “putting numbers to volunteering does help to demonstrate the societal and economic importance.”

“The economic value of volunteering demonstrates that it is possible to get more than what you pay for. Sometimes the return is leaps and bounds more. At minimum, attributing a dollar value to volunteering can prompt enthusiastic conversations around the water cooler. In our view, this is a fitting way to pay tribute to the many Canadians celebrating National Volunteer Week and the critical contribution that volunteers make,” it concludes.