health sector economic indicators report
TRANSCRIPT
HEALTH SECTOR ECONOMIC
INDICATORS REPORT
For: Mid North Coast Local Health District
Report prepared by:
April 2013
Page | 2
Table of Contents
Introduction 3
Executive Summary 4
Output 5
Value-Added 7
Workforce 9
Wages & Salaries 16
Impacts on Regional Economy 18
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HEALTH SECTOR ECONOMIC INDICATORS
Mid North Coast Local Health District
Introduction
This report has been undertaken in response to a request from the Mid North Coast Local Health
District. The Health Care and Social Assistance sector is now the largest employing sector in
Australia and in the Mid North Coast region. The sector also makes significant contributions to the
Gross Regional Product of the Mid North Coast – currently representing 11% of the regions GRP.
The report is intended to provide an update on the key economic and employment measures of the
Health Care and Social Assistance sector operating in the Mid North Coast Local Health District area.
Additional economic modelling is also included to increase the understanding of the economic
benefits – both direct and indirect – to the region from the large workforce employed by the Local
Health District.
The geographic region used for this report is defined by the Local Health District area including the
following Local Government Areas: Port Macquarie-Hastings; Kempsey; Nambucca; Bellingen and
Coffs Harbour.
Economic analysis in this report was undertaken using REMPLAN (Regional Economic Modelling and
Analysis System) and applies REMPLAN economic data for the defined region which includes data
sourced from the ABS 2006 and 2011 Census, National Input-Output Tables and ABS Gross State
Product (June 2010;2011;2012).
In this report, the ‘Health Care & Social Assistance Sector’ refers to the following two sub-sectors:
Health Care Services sector
o Hospitals (Except Psychiatric Hospitals); Psychiatric Hospitals; General Practice
Medical Services; Specialist Medical Services; Pathology and Diagnostic Imaging
Services; Dental Services; Optometry and Optical Dispensing; Physiotherapy
Services; Chiropractic and Osteopathic Services; Other Allied Health Services;
Ambulance Services and Other Health Care Services.
Residential Care & Social Assistance Services sector
o Aged Care Residential Services; Other Residential Care Services; Child Care Services
and Other Social Assistance Services.
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Executive Summary
Economic output by the Health Care & Social Assistance sector in the
Mid North Coast has grown by 35.7% to $1.225 billion between June
2011 and June 2012.
The Health Care & Social Assistance sector in the Mid North Coast
contributed 10.7% of the regions Gross Regional Product (June 2012).
The level of value-added (contribution to Gross Regional Product) by the
Health Care & Social Assistance sector grew by 20.6% between June
2011 and June 2012.
The Healthcare & Social Assistance sector is the largest employer in the
Mid North Coast region – representing 16.8% of total jobs.
Between 2006 and 2011, the size of the Healthcare & Social Assistance
sector in the Mid North Coast has grown at 5.2% per annum.
The Mid North Coast Local Health District employee base (Full Time
Equivalent) grew by 111 between June 2011 and June 2012 – it is
estimated that this increase supported the creation of an additional 47
jobs in the region and an increase in Gross Regional Product of $13.984
million.
A total of 63.2% of the Health workforce in the Mid North Coast are
aged between 35-54 years. This is favourable when compared to other
sectors, for example, Agriculture which is facing an ageing workforce.
The Local Health District total workforce on the Mid North Coast (2,817
full time equivalents) supports an additional 1,188 jobs in the regional
economy.
The economic output of the Health Care & Social Assistance sector on
the Mid North Coast represents 7.5% of the total output by all industry
sectors – now ranked the 4th largest industry by output.
For every $1 million paid to local suppliers for Hospital infrastructure
works – the flow-on benefits include: the creation of 6 jobs, increase in
Gross Regional Product of $804,000 and increase in output of $2.135m.
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OUTPUT
The economic output is a measure of the total gross revenues of the industry sector within the
defined region; it is also referred to as total sales or total income.
For the geographic region defining the Mid North Coast Local Health District, the output by the
Health Care & Social Assistance sector represents 7.5% of the total output of all industries in this
region or $1.225b. At a New South Wales level, the Health Care & Social Assistance sector
represents 4.3% of the total state output (June 2012). There has been significant growth in output
between June 2011 and June 2012 within the MNC LHD area – 35.7%.
In terms of Industry Ranking, the Health Care & Social Assistance sector has increased its importance
to the regional economy – increasing from the 7th and 8th largest industry by output in 2009/10 to
around the 4th largest industry by output in 2011/12. In addition to the increases in output by this
sector, there have also been reductions in both the Manufacturing and Retail Trade sectors
contributing to this change in industry ranking.
For the MNC Local Health District geographic region:
Output by the Health Care & Social Assistance Sector grew by 7.2% between 2009/10 and 2010/11
and by 35.7% between 2010/11 and 2011/12.
The highest growing Local Government Areas by output for the 2010/11 to 2011/12 financial year
were:
Kempsey, an increase of 41.3%
Coffs Harbour, an increase of 38.2%
Port Macquarie-Hastings, an increase of 37.1%
Output by the Health Care Services sub-sector grew by 5.2% between 2009/10 and 2010/11 and by
21.1% between 2010/11 and 2011/12.
The highest growing Local Government Areas by output for the 2010/11 to 2011/12 financial year
were:
Port Macquarie-Hastings, an increase of 29.6%
Coffs Harbour, an increase of 21.9%
Output by the Residential Care & Social Assistance Services sub-sector grew by 10.6% between
2009/10 and 2010/11 and by 59.2% between 2010/11 and 2011/12.
The highest growing Local Government Areas by output for the 2010/11 to 2011/12 financial year
were:
Kempsey, an increase of 90.5%
Coffs Harbour, an increase of 68.3%
Port Macquarie-Hastings, an increase of 49.3%
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OUTPUT
Output: Health Care & Social Assistance Sector
Local Government Area
2009/10 $m
% of Total Output
2010/11 $m
% of Total Output
2011/12 $m
% of Total Output
Bellingen 37.931 4.7% 40.624 4.7% 46.952 5.8% Coffs Harbour 329.139 5.9% 352.314 5.9% 486.859 8.2% Kempsey 101.707 5.1% 109.139 5.0% 154.242 7.0% Nambucca 62.935 5.7% 67.898 5.7% 80.189 6.9% Port Macquarie 310.7 5.4% 333.092 5.5% 456.796 7.4% MNC LHD region 842.412 5.5% 903.067 5.6% 1,225.038 7.5%
Industry Sector Ranking by Total Output
Local Government Area 2009/10 2010/11 2011/12
Bellingen 8 7 6 Coffs Harbour 7 7 4 Kempsey 7 7 4 Nambucca 8 7 4 Port Macquarie 7 7 5
Output: Health Care Services sub-sector
Local Government Area
2009/10 $m
% of Total Output
2010/11 $m
% of Total Output
2011/12 $m
% of Total Output
Bellingen 24.595 3.0% 25.876 3.0% 26.923 3.3% Coffs Harbour 217.106 3.9% 228.419 3.8% 278.340 4.7% Kempsey 62.069 3.1% 65.304 3.0% 70.725 3.2% Nambucca 31.616 2.9% 33.263 2.8% 33.915 2.9% Port Macquarie 195.364 3.4% 205.543 3.4% 266.310 4.3% MNC LHD region 530.75 3.5% 558.405 3.4% 676.213 4.1%
Output: Residential Care & Social Assistance Services sub-sector
Local Government Area
2009/10 $m
% of Total Output
2010/11 $m
% of Total Output
2011/12 $m
% of Total Output
Bellingen 13.336 1.7% 14.748 1.7% 20.029 2.5% Coffs Harbour 112.033 2.0% 123.895 2.1% 208.519 3.5% Kempsey 39.638 2.0% 43.835 2.0% 83.517 3.8% Nambucca 31.319 2.8% 34.635 2.9% 46.274 4.0% Port Macquarie 115.336 2.0% 127.549 2.1% 190.486 3.1% MNC LHD region 311.662 2.0% 344.662 2.1% 548.825 3.4%
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VALUE-ADDED
Value-Added data refers to the marginal economic value that is added by each industry sector in a
defined region. Value-added may be described as a measured representation of the value of
processing of a product or service from its sourced supply. Value-added is calculated by subtracting
local expenditure and expenditure on regional imports from the output generated by an industry
sector. Value-Added by industry sector is the major element in the calculation of Gross Regional
Product (GRP).
The contribution made to Gross Regional Product by the Health Care & Social Assistance sector
represented 10.7% of the regions total GRP in the year ending 30 June 2012, representing growth of
$142.454million (or 20.6%) from the previous year. This is higher than the New South Wales
economy, in which the Health Care & Social Assistance sector contributes 6.4% of Gross State
Product.
For the MNC Local Health District geographic region:
Value-Added by the Health Care & Social Assistance Sector declined by 0.1% between 2009/10 and
2010/11 and grew by 20.6% between 2010/11 and 2011/12.
The highest growing Local Government Areas by value-added for the 2010/11 to 2011/12 financial
year were:
Kempsey, an increase of 32.0%
Coffs Harbour, an increase of 27.3%
Port Macquarie-Hastings, an increase of 17.1%
Value-Added by the Health Care Services sub-sector declined by 0.3% between 2009/10 and
2010/11 and grew by 2.6% between 2010/11 and 2011/12.
The highest growing Local Government Areas by value-added for the 2010/11 to 2011/12 financial
year were:
Port Macquarie-Hastings, an increase of 6.3%
Coffs Harbour, an increase of 6.4%
Value-Added by the Residential Care & Social Assistance Services sub-sector was flat between
2009/10 and 2010/11 and grew by 49.5% between 2010/11 and 2011/12.
The highest growing Local Government Areas by value-added for the 2010/11 to 2011/12 financial
year were:
Kempsey, an increase of 88.2%
Coffs Harbour, an increase of 66.3%
Port Macquarie-Hastings, an increase of33.9%
Bellingen, an increase of 21.7%
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VALUE-ADDED
Value-Added: Health Care & Social Assistance Sector
Local Government Area
2009/10 $m
% of Total GRP
2010/11 $m
% of Total GRP
2011/12 $m
% of Total GRP
Bellingen 29.904 7.8% 32.226 7.9% 31.843 8.7% Coffs Harbour 279.393 9.8% 259.364 9.7% 330.257 11.4% Kempsey 86.667 8.6% 80.312 8.5% 106.005 10.3% Nambucca 49.921 9.4% 54.078 9.5% 55.336 10.4% Port Macquarie 245.152 8.7% 264.374 9.0% 309.458 10.3% MNC LHD region 691.037 9.4% 690.354 8.9% 832.899 10.7%
Industry Sector Ranking by Total Value-Added
Local Government Area 2009/10 2010/11 2011/12
Bellingen 4 4 4 Coffs Harbour 2 2 2 Kempsey 3 3 3 Nambucca 2 2 2 Port Macquarie 3 3 3
Value-Added: Health Care Services sub-sector
Local Government Area
2009/10 $m
% of Total GRP
2010/11 $m
% of Total GRP
2011/12 $m
% of Total GRP
Bellingen 19.104 5.0% 20.324 5.0% 17.354 4.7% Coffs Harbour 179.406 6.3% 168.637 6.3% 179.413 6.2% Kempsey 51.291 5.1% 48.212 5.1% 45.588 4.4% Nambucca 24.558 4.6% 26.126 4.6% 21.861 4.1% Port Macquarie 151.749 5.4% 161.439 5.5% 171.659 5.7% MNC LHD region 426.108 5.8% 424.738 5.5% 435.875 5.6%
Value-Added: Residential Care & Social Assistance Services sub-sector
Local Government Area
2009/10 $m
% of Total GRP
2010/11 $m
% of Total GRP
2011/12 $m
% of Total GRP
Bellingen 10.800 2.8% 11.902 2.9% 14.489 4.0% Coffs Harbour 99.987 3.5% 90.727 3.4% 150.844 5.2% Kempsey 35.376 3.5% 32.100 3.4% 60.417 5.9% Nambucca 25.363 4.8% 27.952 4.9% 33.475 6.3% Port Macquarie 93.403 3.3% 102.935 3.5% 137.799 4.6% MNC LHD region 264.929 3.6% 265.616 3.4% 397.024 5.1%
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WORKFORCE
There has been significant growth in the size of the Health Care & Social Assistance sector workforce
between 2006 and 2011. In 2006, the workforce totalled 8,679 and represented 14.1% of all jobs in
the Mid North Coast Local Health District geographic area. The 2011 Census results show that the
workforce is now at 10,928, representing 16.8% of the total regional workforce and a growth rate of
5.2% per annum (2006 to 2011).
The Health Care & Social Assistance sector is now the largest employing sector in the Mid North
Coast with 16.8% of the workforce – this compares with a New South Wales figure of 11.9%.
Although the Health Care Services sub-sector represents 53% of this workforce, the Residential Care
& Social Assistance Services sub-sector has been expanding at a higher rate (7.7% per annum growth
from 2006 to 2011 compared with 3.3%). The majority of the Health Care & Social Assistance sector
workforce is aged in the 45-54 year category (37% of the workforce) and a further 26.2% are in the
35-44 year age category.
The workforce breakdown can be divided into 4-digit industry classifications, as presented in the
following chart. The largest employing sub-sectors of the Health Care & Social Assistance sector are
Hospitals (24.5% of the total Health Care & Social Assistance sector) and Residential Care Services
(22.5%)
*The Mid North Coast is defined as per the Local Health District region (i.e. it excludes the Greater Taree LGA)
Note: ‘nfd’ refers to ‘not further defined’. There was insufficient information provided on the
Census to sub-categorise.
0 1000 2000 3000
Health Care and Social Assistance, nfd
Hospitals
Medical and Other Health Care Services, nfd
Medical Services
Pathology and Diagnostic Imaging Services
Allied Health Services
Other Health Care Services
Residential Care Services
Social Assistance Services, nfd
Child Care Services
Other Social Assistance Services
Mid North Coast* Health Care & Social Assistance Workforce Breakdown by sub-sector (2011 Census)
Page | 10
WORKFORCE
Jobs: Health Care & Social Assistance Sector
Local Government Area 2006
% of Total Jobs
2011
% of Total Jobs
% p.a. growth in jobs (’06 to ’11)
Bellingen 389 12.1% 418 12.9% 1.5% Coffs Harbour 3,366 14.3% 4,335 17.3% 5.8% Kempsey 1,053 13.0% 1,388 15.9% 6.4% Nambucca 669 14.7% 724 15.3% 1.6% Port Macquarie 3,202 14.3% 4,063 17.5% 5.4% MNC LHD region 8,679 14.1% 10,928 16.8% 5.2%
Industry Sector Ranking by Employment
Local Government Area 2006 2011
Bellingen 1 1 Coffs Harbour 2 1 Kempsey 2 1 Nambucca 2 1 Port Macquarie 2 1
Jobs: Health Care Services sub-sector
Local Government Area 2006
% of Total Jobs
2011
% of Total Jobs
% p.a. growth in jobs (’06 to ’11)
Bellingen 230 7.1% 230 7.1% 0.0% Coffs Harbour 2,031 8.6% 2,378 9.5% 3.4% Kempsey 581 7.2% 604 6.9% 0.8% Nambucca 296 6.5% 290 6.1% -0.4% Port Macquarie 1,827 8.2% 2,276 9.8% 4.9% MNC LHD region 4,965 8.0% 5,778 8.9% 3.3%
Jobs: Residential Care & Social Assistance Services sub-sector
Local Government Area 2006
% of Total Jobs
2011
% of Total Jobs
% p.a. growth in jobs (’06 to ’11)
Bellingen 159 4.9% 188 5.8% 3.6% Coffs Harbour 1,335 5.7% 1,957 7.8% 9.3% Kempsey 472 5.8% 784 9.0% 13.2% Nambucca 373 8.2% 434 9.2% 3.3% Port Macquarie 1,375 6.2% 1,787 7.7% 6.0% MNC LHD region 3,714 6.0% 5,150 7.9% 7.7%
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Health Care & Social Assistance Sector: Workforce Age & Education Profile broken down by Local Government Area
Workforce Breakdown by Age Workforce Breakdown by Level of Education Bellingen
Overall increase of 29 jobs in this sector from 2006 to 2011
Significant increases in the 55 years and older workforce demographic.
The 55-64 age group grew from 64 jobs to 111 from 2006 to 2011.
The 55-64 age group now represents 26.6% of the Bellingen Health Care & Social Assistance workforce, up from 16.5% in 2006.
Reductions have occurred in the number of workers aged 25-34 years (from 39 jobs in 2006 down to 17 jobs in 2011)
The largest Level of Education category is a Bachelor degree and this has increased from 90 in 2006 (or 23%) to 113 in 2011 (or 27%)
Significant increases in Certificate level qualifications – 19.2% of the Bellingen Health Care/Social Assistance workforce held Certificate level qualifications in 2006, this has grown to represent 26.5% in 2011.
Page | 12
Coffs Harbour
There have been increases across all age categories in the Coffs Harbour Health workforce between 2006 and 2011, with a total increase of 969 jobs in the 5 years to 2011.
The majority of the Coffs Harbour health workforce are in the 45-54 year age group (33.4% of the health workforce)
Significant increases have occurred in the 45-54 and 55-64 year age brackets between 2006 and 2011:
o 45-54 years increased from 1,252 workers to 1,447 o 55-64 years increased from 536 workers to 936
The workforce employed in the Coffs Harbour Health Care & Social Assistance sector has grown significantly from 2006 to 2011 – with an additional 969 jobs.
Bachelor degree and above (i.e. GradDip/GradCert/Postgrad) qualified employees represent the largest increase and largest share of the workforce: growing from 1042 to 1526 jobs between 2006 and 2011 and representing 35.2% of the Health sector workforce.
There has also been significant increase in Certificate level qualified workers – increasing from 787 to 1,115 between 2006 and 2011.
Page | 13
Kempsey
Between 2006 and 2011 there has been a growth of 335 jobs in the Health Care & Social Assistance sector in Kempsey.
The majority of the increase has been workers aged 55-64 years (increase of 161) and this age category now represents 22.7% of the workforce.
There has been significant growth in the number of workers with Postgraduate degree qualifications – increasing from 16 in 2006 to 45 in 2011.
Certificate level qualifications comprise the largest share of the workforce (31%) and has experienced the greatest growth between 2006 and 2011 (308 to 430 workers)
Page | 14
Nambucca
The Nambucca health industry workforce grew by 55 positions from 2006 to 2011.
The largest age bracket is the 45-54 year old, which comprises 41.6% of Nambucca workforce.
There has been significant shifts in the age profile of the Nambucca workforce with the under 45 year olds comprising 38.8% of the workforce in 2006 down to 27.9% in 2011.
Certificate qualified personnel comprise the largest share of the workforce, representing 31.3%. This has increased from 23.1% in 2006.
There has been a 27% increase in the number of Bachelor degree qualified workers from 2006 to 2011 (124 to 158 workers).
Page | 15
Port Macquarie
There has been significant increases in the Port Macquarie health sector workforce from 2006 to 2011 – an additional 861 people employed.
The largest increase has occurred in the 55-64 year age bracket – increasing from 532 to 871 jobs.
As at the 2011 Census, 33.4% of the Port Macquarie-Hastings health workforce where in the 45-54 year age bracket.
The level of Postgraduate degree qualified staff have nearly doubled between 2006 and 2011 (115 to 208 staff)
Significant increases have also occurred in the Bachelor degree and Certificate level qualified staff:
Bachelor degree staff increased from 720 to 984
Certificate level staff increased from 738 to 1134
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WAGES & SALARIES
The Health Care & Social Assistance sector remains the number one industry, in terms of total wages
and salaries, for each of the Local Government Areas reported on. This has been consistent across
all LGA’s for the 09/10, 10/11 and 11/12 periods.
The total wages and salaries paid to the Health Care & Social Assistance sector represents 16.7% of
the total wages paid across all industries within the MNC LHD geographic region, or $696.6m dollars
(financial year ending June 2012).
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WAGES & SALARIES
Wages: Health Care & Social Assistance Sector
Local Government Area
2009/10 $m
% of Total Wages
2010/11 $m
% of Total Wages
2011/12 $m
% of Total Wages
Bellingen 24.484 12.9% 26.712 13.4% 26.556 14.3% Coffs Harbour 212.148 14.4% 231.381 14.7% 275.481 17.2% Kempsey 65.97 13.3% 72.058 13.6% 89.739 16.0% Nambucca 41.381 15.5% 45.345 15.9% 47.057 16.9% Port Macquarie 201.051 13.7% 219.486 14.2% 257.743 16.6% MNC LHD region 545.034 14.0% 594.982 14.4% 696.576 16.7%
Industry Sector Ranking by Total Wages & Salaries Paid
Local Government Area 2009/10 2010/11 2011/12
Bellingen 1 1 1 Coffs Harbour 1 1 1 Kempsey 1 1 1 Nambucca 1 1 1 Port Macquarie 1 1 1
Wages: Health Care Services sub-sector
Local Government Area
2009/10 $m
% of Total Wages
2010/11 $m
% of Total Wages
2011/12 $m
% of Total Wages
Bellingen 15.163 8.0% 16.357 8.2% 13.607 7.3% Coffs Harbour 133.849 9.1% 144.388 9.2% 140.671 8.8% Kempsey 38.267 7.7% 41.280 7.8% 35.744 6.4% Nambucca 19.492 7.3% 21.026 7.4% 17.140 6.2% Port Macquarie 120.444 8.2% 129.928 8.4% 134.592 8.7% MNC LHD region 327.215 8.4% 352.979 8.5% 341.754 8.2%
Wages: Residential Care & Social Assistance Services sub-sector
Local Government Area
2009/10 $m
% of Total Wages
2010/11 $m
% of Total Wages
2011/12 $m
% of Total Wages
Bellingen 9.321 4.9% 10.355 5.2% 12.949 7.0% Coffs Harbour 78.299 5.3% 86.993 5.5% 134.810 8.4% Kempsey 27.703 5.6% 30.778 5.8% 53.995 9.6% Nambucca 21.889 8.2% 24.319 8.5% 29.917 10.7% Port Macquarie 80.607 5.5% 89.558 5.8% 123.151 7.9% MNC LHD 217.819 5.6% 242.003 5.8% 354.822 8.5%
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Impacts on Regional Economy
Scenario 1
MNC LHD Hospital workforce (FTE) increased by 111 from June 2011 to June 2012.
Figures supplied by the MNC LHD show that the total full time equivalent hospital based workforce
increased by 111 positions between June 2011 and June 2012.
From this direct expansion in the economy of 111 jobs in the Health Care Services sector, flow-on
industrial effects in terms of local purchases of goods and services are anticipated, and it is
estimated that these indirect impacts would result in the gain of a further 16 jobs. This represents a
Type 1 Employment multiplier of 1.144.
The increase in direct and indirect output and the corresponding creation of jobs in the economy are
expected to result in an increase in the wages and salaries paid to employees. A proportion of these
wages and salaries are typically spent on consumption and a proportion of this expenditure is
captured in the local economy. The consumption effects under this scenario are estimated to
further boost employment by 31 jobs.
Total employment, including all direct, industrial and consumption effects is estimated to increase
by up to 158 jobs. This represents a Type 2 Employment multiplier of 1.423.
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It is estimated that the additional 47 jobs resulting from the increase of 111 full time equivalents in
the MNC LHD hospital workforce would be broken down by industry sectors as follows:
Industry Sector Total Jobs
Agriculture, Forestry & Fishing 1 Manufacturing 3 Electricity, Gas, Water & Waste Services 1 Construction 1 Wholesale Trade 2 Retail Trade 10 Accommodation & Food Services 5 Transport, Postal & Warehousing 2 Information Media & Telecommunications 1 Financial & Insurance Services 1 Rental, Hiring & Real Estate Services 1 Professional, Scientific & Technical Services 3 Administrative & Support Services 2 Public Administration & Safety 1 Education & Training 3 Health Care & Social Assistance 5 Arts & Recreation Services 1 Other Services 4
The increase in the hospital workforce of 111 FTE’s between June 2011 and 2012 within the Mid
North Coast Local Health District is also estimated to have increased the Gross Regional Product for
the Mid North Coast by $13.984 million.
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Scenario 2
What is the economic contribution from Public Hospital staff to each local region?
Figures supplied by the MNC LHD on the size of the full-time equivalent hospital based staff were
modelled using REMPLAN to determine the additional jobs in the local economy created by the
hospital workforce.
For the Mid North Coast Local Health District geographic region, there is an employment Type 2
multiplier of 1.422. For each additional job in the Hospital sector, the total employment effect (after
industrial and consumption effects) is 1.422 times. There were 2,457 MNC LHD hospital employees
as at 30 June 2012 and this workforce creates an additional 1,036 jobs in the regional economy. The
Coffs Harbour local economy enjoys the highest Health sector Type 2 Multiplier (1.437) – and
therefore for the 1,094 hospital employees, there are an additional 478 jobs created in the local
economy.
Local Government Area FTE Hospital Workforce (as at 30
June 2012)1
Additional jobs supported by the hospital workforce2
Employment Type 2 Multiplier
Bellingen 99 30 1.303
Coffs Harbour 1,094 478 1.437
Kempsey 261 93 1.356
Nambucca 112 30 1.348
Port Macquarie 891 366 1.411
Mid North Coast 2,457 1,036 1.422
1: Total Full Time Equivalent MNC LHD Hospital workforce as at 30 June 2012
2: REMPLAN modelling outcome of the number of additional jobs supported in other sectors from
the Hospital workforce. That is, the total industrial and consumption employment effects from the
Hospital workforce.
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Scenario 3
What is the economic contribution from the Mid North Coast Local Health District
workforce to each local region?
Figures supplied by the MNC LHD on the size of the full-time equivalent hospital and area office
based staff were modelled using REMPLAN to determine the additional jobs in the local economy
created by the hospital workforce.
For the Mid North Coast Local Health District geographic region, there is an employment Type 2
multiplier of 1.422. For each additional job in the Health Care Services sector, the total employment
effect (after industrial and consumption effects) is 1.422 times. There were 2,817 MNC LHD hospital
and area office employees as at 30 June 2012 and this workforce creates an additional 1,188 jobs in
the regional economy. The Coffs Harbour local economy enjoys the highest Health sector Type 2
Multiplier (1.437) – and therefore for the 1,261 hospital and health district employees, there are an
additional 551 jobs created in the local economy.
Local Government Area FTE Hospital Workforce (as at 30 June 2012)1
Additional jobs supported by the
hospital workforce2
Employment Type 2 Multiplier
Bellingen 99 30 1.303
Coffs Harbour 1,261 551 1.437
Kempsey 276 99 1.356
Nambucca 113 39 1.348
Port Macquarie 1,060 436 1.411
Mid North Coast 2,817 1,188 1.422
1: Total Full Time Equivalent MNC LHD Hospital and Area Office workforce as at 30 June 2012
2: REMPLAN modelling outcome of the number of additional jobs supported in other sectors from
the Hospital workforce. That is, the total industrial and consumption employment effects from the
Hospital workforce.
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Scenario 4
What are the economic benefits to the region of major upgrades to Hospital sites in the
Mid North Coast?
For each $1 million of the hospital upgrade investments which are paid to suppliers (within the
Construction Industry) in the Mid North Coast region, the following economic benefits are estimated
based on REMPLAN modelling. This modelling only refers to the construction phase of the project
and for funds which are directed to suppliers in the Mid North Coast region.
Impact on Output
From a direct increase in output of $1.0 million it is estimated that the demand for intermediate
goods and services would rise by $0.813 million. This represents a Type 1 Output multiplier of 1.813.
These industrial effects include multiple rounds of flow-on effects, as servicing sectors increase their
own output and demand for local goods and services in response to the direct change to the
economy.
The increases in direct and indirect output would typically correspond to the creation of jobs in the
economy. Corresponding to this change in employment would be an increase in the total of wages
and salaries paid to employees. A proportion of these wages and salaries are typically spent on
consumption and a proportion of this expenditure is captured in the local economy. The
consumption effects under this scenario are estimated at $0.322 million.
Total output, including all direct, industrial and consumption effects is estimated to increase by up to
$2.135 million. This represents a Type 2 Output multiplier of 2.135.
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Impact on Value-Added
From a direct increase in output of $1 million the corresponding increase in direct value-added is
estimated at $0.308 million. From this direct expansion in the economy, flow-on industrial effects in
terms of local purchases of goods and services are anticipated, and it is estimated that these indirect
impacts would result in a further increase to value-added of $0.318 million. This represents a Type 1
Value-added multiplier of 2.032.
The increase in direct and indirect output and the corresponding boost to jobs in the economy are
expected to result in an increase in the wages and salaries paid to employees. A proportion of these
wages and salaries are typically spent on consumption and a proportion of this expenditure is
capture in the local economy. The consumption effects under this scenario are expected to further
boost value-added by $0.177 million.
Total value-added, including all direct, industrial and consumption effects is estimated to increase by
up to $0.804 million. This represents a Type 2 Value-added multiplier of 2.606.
Impact on Employment
From a direct increase in output of $1 million the corresponding creation of direct jobs is estimated
at 2 jobs. From this direct expansion in the economy, flow-on industrial effects in terms of local
purchases of goods and services are anticipated, and it is estimated that these indirect impacts
would result in the gain of a further 3 jobs. This represents a Type 1 Employment multiplier of
2.500.
The increase in direct and indirect output and the corresponding creation of jobs in the economy are
expected to result in an increase in the wages and salaries paid to employees. A proportion of these
wages and salaries are typically spent on consumption and a proportion of this expenditure is
captured in the local economy. The consumption effects under this scenario are estimated to
further boost employment by 1 job.
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Total employment, including all direct, industrial and consumption effects is estimated to increase
by up to 6 jobs. This represents a Type 2 Employment multiplier of 3.000.
Summary of Impacts
Summary of impacts to regional economy from each $1million paid to regional Construction industry
suppliers.
Impact Summary
Direct Effect
Industrial Effect
Consumption Effect
Total Effect Type 1 Multiplier
Type 2 Multiplier
Output ($m) $1.000 $0.813 $0.322 $2.135 1.813 2.135 Employment (Jobs)
2 3 1 6 2.500 3.000
Value-added ($m)
$0.308 $0.318 $0.177 $0.804 2.032 2.606