The value that small business contributes to employment numbers in Australia is one indication of their contribution to the Australian economy. This can be measured by comparing the number of employees working in small business with employees in other business sizes and similar break downs within industries.
Table 1: Employment by business size
|
Size |
2018-19 |
2019-20 |
2020-21 |
|||
|
('000) |
% |
('000) |
% |
('000) |
% |
|
|
Small Business (0-19 Employees) |
4,698 |
41 |
4,664 |
41 |
5,019 |
42 |
|
Medium Business (20-199 Employees) |
2,911 |
25 |
2,758 |
24 |
2,840 |
24 |
|
Large Business (200+ Employees) |
3,864 |
34 |
3,881 |
34 |
4,026 |
34 |
|
Total |
11,472 |
100 |
11,303 |
100 |
11,884 |
100 |
Source: ABS Australian Industry, Table 5, May 2022 and ASBFEO calculations, private sector industry. The ABS publish this data for selected industries, which excludes financial and insurance services.
Small businesses (as defined by the ABS as those employing 0-19 employees) employed over 5 million people, which is 42% of the private sector workforce[1] in 2020-21 as shown in Table 1.
[1] Excluding financial and insurance services industry.
Chart 1: Employment by business size
Source: ABS Australian Industry, Table 5, May 2022 and ASBFEO calculations, private sector industry. The ABS publish this data for selected industries, which excludes financial and insurance services.
Chart 1 shows how the pattern of employment has changed very little over the past three years.
Chart 2: Total employment by industry ranked by number of people employed by small business, 30 June 2021
Source: ABS Australian Industry, Table 5, May 2022 and ASBFEO calculations, private sector industry. The ABS publish this data for selected industries, which excludes financial and insurance services.
Chart 2 shows the industry sectors where small businesses make the greatest contribution to employment. The top three industry sectors are:
- Construction (employing 793,000 people in June 2021)
- Professional, scientific and technical services (employing 571,000 people in June 2021)
- Accommodation and food services (employing 508,000 people in June 2021).
Table 2: Employment by industry, ordered by small business proportionate share – 2020-21
|
Industry Sector |
Small (‘000) |
Medium (‘000) |
Large (‘000) |
All (‘000) |
Small Business share (%) |
|
Agriculture, forestry and fishing |
360 |
59 |
20 |
439 |
82 |
|
Rental, hiring and real estate services |
309 |
63 |
41 |
413 |
75 |
|
Construction |
793 |
247 |
156 |
1,196 |
66 |
|
Other services |
351 |
115 |
68 |
534 |
66 |
|
Accommodation and food services |
508 |
297 |
249 |
1,055 |
48 |
|
Professional, scientific and technical services |
571 |
342 |
287 |
1,200 |
48 |
|
Transport, postal and warehousing |
281 |
114 |
245 |
639 |
44 |
|
Arts and recreation services |
71 |
57 |
89 |
217 |
33 |
|
Wholesale trade |
180 |
190 |
198 |
569 |
32 |
|
Retail trade |
439 |
253 |
695 |
1,388 |
32 |
|
Manufacturing |
260 |
290 |
289 |
839 |
31 |
|
Health care and social assistance (private) |
431 |
265 |
750 |
1,446 |
30 |
|
Information media and telecommunications |
45 |
34 |
87 |
167 |
27 |
|
Administrative and support services |
250 |
296 |
384 |
930 |
27 |
|
Education and training (private) |
116 |
139 |
195 |
451 |
26 |
|
Public administration and safety (private) |
19 |
30 |
42 |
90 |
21 |
|
Electricity, gas, water and waste services |
18 |
22 |
82 |
123 |
15 |
|
Mining |
16 |
26 |
147 |
189 |
8 |
|
Total selected industries |
5,019 |
2,840 |
4,026 |
11,884 |
42 |
Source: ABS Australian Industry, Table 5, May 2022 and ASBFEO calculations, private sector industry. The ABS publish this data for selected industries, which excludes financial and insurance services. Small businesses are those with 0-19 employees, medium businesses are those with 20-199 employees and large businesses are those with 200+ employees. Totals may not sum due to rounding.
Notably in table 2, the private sector industries most reliant on small business for employment (that is, with two thirds or more of people employed by small businesses) were:
- Agriculture, forestry and fishing (82% of employment by small businesses)
- Rental, hiring and real estate services (75% of employment by small businesses)
- Construction (66% of employment by small businesses)
- Other Services (66% of employment by small businesses).
