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1301.0 - Year Book Australia, 2004  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 27/02/2004   
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The service industries sector is the largest component of the Australian economy in terms of number of businesses, employment and gross value added.

Of the estimated 1,164,100 private sector businesses in Australia in 2000-01, some 833,100 (72%) were in the service industries sector. Small businesses (those with less than 20 employees), in the service industries sector accounted for 71% of the 1.1 million small businesses in Australia (table 20.1).

20.1 BUSINESSES - 2000-01

Industries
Units
Small businesses
Other businesses
Total

Goods producing
’000
322.3
8.7
331.0
Service
’000
799.7
33.4
833.1
Total
’000
1,122.0
42.1
1,164.1
Businesses in service industries as a percentage of all businesses
%
71.3
79.3
71.6

Source: Small Business in Australia, 2000-01 (1321.0).

The service industries sector accounted for 68% of the gross value added for all industries in 2001-02, and also showed the greatest increase in output in chain volume terms (measuring 'real' output unaffected by price change), with an increase of 24% over the period from 1996-97 to 2001-02 (table 20.2). In comparison, the goods producing industries recorded an increase of 15% over the same period.

20.2 GROSS VALUE ADDED(a), Chain volume measures(b)

Industries
Units
1996-97
2001-02

Goods producing
Agriculture, forestry and fishing
$m
18,492
22,119
Mining
$m
28,858
33,865
Manufacturing
$m
67,182
75,573
Electricity, gas and water
$m
14,101
15,226
Construction
$m
32,696
39,011
Total
$m
161,329
185,794
Service
Wholesale trade
$m
29,188
34,714
Retail trade
$m
28,438
34,646
Accommodation, cafes and restaurants
$m
12,194
15,350
Transport and storage
$m
28,270
33,988
Communication services
$m
14,536
19,814
Finance and insurance services
$m
35,776
46,943
Property and business services
$m
56,065
77,162
Government administration and defence
$m
23,297
25,440
Education
$m
27,624
30,317
Health and community services
$m
32,977
40,438
Cultural and recreational services
$m
9,808
11,821
Personal and other services
$m
12,701
15,829
Total
$m
310,874
386,462
Total(c)
$m
472,203
572,256
Service industries as a percentage of all industries
%
65.8
67.5

(a) At basic prices, which include subsidies, but are before any taxes on products.
(b) Reference year is 2000-01.
(c) Excludes ownership of dwellings.
Source: Australian System of National Accounts (5204.0).

The largest contributor to the service industries sector in 2001-02 was the property and business services industry, which accounted for 20% of the gross value added of the sector and 13% of the gross value added of all industries. The next largest within the service industries sector was finance and insurance services, which accounted for 12% of the gross value added of the sector.

In the five-year period 1996-97 to 2001-02, the gross value added of the services industries sector increased by an average annual rate of 4%, while that of the goods producing industries recorded an average annual growth rate of 3%.

Within the service industries sector, the property and business services industry recorded the largest percentage increase in output in the five-year period (38% in real terms), which is the equivalent of an average annual growth rate of 7%. The next highest growth rate was recorded by the communications industry, with a 36% increase in output over the five-year period, and an average annual growth rate of 6%. The lowest increase in real terms in the service industries sector over the period was by the government administration and defence industry with an increase of 9%.

In terms of employment, the service industries sector remained dominant, accounting for 75% of total employment for all industries in 2002-03 (table 20.3). Total employment in the service industries sector in 2002-03 was 7,046,800 persons.

20.3 EMPLOYED PERSONS

Industries
Units
1997-98(a)
2002-03(a)

Goods producing
Agriculture, forestry and fishing
’000
430.8
372.4
Mining
’000
82.7
88.3
Manufacturing
’000
1,121.2
1,131.4
Electricity, gas and water
’000
64.4
72.5
Construction
’000
597.1
729.9
Total
’000
2,296.2
2,394.5
Service
Wholesale trade
’000
500.0
449.5
Retail trade
’000
1,244.0
1,455.8
Accommodation, cafes and restaurants
’000
402.9
455.0
Transport and storage
’000
394.2
411.1
Communication services
’000
148.7
173.7
Finance and insurance
’000
313.3
351.6
Property and business services
’000
897.1
1,092.7
Government administration and defence
’000
339.3
430.2
Education
’000
583.4
666.1
Health and community services
’000
799.4
936.3
Cultural and recreational services
’000
203.4
241.0
Personal and other services
’000
339.5
383.8
Total
’000
6,165.2
7,046.8
Total
'000
8,461.4
9,441.3
Service industries as a percentage of all industries
%
72.9
74.6

(a) Annual average of quarterly data.
Source: Labour Force, Australia (6202.0).

In the five-year period from 1997-98, employment in the service industries increased by 881,600 persons or 14%, representing an average annual growth rate of 3%. In the same period the goods producing industries recorded an increase in employment of 98,300 persons. This represented an increase of 4% and an average annual growth rate of just over 0.8%.

Within the service industries sector, the major employing industry was retail trade with employment in 2002-03 of 1,445,800 persons, accounting for 15% of all employment and 21% of total employment in the sector. Other large employing service industries were property and business services (1,092,700 persons), health and community services (936,300 persons), and education (666,100 persons).

The service industries showing the greatest employment growth in the five-year period since 1997-98 were government administration and defence, with a 27% increase from 339,300 persons to 430,200 persons, property and business services with an increase of 22% in the period, and cultural and recreation services with an increase of 18%. The transport and storage sector showed the smallest increase over the five-year period of 4%, while the wholesale trade sector recorded a decrease of 10%.

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