How Much Professional Services Make Up Economy

The Australian professional person services manufacture has grown by 30% since the beginning of the decade to get the fourth largest industry group in the country. New information released on Tuesday past the Australian Bureau of Statistics has revealed that the professional person, scientific and technical services sector at present employs over 1.one million people.

Equally Australia'due south economy has been shifting since the end of the mining boom roughly 20 years agone, at that place has been a growing number of white collar workers. The professional services sector currently sits behind healthcare, retail and accommodation, and food services which accept been driven by an ageing population and growing levels of tourism across the land.

Data released by the ABS shows that 1 out of every 11 Australian workers is a white collar worker. Out of the country's 13.7 1000000 workers, ane.one one thousand thousand are employed inside the professional services sector. The sector has overtaken both manufacturing likewise as structure in the seven years to September 2017 to make it 1 of the largest sectors in the land.

Whilst Australia is still a large commodity exporter and the construction industry has recently been experiencing sustainable growth, the economy as a whole is first to diverge. This shift marks the beginning of a transition towards an information society or digital economy, the likes of those seen in North and Western European nations or the city states of Asia.

Digital economic transition is as well a key commuter of the growth in professional services, particularly in the loftier-end, prestigious consulting manufacture. With jobs across all sectors from taxation and audit to human resources becoming increasingly automated, traditional accounting firms are extending into digital and consulting.

Although data was non available on the breakdown of jobs in the professional services sector, the Australian consulting industry is currently one of the nearly profitable in the world in relation to the state's national income. Currently worth over $4.half-dozen billion a year, the consulting market of Australia relative to Gross domestic product is now 0.39%, which is higher than both that of the UK (0.38%) and the US (0.32%).

Professional services grow to become one of Australia's largest industry groups

Australian consulting industry 2018

Australia's consulting manufacture is growing at an exponential rate with the Large 4 consulting firms – KPMG, EY, PwC and Deloitte – all posting double digit growth in the past year. Growth has been based both locally and internationally due to a number of factors including heavy public sector funding, broad contest and international expansions.

Every bit Australia is on Asia'due south doorstep, the consulting industry is profiting from a growing number of expertise seeking companies which meet Commonwealth of australia as a reputable business heart. Australia is also a logical step for many Asian firms looking to expand their international footprint whilst still existence shut to home.

At home, many firms – both local and international – are looking to capitalise on the growing number of businesses looking towards digital transformation. "Clients' want to undertake major cantankerous-functional digital transformation projects are at present translating into an uplift in consulting spend beyond most sectors, but particularly in healthcare, the public sector and financial services," said Source'due south director Edward Haigh.

Professional services growth

Professional services every bit a whole grew to a record high in the past yr with the number of hours worked in professional services jumping eleven.viii% to 481.2 million hours. The ABS statistics show that whilst the total labour income from the unabridged economy only grew 3.four% over the year to September 2017, the total labour from professional services grew an amazing sixteen%.

Chief economist at the ABS, Bruce Hockman said the report confirms the shift in the largest manufacture sectors in the land. Professional services now account for eight.6% of total employment in Commonwealth of australia and make up more than 1.ane million jobs.

"These new estimates evidence that, through the year to September 2017, the professional, scientific and technical services industry increased by over 13 per cent, the fastest of any industry in the economy," Hockman said.

Interestingly, Hockman also touched on the fact that a large minority of these jobs were not full time, but rather side jobs. "The Australian Labour Account showed that over seventy,000 of these jobs in the professional, scientific and technical services industry were secondary jobs, where the person had another main job."

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