How the professional services sector in Australia contributes to the economy (migration, employment and productivity)

In the pre-Covid-19 economy, Australia’s services sector has expanded by an annual 3.6 per cent since 1992, well above the goods sector’s annual average of 2.1 per cent. ICT, professional, scientific and technical services and financial and insurance have continued to see solid annual growth rates of above 4.5 per cent, reflecting Australia’s skills base in technology and knowledge-intensive sectors.

Australia is renowned for its abundance of resources, capability and talent. It is globally successful in the energy and resources, agribusiness, education, tourism and financial services industries. Research and development skills and investments are continuously being applied to stay at the forefront of these industries. Simultaneously, state governments are increasingly invested in developing and commercialising new disruptive technologies in a range of critical sectors for future growth.

Professional services including financial and business management services are among Australia’s globally significant industries, with large, expanding sophisticated financial markets including the world’s sixth-largest pool of managed fund assets.

Australia has deep and liquid financial markets particularly with the managed funds sector underpinned by a mandated retirement savings scheme (superannuation) that has resulted in the fourth largest pension pool in the world. Australia’s mature financial services sector has estimated assets of around A$8.5 trillion (as of June 2018). On average, the sector has grown 9.4 per cent a year over the past two decades (compared to 5.9 per cent which is the average nominal GDP growth rate). The strength of the financial services industry means it is Australia’s largest contributor to gross value added, one of its highest growth sectors and a significant source of capital.

Lured by its sheer size and future potential, as foreign investments in this space continue to gain traction, emerging financial technologies (blockchain, data science, and other deep tech innovation) are expected to attract migration from highly skilled FinTech individuals, as well as new venture model proposals from highly skilled entrepreneurs.

For a detailed, personalised consultation on skilled or business migration for professional services, please contact Sellanes Clark.

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