Looking Back on Structural Change in Australia: 2002–2012

Abstract

Structural change refers to a change in the structure of an economy. That structure is primarily defined in terms of the distribution of output across sectors (broad industry groupings), industries, states or regions. However, because production of goods and services requires primary inputs, the distribution of employment and, in some cases, investment is also of interest. The simplest way to represent the initial distribution is through the respective shares of sectors, industries or regions. Together, the shares add up to 100 per cent of the economy. Structural change implies that, over time, some shares become larger, others smaller. The larger the total proportion of (for example) output that ‘changes’ sectors from one period to another, the greater the magnitude of structural change in the sectoral dimension. Changing sectoral shares of, for example, employment may translate into changing shares of other variables, such as female employment or casual employees. However, the changing gender balance or casualisation of the workforce, per se, are not usually regarded as structural change.