5260.0.55.001 - Information paper: Experimental Estimates of Industry Multifactor Productivity, 2007

ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 07/09/2007 First Issue

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Contents >> Electricity, gas and water >> Labour inputs

LABOUR INPUTS

Figure 6.5 shows total hours worked for the Electricity, gas & water industry between 1985-86 and 2005-06. The chart shows that there was a marked decline in total hours worked between 1985-86 and 1997-98, with positive growth since. Total hours worked for the three subdivisions are also shown in figure 6.5. All three subdivisions show a similar pattern of decline between 1985-86 and 1997-98. Gas industry growth is more volatile due to the smaller size of its workforce.

6.5 Electricity, gas & water hours worked, (2004-05 = 100)
Graph: 6.5 Electricity, gas & water hours worked, (2004-05 = 100)

The fall in hours worked in the Electricity, gas & water industry between 1985-86 and 1997-98 was due to falls in employment across the three sub-industries (figure 6.6). However, since 1997-98 employment levels have been stable, and even increasing in recent years. There is evidence that some Electricity utilities may be conducting own-account capital work, and this is a possible reason for the increase in employment. However, own-account capital work will also be reflected in the output of the industry.

There are a number of possible reasons based on anecdotal evidence as to the recent increase in employment. For instance:

with the separation of functions in the Electricity industry, there would be the need to replicate head office staff
with the advent of the National Electricity Market there has been an increase in retail activity, which may require increases in employment through expanded marketing outlets
capital equipment in this industry has been rundown, and employment is required to perform maintenance and/or replacement work
for the Water industry, the utilities may require more labour to supply water to households and industries as a result of the latest drought.

Over the last 20 years there has been a decline in full-time employment while there has been strong growth in part-time employment. The main occupations in Electricity, gas & water are tradespersons, professionals, clerical and service workers. Across all occupations there were declines up to 2000-01. This was followed by a strong pickup in tradespersons and professionals from 2001-02.

6.6 Electricity, gas & water employment
Graph: 6.6 Electricity, gas & water employment