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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 numbers ('000s) by business size

^{Source: ABS Australian Industry, Table 5, May 2024 and ASBFEO calculations, private sector industry. The ABS publish this data for selected industries, which excludes financial and insurance services. Data are in thousands.}

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 workforce¹ in 2022-23 as shown in Table 1.

Chart 1: Employment numbers ('000s) by business size

^{Source: ABS Australian Industry, Table 5, May 2024 and ASBFEO calculations, private sector industry. The ABS publish this data for selected industries, which excludes financial and insurance services. Data are in thousands.}

Chart 1 shows how the pattern of employment has changed very little over the past three years.

Table 2: Employment numbers ('000s) by industry, 30 June 2023

^{Source: ABS Australian Industry, Table 5, May 2024 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. Data are in thousands. Totals may not sum due to rounding.}

Table 2 shows the industry sectors where small businesses make the greatest contribution to employment. The top three industry sectors are:

• Construction (employing 806,000 people in June 2023)
• Professional, scientific and technical services (employing 621,000 people in June 2023)
• Accommodation and food services (employing 531,000 people in June 2023).

Notably, 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 (78% of employment by small businesses)
• Rental, hiring and real estate services (75% of employment by small businesses)
• Other services, e.g. personal services (68% of employment by small businesses).

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