Why has the service sector become Tasmania’s largest source of employment?

The service sector has become Tasmania’s largest source of employment primarily due to a steady, long-term decline in job opportunities within the primary (agriculture, forestry, fishing, and mining) and secondary (manufacturing and processing) sectors, a trend that has persisted since the 1970s.1

As these traditional industries contracted, the tertiary sector emerged as the state's dominant employer, now providing nearly three-fourths of all jobs. This growth is driven by several key areas:21

• Trade: Wholesale and retail activities constitute the largest portion of the service sector, employing approximately one-fifth of the Tasmanian workforce.2
• Tourism: Leveraging the state’s natural environment, tourism has undergone rapid expansion since the late 20th century, now accounting for about one-tenth of employment.2
• Health Services: This sector also accounts for roughly one-tenth of the state's total employment.2

The state government has been active in promoting both trade and tourism to foster economic stability in the face of challenges such as a small resource base and restricted local markets.1