ICT Industry Analysis


 

PREDICT 2015 REPORT

ICT sector employment and labor productivity - PROD

 

Figure 1–4-a: ICT sector employment share of total employment. European Union (2006-2012)   Figure 1–4-b: ICT sector employment and total employment annual growth rates. European Union (2006-2012)

 

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS

The ICT sector employment share of total EU employment (2.76%) is lower than that of VA and has remained fairly stable. However, ICT sector employment is more volatile than the total. After two years of contraction, ICT sector employment grew at a rate of 2.87% and 0.97% in 2011 and 2012 respectively (Figure 1-4)

 

 
Figure 1–5-a: Distribution of employment shares for ICT manufacturing and ICT services. European Union (2006-2012)   Figure 1–5-b: Annual growth rates of ICT manufacturing and ICT services employment. European Union (2006-2012)

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS

Employment in the ICT service sectors gained weight along the period and did not suffer the adverse effect of the economic crisis (2008-2010) to the same extent as ICT manufacturing employment. In 2012 the prospects worsened as compared with 2011: ICT services still generated employment, despite of the second recession, whereas the ICT manufacturing sector reduced it (Figure 1–5)

 

Figure 1–6: ICT sector employment share on total employment and comparison with non-ICT economic activities. European Union (2006-2012)

a) Manufacturing
 
b) Services

 

Note: Agriculture, forestry and fishing; mining and quarrying; electricity, gas, steam and air conditioning supply; water supply, sewerage, waste management and remediation activities; and construction are not included in either manufacturing or services industries.
Source: Eurostat, elaborated by Ivie and JRC-IPTS.  

Employment in ICT manufacturing sectors represents around 0.4% of total employment, while in the ICT services sectors this figure stands at around 2.3%. Of the sectors with close relation with ICT/R&D, Wholesale and retail trade, repair or motor vehicles and motorcycles (14.52%) and Human health and social work activities (9.98%) present the highest shares (Figure 1-6)

 

ICT Sector labour productivity

Figure 1–7-a: ICT sector and total labour productivity. European Union (thousand constant [base year 2005] EUR per person; 2006-2012)   Figure 1–7-b: ICT sector and total labour productivity annual real growth rates. European Union (2006-2012)

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS

Labour productivity in the ICT sector was in 2012 44.45% higher than the total. Both experienced a severe contraction in 2011, specially marked in the ICT sector. In 2012 total labour productivity accelerated its fall while ICT labour productivity slowed down but still presenting negative rates of growth (Figure 1–7).

 

 

Figure 1–8-a: ICT sector labour productivity. Manufacturing and services. European Union (thousand constant [base year 2005] EUR per person; 2006-2012)   Figure 1–8-b: ICT sector labour productivity annual real growth rates. Manufacturing and services. European Union (2006-2012)

 


Source: Eurostat, elaborated by Ivie and JRC-IPTS

Labour productivity is 80% higher in the ICT services sector than in manufacturing and presents a less cyclical pattern. In the last two years ICT sector labour productivity suffered a general decrease, especially intense in ICT manufacturing. Its drop was even more severe in 2012 (-8.07%) than in 2011 (-6.17%) (Figure 1–8)

 

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