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Employment
2009 update on Investment Survey
August 2006
Direct employment generated by EU companies, as estimated by the survey, is some 400,000 persons. When account is taken of the flow-on (multiplier) effects of EU company activities, perhaps a further 775,000 jobs could have been created (see Employment Multiplier Effect), giving the total direct and indirect employment generated at over 1.2 million or just under 12% of the workforce.
By Member State , the UK was the largest employer with an estimated 131,000 persons or 33% of the total engaged by EU companies. France was the second largest employer (due in part to its importance in the labour intensive transport and hospitality sectors) with 85,000 direct jobs created (21%). Germany was the next most important employer with an estimated 69,000 jobs (17%), followed by the Netherlands with 37,000 (9%), Sweden with 30,000 (8%) and Denmark with around 25,000 (6%) jobs created (see Appendix 4 and Figure 2 for detail).
Source: European Commission (2006), Survey of EU companies in Australia
The survey revealed that by sector around 29% of employment by EU companies was in manufacturing, 13% in business services and 12% in construction. The mining sector accounted for 10%, finance and insurance for 9%, transport and storage and wholesale trade activities for 7% each and the hospitality industry for 5%. Overall, these eight sectors accounted for an estimated 92% of total employment by EU companies (see Appendix 5 and Figure 3 for detail).
Appendix 4: Number of EU companies in Australia , their turnover, employment and exports
by major EU Member States
Country |
Number of companies |
Estimate of turnover |
Estimate of employment |
Estimate of exports |
|
(No) |
% |
($Amn) |
% |
('000) |
% |
($Amn) |
% |
Austria |
60 |
2.6 |
500 |
0.3 |
1.1 |
0.3 |
. |
. |
Belgium |
40 |
1.7 |
2,300 |
1.3 |
5.8 |
1.5 |
300 |
3.9 |
Denmark |
70 |
3.1 |
1,700 |
1.0 |
24.5 |
6.1 |
. |
. |
Finland |
45 |
2.0 |
3,400 |
1.9 |
1.8 |
0.5 |
200 |
2.6 |
France 1 |
270 |
11.8 |
n.a. |
n.a. |
85.0 |
21.3 |
n.a. |
n.a. |
Germany 1 |
335 |
14.6 |
48,500 |
27.4 |
69.0 |
17.3 |
n.r. |
n.r. |
Ireland |
55 |
2.4 |
300 |
0.2 |
0.9 |
0.2 |
0 |
0.0 |
Italy |
90 |
3.9 |
4,200 |
2.4 |
9.9 |
2.5 |
700 |
9.2 |
Luxembourg |
10 |
0.4 |
1,100 |
0.6 |
2.2 |
0.5 |
. |
. |
Netherlands |
90 |
3.9 |
38,000 |
21.5 |
37.2 |
9.3 |
n.r. |
n.r. |
Spain |
50 |
2.2 |
600 |
0.3 |
0.7 |
0.2 |
400 |
5.3 |
Sweden 1 |
160 |
7.0 |
8,000 |
4.5 |
30.0 |
7.5 |
n.a. |
n.a. |
United Kingdom |
1,000 |
43.6 |
68,000 |
38.4 |
131.2 |
32.8 |
6,000 |
78.9 |
Other EU |
20 |
0.9 |
400 |
0.2 |
0.3 |
0.1 |
. |
. |
EU25 Total |
2,295 |
100.0 |
177,000 |
100.0 |
399.6 |
100.0 |
7,600 |
100.0 |
By State, the survey suggested that New South Wales accounted for an estimated three-quarters of employment by EU companies, Victoria for 15%, Queensland for 8%, South Australia for 2% and the other states for less than 1% in total (see Appendix 5 for detail).
Appendix 5: Share of the number of EU companies, their turnover and employment in Australia
by sector and State (percent)
Sector / State |
Number of companies |
Turnover |
Direct Employment |
|
By Sector |
|
|
Accommodation, Cafes and Restaurants |
2.2 |
1.1 |
4.8 |
Agriculture, Forestry and Fishing |
3.3 |
1.1 |
1.9 |
Communication Services |
1.5 |
1.7 |
1.2 |
Construction |
5.5 |
8.8 |
12.1 |
Cultural and Recreational Services |
1.1 |
0.1 |
0.2 |
Education |
1.5 |
0.1 |
0.2 |
Electricity, Gas and Water Supply |
0.7 |
0.1 |
0.1 |
Finance and Insurance |
11.3 |
17.4 |
9.2 |
Government Administration and Defence |
1.5 |
0.3 |
0.4 |
Health and Community Services |
2.2 |
0.7 |
1.9 |
Manufacturing |
26.2 |
42.2 |
28.8 |
Mining |
4.0 |
9.8 |
9.6 |
Personal and Other Services |
0.7 |
0.1 |
0.2 |
Property and Business Services |
7.3 |
2.5 |
12.8 |
Retail Trade |
4.4 |
1.2 |
2.3 |
Transport and Storage |
6.2 |
3.0 |
7.3 |
Wholesale Trade |
20.7 |
9.8 |
7.1 |
Total |
100.0 |
100.0 |
100.0 |
|
By State |
|
|
New South Wales |
75.8 |
62.2 |
74.5 |
Queensland |
4.4 |
5.0 |
8.4 |
South Australia |
3.6 |
0.9 |
1.7 |
Tasmania |
0.4 |
0.1 |
0.1 |
Victoria |
12.1 |
31.1 |
14.8 |
Western Australia |
3.6 |
0.8 |
0.6 |
Total |
100.0 |
100.0 |
100.0 |
Source: European Commission (2006), Survey of EU companies in Australia
ii Employment Multiplier Effect
This takes into account the flow-on effects that additional investment in one sector has on employment in all other sectors. This includes the backwards linkages of the additional labour required to produce the extra goods and services demanded by the investing companies and their employees; the additional employment created by the suppliers of these goods and services and their employees; and so on for their suppliers. Multiplier effects vary significantly by sector, with each additional job created in the food, beverage & tobacco sector estimated at creating 3.75 extra jobs in the Australian economy; while for the community, social & personal services sector only 1.23 extra jobs are created by each an additional job. The survey results were therefore weighted against the sectoral multipliers to give an overall weighted multiplier of 1.94 extra jobs for every job directly created. The multipliers used were those calculated by Valadkhani ( Applied Economics Letters, 12(14), p.867).
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For further information please contact:
John Tuckwell, Senior Adviser, Economic and Trade; Tel 02 6271 2734 ;
Email: john.tuckwell@ec.europa.eu
Media Enquiries: Roger Camilleri, Senior Adviser, Media & Public Affairs ; Tel 02 6271 2744; Email: roger.camilleri@ec.europa.eu
This page updated
October 22, 2009
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