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1301.0 - Year Book Australia, 2002  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 25/01/2002   
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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 1,239,400 private sector businesses in Australia in 1999-2000, some 812,200 or about two-thirds were in the service industries. For small businesses (those with less than 20 employees), the proportions are similar, service industries accounting for 66% of just over 1.2 million small businesses in Australia (table 21.1).


21.1 NUMBER OF BUSINESSES - 1999-2000

Industry
Units
Small businesses
Other businesses
Total

Goods producing industries
’000
401.4
25.8
427.2
Service industries
’000
780.5
31.7
812.2
Total all industries
’000
1,181.9
57.5
1,239.4
Businesses in service industries as a percentage of all businesses
%
66.0
58.6
65.5

Source: Small Business in Australia Update, 1999-00 (1321.0.55.001); ABS data available on request.


Although the service industry sector accounted for two-thirds of the gross value for all industries, the goods producing industries sector showed the greatest increase in output in chain volume terms (measuring 'real' output unaffected by price change), with an increase of 21% compared to 16% in the service industries sector over the period from 1994-95 to 1999-2000 (table 21.2). This resulted in a decrease in the service industries' share of total output, from 67.2% in 1994-95 to 62.8% in 1999-2000.


21.2 GROSS VALUE ADDED(a), Chain Volume Measures(b) by Industry

1994-95
1999-00
Increase

$m
$m
%

Goods producing industries -
- Agriculture
12,582
19,005
51.1
- Mining
21,442
26,183
22.1
- Manufacturing
66,644
75,560
13.4
- Electricity, gas and water
10,399
11,314
8.8
- Construction
26,077
34,434
32.1
- Total
137,144
166,496
21.4
Service industries -
- Wholesale trade
26,229
33,942
29.4
- Retail trade
26,565
32,737
23.2
- Accommodation, cafes and restaurants
10,348
12,692
22.7
- Transport and storage
28,382
34,510
21.6
- Communication services
11,560
19,549
69.1
- Finance and insurance
27,637
41,451
50.0
- Property and business services
51,819
72,938
40.8
- Government administration and defence
23,130
22,702
-1.9
- Education
24,671
26,294
6.6
- Health and community services
30,508
32,771
7.4
- Cultural and recreational services
9,024
10,097
11.9
- Personal and other services
11,288
13,225
17.2
- Total
281,161
*352,908
15.9
Total all industries(c)
418,305
519,404
24.2

%
%
Service industries as a percentage of all industries
67.2
62.8
. .

(a) At basic prices, which include subsidies, but are before any taxes on products.
(b) Reference year for chain volume measures is 1998-99.
(c) Excludes ownership of dwellings.
* Revised 21 March 2002

Source: Australian System of National Accounts, 1999-00 (5204.0).


The largest contributor to the service industry sector in 1999-2000 was the property and business services industry, which accounted for 22% of the gross value added of the service industries sector and 14% of the gross value added of all industries. The next largest within the service industries sector was finance and insurance services, which accounted for 13% of the gross value added of the sector.

In the five year period 1994-95 to 1999-2000, goods producing industries' gross value added increased, on average, by 17% per year in real terms. In contrast, the gross value added of the services industries increased by an annual rate of 6%.

Strong growth was recorded in both the goods producing and service industries sectors, with the communication services industry recording the largest percentage increase in output in the five year period, an increase of 69% in real terms, the equivalent of an annual growth rate of 11%. The next highest growth rate was recorded in the goods producing industries by the agriculture industry, with a 51% increase in output over the five year period, an annual growth rate of nearly 9%. The lowest growth in real terms in the period 1994-95 to 1999-2000 was in the service industries sector, where government administration and defence recorded a 1.9% decrease, and education and health, and community services, both recorded a 7% increase.

As table 21.3 shows, in terms of employment the service industries sector is dominant, accounting for 73% of total employment for all industries in 1999-2000. Total employment in the service industries sector in 1999-2000 was 6,497,800 persons.


21.3 EMPLOYED PERSONS, By Industry

1994-95(a)
1999-2000(a)
Increase

’000 persons
’000 persons
%

Goods producing industries -
- Agriculture
403.3
437.5
8.5
- Mining
86.1
78.2
-9.2
- Manufacturing
1,115.3
1,113.1
-0.2
- Electricity, gas and water
86.8
64.5
-25.6
- Construction
589.8
695.4
17.9
- Total
2,281.3
2,388.7
4.7
Service industries -
- Wholesale trade
493.6
494.9
0.3
- Retail trade
1,187.0
1,324.6
11.6
- Accommodation, cafes and restaurants
377.2
432.8
14.7
- Transport and storage
381.4
407.3
6.8
- Communication services
148.4
169.3
14.1
- Finance and insurance
312.9
327.5
4.7
- Property and business services
749.8
988.7
31.9
- Government administration and defence
357.3
345.8
-3.2
- Education
555.6
609.3
9.7
- Health and community services
720.2
828.1
15.0
- Cultural and recreational services
189.2
217.1
14.7
- Personal and other services
303.7
352.3
16.0
- Total
5,776.2
6,497.8
12.5
Total all industries
8,057.4
8,886.5
10.3

%
%
Service industries as a percentage of all industries
71.7
73.1
. .

(a) Annual average.

Source: Labour Force, Australia (6203.0).

In the five year period from 1994-95, employment in the service industries increased by 721,600 persons or 13%, representing an annual growth rate of 2%. In the same period the goods producing industries recorded an increase in employment of 107,400 persons. This represented an increase of 5%, an average annual growth rate of just under 0.9%.

Within the service industries, the major employing industry was retail trade with employment in 1999-2000 of 1,324,600 persons, accounting for 15% of all employment and 20% of employment in the service industries sector. Other large employing service industries were property and business services (988,700 persons), health and community services (828,100 persons), and education (609,300 persons). The industries showing the greatest employment growth in the five year period since 1994-95 were property and business services, with a 32% increase from 749,800 persons to 988,700 persons, personal and other services with an increase of 16% in the period, and health and community services with an increase of 15%. In contrast, employment in the government administration and defence sector fell by 3% over this period.

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