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ICT sector employment & labour productivity

by ICT sub-sectors

ICT sector employment

In 2009, over 6.1 million people worked in the EU ICT sector, representing 2.7% of employment in the EU. ICT employment is highly concentrated in ICT services: 5.1 million people worked in ICT Services (85%) whereas 0.9 million worked in ICT Manufacturing (15%). ICT sector employment overall decreased by 3% - in real terms, 183 000 people - from 2008 to 2009.  This was made up of 119 000 people in Manufacturing (11%) and 64 000 in Services (only 1.2%, in spite of the economic crisis). The decrease of employment in ICT Manufacturing was therefore higher in both relative and absolute terms than in ICT Services. 

The figure below plots the share of ICT employment in total employment by ICT sub-sectors. As is the case for Value Added, ICT employment in the EU is highly concentrated in just two Service sectors, Computer programming, consultancy and related activities (NACE 62), with 2.8 million people (1.2% of total employment), and Telecommunications (NACE 61) with 1.1 million people (0.5% of total employment). In 2009, these two sub-sectors represented 63% of total ICT employment. In the same year, ICT Trade services employed 0.5 million people (0.2% of total employment).

In ICT Manufacturing, most employment is provided by two subsectors: Manufacturing of electronic components and boards (NACE 261) employs 0.4 million people (0.2% of total employment) and Manufacturing of communication equipment (NACE 263) employs 0.3 million people (0.1% of total employment).

From 2008 to 2009, ICT Services employment remained constant in Computer programming, consultancy and related activities (NACE 62) and decreased by 2.7% in Telecommunications (NACE 61). Employment increased by 7% in Data processing, hosting and related activities; web portals (NACE 631), to 0.44 million people in 2009. In ICT Manufacturing, employment decreased by 12% in Manufacturing of communication equipment (NACE 263) and by 8% in Manufacturing of electronic components and boards (NACE 261).

 

Share of ICT employment in total employment by sub-sectors (based on head counts, 2008-2009)

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS [Download full image]

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The figure below provides a comparison of employment in the ICT Manufacturing and Services sub-sectors by Member States (MS) in 2009. The most striking observation is the contribution of the new Member States. These 12 countries employed in total almost 30% of all employees from the EU ICT Manufacturing sub-sector, significantly above the 20% employed by Germany. In Services, however, their contribution was only half that value (14%). In terms of single-country contributions, Germany dominated both ICT Manufacturing and Services (providing 18-20% of EU ICT employment). France, Italy and the UK together contributed 31% and 42% to total EU ICT Manufacturing and Services employment, respectively. Compared to other analyzed indicators, the differences between individual country shares (Manufacturing vs. Services) remained quite stable.

 

Comparison of ICT Manufacturing and Services:

distribution of ICT employment among biggest Member State contributors (2009)

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS [Download full image]

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ICT Sector Labour Productivity

In 2009, labour productivity per person in ICT Manufacturing in the EU was € 41 170 while in ICT services it was € 84 170. The highest labour productivity was achieved in Telecommunications (NACE 61), where it was more than € 170 000 (see the figure below). Between 2008 and 2009, ICT labour productivity in the EU contracted by 4%. This decrease was more intense in ICT Manufacturing (on average 21%) than in Services (3%), labour productivity being far more sensitive to business cycles  in manufacturing than in services. The biggest drop was recorded in Manufacture of magnetic and optical media (NACE 268), almost 83%, while the biggest increase was in Software publishing (NACE 5820), more than 35%.

 

ICT Labour productivity by sub-sectors (thousand EUR per person, 2008-2009)

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS [Download full image]

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