The FINANCIAL — In 2015, industry was still the largest economic activity in the European Union (EU) in terms of output generated.
Accounting for 19.3% of EU total gross value added (GVA), industry was immediately ahead of the economic activities “Public administration, defence, education, human health and social work activities” (19.1%) and “Wholesale and retail trade, transport, accommodation and food services” (18.9%). “Real estate activities” (11.2%) and “Professional, scientific and technical activities” (10.9%) had also a significant share of EU total gross value added.
The respective shares of these economic activities have however followed contrasting trends over the last twenty years. The percentage of gross value added generated increased in “Professional, scientific and technical activities” (from 8.5% in 1995 to 10.9% in 2015, or +2.4 percentage points – pp), “Public administration, defence, education, human health and social work activities” (+1.1 pp), “Real estate activities” (+1.0 pp). It remained nearly stable at around 19% in “Wholesale and retail trade, transport, accommodation and food services”. In contrast, the share of industry notably decreased (from 23.3% in 1995 to 19.3% in 2015, or -4.0 pp) as did that of agriculture, forestry and fishing (by -1.1 pp).
Similar trends can be observed for the shares of these economic activities in total employment. Almost half of EU employment was concentrated in 2015 in two economic activities: “Wholesale and retail trade, transport, accommodation and food services” (24.6%) and “Public administration, defence, education, human health and social work activities” (23.6%), both activities having seen their respective weight in total employment slightly increase over the last twenty years. In contrast, the share of industry in EU employment fell from 20.9% in 1995 to 15.4% in 2015.
Share of industry in total GVA highest in Ireland and the Czech Republic
In twelve EU Member States, “Wholesale and retail trade, transport, accommodation and food services” was in 2015 the first economic activity in terms of gross value added generated, with the highest proportions being recorded in Lithuania (31.4% of total GVA), Cyprus and Latvia (both 25.2%), Poland (25.0%), Portugal (24.7%) and Greece (24.4%). In nine Member States, “Industry” came first, accounting for around a quarter of total GVA. This was particularly the case in Ireland (39.1%) and the Czech Republic (32.1%), followed by Hungary (27.8%), Slovenia (27.3%) and Slovakia (27.0%). “Public administration, defence, education, human health and social work activities” was the main economic activity in terms of GVA in the three EU Nordic Member States – Sweden (23.8%), Denmark (23.1%) and Finland (21.8%) – as well as France (23.0%), Belgium (22.5%), the Netherlands (21.8%) and the United Kingdom (18.5%, equal with “Wholesale and retail trade, transport, accommodation and food services”). Luxembourg stood out, with “Financial and insurance activities” representing the main economic activity, generating 27.5% of total gross value added.
Industry’s GVA declined the most in Malta, Latvia and the United Kingdom
A twenty-year analysis shows that significant changes have occurred mainly in three activities: industry, public administration and agriculture. Compared with 1995, the share of industry in total gross value added decreased by 2015 in a large majority of Member States, with the largest falls being registered in Malta (from 23.1% in 1995 to 11.4% in 2015, or -11.7 pp), Latvia and the United Kingdom (both -8.9 pp), Finland (-8.2 pp), Luxembourg (-7.8 pp) and Belgium (-7.0 pp). The share of industry only increased between 1995 and 2015 in Ireland (from 26.2% to 39.1%, or +12.9 pp – see country note), followed at a distance by Hungary (+2.4 pp), Bulgaria (+2.3 pp) and the Czech Republic (+0.7 pp), while it remained nearly stable in Germany.
The share of “Public administration, defence, education, human health and social work activities” has increased in most Member States over the last twenty years, notably in Romania (from 6.1% to 11.7%, or +5.6 pp), Greece (+4.5 pp) and Bulgaria (+4.2 pp). It only decreased in Ireland (-4.9 pp), the three EU Baltic Member States – Estonia (-3.8 pp), Latvia (-2.5 pp) and Lithuania (-1.8 pp) – as well as Hungary (-1.4 pp), Slovakia (-0.7 pp) and Austria (-0.5 pp).
As for “Agriculture, forestry and fishing”, its share in the economy decreased between 1995 and 2015 in every EU Member State, with the largest falls being registered in Romania (from 19.2% to 4.8%, or – 14.4 pp), Bulgaria (-8.6 pp), Lithuania (-7.5 pp), Latvia (-5.7 pp) and Ireland (-5.4 pp).
At EU level, the share of both industry (-4.0 pp) and agriculture (-1.1 pp) in total GVA decreased between 1995 and 2015, while that of public administration increased slightly (+1.1 pp).
Industry, first employer only in the Czech Republic, Poland and Slovenia
In the majority of Member States, “Wholesale and retail trade, transport, accommodation and food services” was in 2015 the first employing economic activity, with the highest percentages being observed in Greece (32.4% of total employment), Cyprus (32.0%), Spain (30.2%) and Ireland (28.4%). In seven Member States, “Public administration, defence, education, human health and social work activities” came first, notably in Sweden (33.5%), Belgium (30.6%), Denmark (30.5%) and France (29.7%). Industry was the main employer in the Czech Republic (28.9%), Poland (22.9%) and Slovenia (22.5%), while it remained the agricultural activity in Romania (26.6%). At EU level, nearly 1 in every 4 persons (24.6%) was employed in “Wholesale and retail trade, transport, accommodation and food services” as well as in “Public administration, defence, education, human health and social work activities” (23.6%), while industry accounted for 15.4% of employment and “Professional, scientific and technical activities” for 12.5%.
Share in employment of both industry and agriculture down in all Member States
For employment also significant changes over the last twenty years mainly took place in industry, public administration and agriculture. Compared with 1995, the share of industry in total employment decreased by 2015 in all EU Member States, with the largest falls being registered in Malta (from 27.5% in 1995 to 12.6% in 2015, or -14.9 pp), Slovenia (-10.2 pp), Luxembourg and Estonia (both -7.6 pp) as well as the United Kingdom (-7.5 pp).
The share of “Public administration, defence, education, human health and social work activities” has increased in most Member States over the last twenty years, and most strongly in Romania (from 7.3% to 13.6%, or +6.3 pp), Slovenia (+5.1 pp), Luxembourg (+4.2 pp), Greece (+4.1 pp) and Belgium (+4.0 pp). It decreased in Bulgaria (- 3.0 pp), Latvia (-2.2 pp), Slovakia (-2.1 pp), Sweden (-1.4 pp), Italy and Lithuania (both by -1.2 pp) and the Czech Republic (-0.3 pp).
As for “Agriculture, forestry and fishing”, its share in employment decreased between 1995 and 2015 in every EU Member State, with the largest fall being registered in Romania (from 42.4% to 26.6%, or -15.8 pp), followed by Lithuania (-9.5 pp) and Hungary (-8.1 pp).
At EU level, the share of both industry (-5.5 pp) and agriculture (-3.9 pp) in total employment decreased between 1995 and 2015, while that of public administration increased by 1.6 pp.
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