Information and communication service statistics - NACE Rev. 2
- Data from August 2016. Most recent data: Further Eurostat information, Main tables and Database. Planned article update: October 2017
This article presents an overview of statistics for the European Union’s (EU) information and communication services sector, as covered by NACE Rev. 2 Section J. It belongs to a set of statistical articles on 'Business economy by sector'
- 1 Main statistical findings
- 2 Data sources and availability
- 3 Context
- 4 See also
- 5 Further Eurostat information
- 6 External links
Main statistical findings
The EU-28’s information and communication services sector (Section J) numbered some 1017 thousand enterprises in 2013, employing 6.1 million persons and generating EUR 518.7 billion of value added. This sector’s contribution to the non-financial business economy (Sections B to J and L to N and Division 95) was 4.5 % of the enterprise population, 4.6 % of the workforce, and 8.3 % of value added.
The apparent labour productivity of the EU-28’s information and communication services sector in 2013 was EUR 85.0 thousand per person employed, which was almost double the non-financial business economy average of EUR 46.9 thousand per person employed. Alongside this relatively high apparent labour productivity — fourth highest among the NACE sections that form the non-financial business economy — average personnel costs within the information and communication services sector were EUR 51.9 thousand per employee, which was also well above the average for the non-financial business economy (EUR 32.7 thousand per employee) and the second highest among the NACE sections.
The wage-adjusted labour productivity ratio shows that value added per person employed was equivalent to 165.0 % of average personnel costs per employee across the EU-28 in 2013. This ratio was substantially higher than the non-financial business economy average (143.1 %). Equally the EU-28’s information and communication services sector recorded a gross operating rate of 20.0 % in 2013, just over double the 9.5 % average for the whole of the non-financial business economy and lower only than the rates recorded for real estate activities (43.6 %) and for mining and quarrying (21.7 %).
Two of the six subsectors (at the division level) dominated the information and communication services sector in the EU-28, namely computer programming and consultancy (Division 62) and telecommunications (Division 61). These two subsectors generated close to three quarters (71.1 %) of sectorial value added and employed two thirds (66.1 %) of the workforce in 2013. In 2013, the third largest subsector was publishing activities (Division 58), which accounted for 15.1 % of the information and communication services workforce and contributed 11.6 % to sectorial value added.
The telecommunications subsector and the programming and broadcasting activities subsector (Division 60) were the only two of the six NACE divisions within the information and communication services sector to report that their shares of sectorial employment were lower than their value added shares, suggesting that these two activities had relatively high apparent labour productivity.
Indeed, the high apparent labour productivity figure for the whole of the EU-28’s information and communication services sector in 2013 was pulled upwards by the values for the telecommunications subsector (EUR 157.0 thousand per person employed) and the programming and broadcasting activities subsector where apparent labour productivity was EUR 105.0 thousand per person employed. Among the four other subsectors within the information and communication services sector, apparent labour productivity was below the sectorial average of EUR 85.0 thousand per person employed, but above the non-financial business economy average of EUR 46.86 thousand per person employed. Equally, all of the subsectors recorded average personnel costs per employee above the non-financial business economy average, ranging from EUR 42.4 thousand for motion picture, video and television programme production, sound recording and music publishing activities (Division 59) to EUR 55.0 thousand for computer programming and consultancy (Division 62). Due to their very high apparent labour productivity the telecommunications and the programming and broadcasting activities subsectors recorded the highest levels of wage-adjusted labour productivity among the six subsectors within the information and communication services sector. This ratio for telecommunications was 290.0 %, which was the fourth highest wage-adjusted labour productivity ratio at the NACE division level within the non-financial business economy in 2013. For the programming and broadcasting activities subsector the wage adjusted labour productivity ratio was 193.0 %. The lowest ratios were recorded for computer programming and consultancy (128.0 %) and for information service activities (Division 63), at 142.0 %.
The telecommunications subsector also recorded the highest gross operating rate (27.7 %) among the NACE divisions that compose the EU-28’s information and communication services sector; it was followed (again) in the ranking by programming and broadcasting activities (20.3 %).
The United Kingdom made the largest contribution among the EU Member States to sectorial value added and employment within the information and communication services sector in 2013, accounting for a 21.9 % share of EU-28 value added and an 18.4 % share of the information and communication services workforce. Collectively the five largest Member States accounted for 72.3 % of the EU-28’s value added in the information and communication services sector, and accounted for a double-digit share of non-financial business economy value added in Luxembourg (13.3 %) and in the United Kingdom (10.8 %), while its contribution was just 5.3 % in Austria — see figure 2. The relative weight of the information and communication services sector was also relatively low in Switzerland and Norway, as it contributed 6.8 % and 5.6 % to the value added that was generated within the non-financial business economies of these two countries in 2013.
1.1 million persons were employed within the information and communication services sector in the United Kingdom and in Germany in 2013. The same two countries also recorded the highest levels of value added within the information and communication services sector in 2013 (EUR 113.5 billion and EUR 107.6 billion respectively). In the largest subsector, namely computer programming and consultancy, Germany generated the largest share of EU-28 value added (10.0 % in 2013); the United Kingdom made the highest contribution to EU-28 value added for the telecommunications subsector and for the relatively small subsector of information service activities.
In relative terms, the most specialised EU Member State within the information and communication services sector was Luxembourg (where this sector contributed 13.3 % of non-financial business economy value added in 2013). There is no value added data available for Luxembourg for three of the six subsectors that form information and communication services — however, the data that are available suggest that Luxembourg was highly specialised in at least one of these three activities (telecommunications; computer programming and consultancy; or publishing activities).
Luxembourg and Belgium stood out as having the highest apparent labour productivity among the EU Member States for the information and communication services sector in 2013. Malta reported the highest wage-adjusted labour productivity ratio, at 236.1 % followed by Luxembourg at 220.9 %. None of the Member States recorded a wage-adjusted labour productivity ratio that was below parity (100 %).
The highest gross operating rate for the information and communication services sector in 2013 was recorded for Malta (28.3 %); while rates of more than 20.0 % were recorded in 15 out of the 26 remaining EU Member States for which data are available.
Size class analysis
Large enterprises (employing 250 or more persons) dominated the information and communication services sector in the EU-28. In 2013, they reported a 57.8 % share of sectorial value added (equal to EUR 300.0 billion), while employing 41.5 % of the sectorial workforce (some 2.5 million persons). Across all of the NACE sections that form the non-financial business economy, the information and communication services sector recorded the third highest contribution from large enterprises to its sectorial value added — behind the mining and quarrying and network energy supply sectors (Sections B and D).
The apparent labour productivity of large enterprises within the EU-28’s information and communication services sector was, at EUR 139.4 thousand per person employed, considerably higher than for the other enterprise size classes and more than double the non-financial business economy average for large enterprises (EUR 46.8 thousand per person employed). There appeared to be increasing returns to scale within the information and communication services sector:
There were seven EU Member States reporting that the contribution of large enterprises to value added within the information and communication services sector was less than 50.0 % in 2013; they were Estonia, Latvia, Lithuania,, Hungary, Austria, Slovenia and Sweden (where the lowest share was registered at 40.0 %); the contribution of large enterprises to the value added of the Norwegian information and communication services sector was just above the lowest share recorded in the EU Member States, as it stood at 42.8 %. At the other end of the scale, large enterprises in Spain, Poland, Italy, Romania, Greece and Portugal accounted for between 67.8 % and 62.0 % of the value added generated within the information and communication services sector.
In value added terms, large enterprises accounted for the overwhelming majority of activity within the EU- 28’s telecommunications subsector and the programming and broadcasting activities subsector, some 86.8 % and 81.8 % of the total. Although they did not account for an absolute majority of the EU-28 value added generated in the remaining subsectors, the share of large enterprises was between 40.0 % and 43.0 % in two out of the four remaining activities in 2013 (42.9 % in the computer programming and consultancy subsector, and 41.5 % in the information service activities subsector); large enterprises provided 50.0 % of the value added generated in the publishing activities subsector in 2013. There was one exception to this pattern, namely, the motion picture and sound recording activities subsector, where large enterprises provided just 14.5 % of the value added, compared with a share of 32.1 % for micro enterprises.
In employment terms, the dominance of large enterprises was somewhat less apparent, but remained prevalent, especially for the telecommunications subsector and the programming and broadcasting activities subsector, where large enterprises accounted for 76.9 % and 65.6 % (data of 2012) of the workforce across the EU-28. Large enterprises also provided work to the highest proportion of the workforce within the publishing activities subsector and the computer programming and consultancy subsector. By contrast, micro enterprises provided work to the highest proportion of the workforce (37.6 %) within the EU-28’s motion picture and sound recording activities subsector and for information service activities (36.0 %).
The French capital city region of the Île de France recorded the highest number of persons employed, across NUTS level 2 regions within the EU-28, for the information and communication services sector in 2013. With 569.3 thousand persons, the Île de France accounted for almost 10 % of the total number of persons employed in the EU-28 in this sector. The second highest number of persons employed was recorded for the Spanish capital city region of the Comunidad de Madrid where 185.1 thousand persons worked in the information and communication services sector. Inner London - the capital city region of the United Kingdom, the Italian region of Lombardia and Köln completed the ranking of the top five regions in relation to employment levels within the information and communication services sector.
The ranking of the largest regions (in employment terms) suggests that the EU-28’s information and communication services sector was particularly developed in and around capital city regions and in regions that contained other large cities. Aside from Paris, Madrid, London and Rome, there was a high level of employment within the information and communication services sector in the capital city regions of Mazowieckie (Poland), Stockholm (Sweden), Közép-Magyarország (Hungary), Bucuresti - Ilfov (Romania) and Noord-Holland (the Netherlands) — each of which featured among the top 20 regions. The remaining regions within the top 20 included the German regions of Oberbayern, Berlin, Köln, Darmstadt, Düsseldorf and Stuttgart; Berkshire, Buckinghamshire and Oxfordshire and Outer London in the south-east of the United Kingdom; Cataluña in Spain; Lombardia in Italy, and Hovedstaden in Denmark. These top 20 regions together accounted for 42.2 % of the EU-28’s information and communication services workforce.
The relative importance of the information and communication services sector can be analysed by comparing the employment of this sector with the non-financial business economy workforce. Among the 193NUTS level 2 regions for which 2013 data are available, the median share of the information and communication services sector in the non-financial business economy workforce was 2.7 %. Employment within the information and communication services sector was concentrated in relatively few regions. In Inner London, the information and communication services sector accounted for 13.8 % of the non-financial business economy workforce. There were other regions, at NUTS level 2, which reported the information and communication services sector accounting for above 10 % of the non-financial business economy workforce: Berkshire, Buckinghamshire and Oxfordshire (in the United Kingdom), Stockholm (Sweden), Hovedstaden (the capital city region of Denmark), Utrecht (in the Netherlands), region Ile de France and Helsinki region. There were 16 NUTS level 2 regions in the EU-28 which reported their information and communication services sector accounting for between 6.0 % and 10.0 % of their non-financial business economy workforce.
At the other end of the range, there was one NUTS level 2 region n Bulgaria where the information and communication services sector accounted for less than 1.0 % of the non-financial business economy workforce.
Data sources and availability
Information and communication services concern the production and distribution of information and cultural products, the provision of the means to transmit or distribute these products as well as data or communications, information technology activities, and the processing of data and other information service activities.
The sector is composed of six separate NACE divisions and includes:
- publishing activities (Division 58);
- motion picture and sound recording activities (Division 59);
- programming and broadcasting activities (Division 60);
- wired, wireless and satellite telecommunications activities (Division 61);
- computer programming and consultancy activities (Division 62);
- information service activities such as data processing, hosting, web portals, news agencies, information search (Division 63).
Note that this article does not cover printing or the mass reproduction of recorded media, both of which are considered as part of the manufacturing sector (Section C). The activities of call centres are included within the administrative and support services sector (Section M).
Publishing includes the acquisition of copyrights to content (information products) and making this content available to the general public by engaging in or arranging for the reproduction and distribution of this content in various forms; all types of media are included. Different types of content are considered, with the publishing activity as presented in this article including content such as books, newspapers, magazines and software, while the production of audio and visual content is included within motion picture and sound recording activities.
Programming and broadcasting activities cover the production and distribution of TV programming and involves different stages: production of individual items (such as films or television series); the creation of a complete television channel programme (including live news programming) and broadcasting; distribution of complete television programmes by third parties without any alteration of the content, for example through broadcasting, satellite or cable systems.
The analysis presented in this article is based on the main dataset for structural business statistics (SBS), size class data and regional data, all of which are published annually.
The main series provides information for each EU Member State as well as a number of non-member countries at a detailed level according to the activity classification NACE. Data are available for a wide range of variables.
In structural business statistics, size classes are generally defined by the number of persons employed. A limited set of the standard structural business statistics variables (for example, the number of enterprises, turnover, persons employed and value added) are analysed by size class, mostly down to the three-digit (group) level of NACE. The main size classes used in this article for presenting the results are:
- small and medium-sized enterprises (SMEs): with 1 to 249 persons employed, further divided into;
- micro enterprises: with less than 10 persons employed;
- small enterprises: with 10 to 49 persons employed;
- medium-sized enterprises: with 50 to 249 persons employed;
- large enterprises: with 250 or more persons employed.
Regional SBS data are available at NUTS levels 1 and 2 for the EU Member States and Norway, mostly down to the two-digit (division) level of NACE. Regional data for Croatia was not available for 2012. The main variable analysed in this article is the number of persons employed. The type of statistical unit used for regional SBS data is normally the local unit, which is an enterprise or part of an enterprise situated in a geographically identified place. Local units are classified into sectors (by NACE) normally according to their own main activity, but in some EU Member States the activity code is assigned on the basis of the principal activity of the enterprise to which the local unit belongs. The main SBS data series are presented at national level only, and for this national data the statistical unit is the enterprise. It is possible for the principal activity of a local unit to differ from that of the enterprise to which it belongs. Hence, national SBS data from the main series are not necessarily directly comparable with national aggregates compiled from regional SBS.
Technological and regulatory advancements have made it possible for broadcasting to be opened up to a wider range of content and services to users than those traditionally distributed by government-licensed organisations that used to be solely responsible for the broadcasting of a small number of radio and television channels according to a fixed schedule. Using a range of modern technologies, broadcasting can nowadays be undertaken with far lower entry barriers, providing a wider range of distribution media, content and services to users.
Information and communication technologies (ICT) affect people’s everyday lives in many ways and EU policies in this area range from regulating entire sectors to trying to protect an individual’s privacy. The increased availability of broadband services and of wireless devices is transforming economic and societal behaviour. Widespread access to the internet via rapid broadband connections is seen as essential for the development of advanced services on the internet.
In May 2010, the European Commission adopted a Communication concerning a Digital Agenda for Europe, a strategy for a flourishing digital economy by 2020, replacing the i2010 initiative; this is one of seven flagship initiatives under the Europe 2020 strategy for smart, sustainable and inclusive growth. It outlines policies and actions aimed at maximising the benefit of the digital era to all sections of society and the economy. The agenda focuses on seven priority areas for action: creating a digital single market, greater interoperability, boosting internet trust and security, providing much faster internet access, encouraging investment in research and development, enhancing digital literacy skills and inclusion, and applying ICT to address challenges facing society like climate change and the ageing population.
The Digital Agenda for Europe defines roaming as a key performance target for attaining the Digital Single Market, with the stated aim of making the difference between roaming and national tariffs approach zero by 2015. After having conducted a thorough review, the European Commission found that the roaming market is not yet competitive enough and despite the fact that the cost of using mobile phones or other devices when abroad in the EU has continuously fallen, most operators still propose retail prices that remain around the maximum legal caps. For this reason the Roaming Regulation has been extended until 30 June 2022, and a series of new measures aimed at increasing competition and encouraging operators to offer attractive consumer deals have also been introduced; these revised rules started as of 1 July 2012.
More detailed analysis of information and communication service activities:
Further Eurostat information
- SBS – services (sbs_serv)
- Annual detailed enterprise statistics - services (sbs_na_serv)
- Annual detailed enterprise statistics for services (NACE Rev. 2, H-N and S95) (sbs_na_1a_se_r2)
- SMEs - Annual enterprise statistics by size class - services (sbs_sc_sc)
- Services by employment size class (NACE Rev. 2, H-N, S95) (sbs_sc_1b_se_r2)
- Annual detailed enterprise statistics - services (sbs_na_serv)
- SBS - regional data - all activities (sbs_r)
- SBS data by NUTS 2 regions and NACE Rev. 2 (from 2008 onwards) (sbs_r_nuts06_r2)
- Decision 1578/2007/EC of 11 December 2007 on the Community Statistical Programme 2008 to 2012
- Regulation (EC) No 295/2008 of 11 March 2008 concerning structural business statistics