Territory Stories

Budget 2013/14 Northern Territory Economy



Budget 2013/14 Northern Territory Economy

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Tabled paper 295


Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT




Tabled by David Tollner


Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.




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Department of the Treasury and Finance

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Structure of the Economy 13 Northern Territory Economy Employment by Industry In employment terms, the Territory has a higher proportion of people employed in service industries, at 90.7 percent compared with 86.5percentnationally. This is primarily attributable to the Territorys comparatively large public sector. Employment by industry data is based on the Labour Force Survey (LFS) published by the ABS. The LFS only captures resident employment in each jurisdiction and does not include fly-in fly-out (FIFO) workers who are not resident to the Territory. The FIFO workforce can represent a significant proportion of employment on mining and construction sites reflecting the remoteness of these sites, the highly specialised nature of employment and skilled labour shortages in the Territory (see Chapter5:LabourMarket for more information). Public administration and safety is the largest employer in the Territory, accounting for 14.3percent of Territory employment in 2011-12, compared with 6.4per cent nationally. The relatively high contribution of public administration and safety to total employment reflects the diseconomies of scale, population dispersion, high service delivery needs of the population and its labour-intensive nature. The proportion of people employed in public administration and safety has fallen in relative terms over the past ten years due to strong growth in other industries, particularly construction, and the increasing diversity of the Territory economy. Source: ABS Cat. No. 6291.0.55 The healthcare and social assistance industry is the Territorys second largest employer, accounting for 11.1percent of employment, driven by the high cost of providing services to a small and widely dispersed population that has higher service delivery needs than the national average. The construction industry accounted for 10.3percent of employment in the Territory in 2011-12 making it the third largest employer. It is a key driver of employment growth both directly, through jobs on site and indirectly by creating demand for new goods and services especially in sectors such as retail. Chart 1.3: Industry Contributions to Employment, 200102 to 201112 0 5 10 15 20 25 02 03 04 05 06 07 08 09 10 11 12 % Year ended June Retail trade Construction Public administration and safety Education and training Mining Healthcare and assistance