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Healthcare sector to drive employment growth over next 5 years

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Healthcare and social assistance services are set to account for more employment growth in Australia than any other sector in the next 5 years, according to the 2015 Employment Projections report issued by the Department of Employment.
Healthcare spotlight
The projections, based on ABS employment data from November 2014 and government projections from the December 2014 Mid-Year Economic and Fiscal Outlook, expect employment in the healthcare sector to increase by 258,000 (or 18.7%) roles. Factors cited as driving this growth are the National Disability Insurance Scheme, Australia’s ageing population, and increasing demand for childcare and home based care services. Interestingly, part-time workers and women are expected to comprise much of this growth.
The sectors driving employment growth over the next 5 years
Other industries set to contribute to employment growth include education and training (15.6%), construction (13%), and professional, scientific and technical services 14.4%).
Conversely, mining and manufacturing are expected to see a decline in employment of 17.8% and 2.9% respectively.
Service-based economy driving economic growth
The strengthening of sectors such as healthcare and education are reflective of Australia’s service-driven economy, which currently accounts for 82% of real gross value added (GVA). According to the Reserve Bank of Australia, the proportion of household consumption on services, rather than goods, is up from 53% to 65%, supporting the notion that these are industries that will create jobs and growth for Australia’s future.
On its own the healthcare sector contributes 6.9% to the GVA, only preceded by the financial and insurance, and construction sectors. In terms of productivity, the Australian Healthcare sector is performing more than 20% above the national average.
In an uncertain economy, healthcare is one sector that is crucial to driving the future and prosperity of the nation. The scalable, agile nature of the contingent workforce means they are in an excellent position to help drive growth in a sector heavily reliant on flexibility and niche skills.

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