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Services Australia’s Five Pillar Economy

September 16, 2021 // by white

Services Australia’s Five Pillar Economy

Australia’s high-end services are rapidly growing, including legal and accounting, engineering and architecture, financial and management consulting, and financial services. They are Australia’s greatest economic hope as they continue to grow. Despite the decline of manufacturing and the end of the mining boom.

Advanced services are high-value services that require high knowledge and serve business and government rather than individuals. Advanced services can be delivered remotely via email or skype and are therefore exportable. In contrast to other professional such as hairdressing.

The overall growth in employment in the professional service sector, which includes most advanced services. Was 10.6% last year, compared with 1.4% for the whole economy.

This growth was quite exceptional, but the 4.1% annual decadal rate for professional services. Excluding mining is the highest of all major industries sectors as defined by the Australian Bureau of Statistics. Over this time, its share of total employment has risen from 7.3% up to 9.4%. These figures reflect the hours worked to adjust for part-time work.

Australian Services Organisations

This growth is however mainly domestic. It is not clear that Australian service organisations are increasing their participation. In the rapid growing global trade of advanced services. Despite the limitations of the data, it shows that trade in business services is primarily. Focused on old-growth markets like the United States and Europe, and less on meeting. The growing demand in Asia for these services, particularly China.

China’s demand of business services has increased by 7.5% annually over the past three years. To surpass US$42 billion in 2012 (the most recent available). These services were exported by Australia to China for US $129 Million, a 0.3% share of the total US$4 Billion.

These countries have restrictive policies that protect their firms and prevented us from entering these markets. This is why we failed to get into these markets. The Abbott government’s major achievement was the signing of several free trade agreements (FTAs) not only. With China but also with South Korea, Japan and South Korea. Which each reduces barriers to the export of Australian to these nations.

Industry and the Australian Services Roundtable have welcomed these FTAs. They are the industry’s peak body for the service sector. However, ANZ Bank’s assessment of the likely consequences of the China FTA suggests. That business services exports will be less affected than. Those aimed primarily at households such as motor car insurance or funds management.

Private Health Offers

Among these, ANZ identifies China’s FTA opportunity in health care. The government also includes it in its definitions of advanced services. Australia’s growing international focus on private health offers a unique opportunity to China’s aging population and chronic diseases. China will have to spend more on its health care. China’s growing middle class, which is increasingly wealthy, will be looking for better healthcare and will be willing to pay private providers.

It seems, however, that the FTA won’t offer much business opportunities and Australia’s growing business services sector will continue to be largely domestic. It will continue to miss out on Asian opportunities.

The Abbott government’s FTAs (free trade agreements) will likely only provide partial support for its Five Pillars strategy, despite their good intentions. The Abbott government must have a more structured policy development process in order to help professional firms significantly increase their exports to Asian markets if it is serious about establishing an advanced services pillar.

Understanding the role of networks of professional service firms in driving global city growth is key. These networks are often managed by large service firms such as Price water house Coopers and KPMG. They have offices in New York City and London and integrate highly specialised from some of the best teams in the world.

These networks are both the result of cultural knowledge and specialized expertise. Although the causes of the current participation gap are complex, they could be cultural.

Our education system must be relevant, high quality, and current in order to foster the skills needed to build a portfolio of globally competitive services. It would be a mistake to ignore the importance of these in modern economic growth.

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