Identifying Australia’s High Employment Generating Industries

Abstract

Using the latest Australian input-output (IO) table, this paper aims to identify the high employment generating industries. First, the direct and indirect contribution of the tradeable industries to employment are quantified by adopting the “loss of the industry” or “Shut-down of industry” approach. Second, the sectoral employment elasticities are calculated to determine the leading employment generating sectors. The empirical analysis and rankings undertaken in this study shed some light on the sectoral potentials in relation to the creation of jobs in the economy. Further, this study provides some inputs for setting the effective rate of assistance for import competing industries.