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8558.0 - Employment Services, Australia, 1998-99  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 05/10/2000   
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  • Employment services industries generate $7.8 billion in income (Media Release)

MEDIA RELEASE

Ocotober 5, 2000
Embargoed 11:30am (AEST)
192/2000

Employment services industries generate $7.8 billion in income

The employment services industries generated $7,818 million in income during 1998-99, according to figures released by the Australian Bureau of Statistics (ABS) today.

There were 2,093 businesses in the employment services industry in 1998-99. Of these 1,357 were mainly involved in the contract staff services industry with the remaining 736 mainly involved in the employment placement services industry (including Job Network providers). These businesses made 2,736,333 job placements during 1998-99, of which 2,302,454 were on-hired temporary placements and 433,879 were permanent placements.

Employers requiring on-hired staff services generated the greatest proportion of the total industry income ($5,784m), with a further $636m coming from Job Network contracts and $548m from other permanent placement and personnel recruitment services.

The total expenses for employment services industries was $7,404m. Labour costs were easily the highest single expense at $5,758m (78% of total expenses). However, while $1,132m was paid for direct employees working in the employment services businesses, $4,626m was paid for employees on-hired to other businesses.

The operating profit before tax of these businesses was $426m, representing an operating profit margin of 5.6%. This profit margin varied between the two industries with the margin being 19.7% for the employment placement industry and 3.7% for the contract staff services industry.

There were 307,849 people working for businesses in these industries, with 28,912 people directly employed and 278,937 on-hired employees. Of the 28,912 direct employees, 14,439 were employment consultants. Females dominated the direct employment, accounting for 62% of the people directly employed.

Over half (53%) the businesses in the employment services industries had direct employment of less than five people. These small businesses accounted for 8% of the direct employment and 10% of the income of the industries. In comparison there were 38 businesses with direct employment of 100 or more people, accounting for 41% of direct employment and 42% of the income. In addition these large businesses accounted for 40% of the operating profit before tax of the industries.

The three states that accounted for the bulk (77%) of the industry income were New South Wales ($2,607 million or 33%), Victoria ($2,272 or 29%) and Queensland ($1,132 or 15%).

Further details can be found in Employment Services, Australia, 1998-99 (cat. no. 8558.0) available from ABS bookshops.

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