A number of ED practitioners have requested that I post definitions of the Pracsys employment quality categories on our blog. In understanding these it is important to note the different characteristics of population-driven employment resulting from economic growth versus strategic employment resulting from economic development.
Export oriented (EO) activity is directly involved in the creation of goods and services that are exported outside of the greater region (intrastate, interstate or internationally).
Knowledge intensive producer services (KIPS) are high-productivity business-to-business activity that directly facilitate the export oriented activity (i.e. professional services, logistics, suppliers, etc).
Together EO and KIPS activity is considered strategic in that it is directly involved in deriving income from external sources in exchange for goods and services (i.e. It increases the overall wealth of an economy). This segment typically employs a higher-skilled and higher income workforce that is likely to generate significant flow-on impacts through business to business and consumer expenditure within local economies.
Consumer services (CS) are defined as lower productivity activities oriented towards servicing a consumer population. Examples include retail, restaurants and hospitality, population-oriented civic services, etc.
Knowledge intensive consumer services (KICS) provide high-productivity activity oriented towards a consumer population. Education and healthcare activity oriented towards servicing a local population fall into this category.
Producer services (PS) is characterised by lower productivity activity that is oriented towards business customers. Haulage of raw materials and administrative support fall into this category
All CS, PS and KICS is oriented towards servicing a given population. Whilst this activity requires activation to capture expenditure (e.g. creation of high amenity cafe and shopping strip to encourage increased visitation), activity will ultimately depend on the number and characteristics of residents, workers and visitors within an area.
Economic development results from strategic industry drawing in greater income from external markets through the export of goods and/or services.
Economic growth results from changes in the quantity or characteristics of the population being serviced by population-driven activity
Figure 1: Hierarchy of Employment Activity
Source: Pracsys (2008)
