Many of the datasets within this economic profile are underpinned by the NIEIR-ID economic model that is updated each financial year. In each update, you can expect to see differences in some of the numbers to previous updates. This is particularly true for recent historical data related to Gross Regional Product, Value-added for some industries, and Local Jobs.

Why has historical data changed?

We regularly update our economic models to ensure they reflect the latest data and economic conditions. This provides you with the most accurate and reliable information for informed decision-making.

While these revisions may affect historical data consistency, we clearly communicate the changes made, their impact, and the rationale behind them.

Here are the key reasons for the revisions:

• New data: Our annual update incorporates information from various sources, including the latest 2021-2022 Input-Output table, providing a clearer picture of local economies.
• Data source revisions: Revisions by the Australian Bureau of Statistics (ABS) to key inputs like labor force and population estimates have necessitated model adjustments.
• Inflation adjustments:For datasets measuring economic activity (e.g., industry value added), we remove price change effects using the Consumer Price Index (CPI). This price base update requires historical data revisions for all related financial data.
• Methodology enhancements: Changes in economic data calculation methods can sometimes lead to revisions.

These improvements enable a more accurate understanding of changes in local economies, which in turn facilitates the development of more effective policies to promote economic recovery and growth.

What was the nature of the revisions in the latest release?

New data

The annual data update incorporates information from various sources. Key sources and their respective release dates are provided below for reference:

• Australian 2021-2022 Input-Output Table – Released in 2024
• ABS National Accounts in $2023CVM – December 2024
• ABS State Accounts in $2023CVM – December 2024
• Australian Industry (8155) in $2022CVM – May 2024
• ABS Labourforce Survey data

Inflation adjustments

From one period to another the quantities and prices comprising transactions in the economy change. This means that when the current price value of an aggregate, such as GRP or value added, in one period is compared with the current price value in another period, the difference between them usually reflects both changes in quantity and changes in price. In order to estimate by how much the 'volume' of GRP has changed between the two periods we need to exclude the direct effects of price change.

The price base used for the 2025 Update is $2022/23 (Chain Volume Measures), reflecting the price changes initially observed in the National Accounts released December 2024, with similar adjustments appearing in the State Accounts around that period. This adjustment corresponds to an approximate 6%-7% increase in Value Added for the corresponding period. Additionally, industries that experienced higher inflation have seen a larger increase in value added compared to those with lower inflation.

Data source revisions

Sector-Level Value Added Differences

Compared to the previous (2024) data release, sector-level Value Added figures have shifted across most sectors. These changes were mainly driven by:

• Employment revisions (as noted above)
• Inflation adjustments (particularly in mining)
• Updates to the ABS State Accounts.

Input-Output Utilisation

The Input-Output table used in this year’s data update continues to reflect the lingering effects of the COVID-19 period. This has led to several challenges, including:

• Accommodation and Food Services (Industry H): The balance between Accommodation and Food & Beverage Services within this broader industry category remains distorted, deviating from long-term trends.
• Mining Industries (B): The relative distribution among Coal (6), Iron Ore (7), and Oil & Gas (8) has shifted, primarily due to fluctuations in commodity prices.

Labour force revisions

The Australian Bureau of Statistics (ABS) made significant revisions to the Labour Force Survey, resulting in a reduction of approximately 50,000 employed persons nationally (dating back to 2018). In addition, the revision have not been uniform applied across all regions, notable changes are:

• NT has a reduction of 35,000 employed
• Many Rural regions around Australia show a reduction of employed persons
• Metro regions show a gain in employment.

Revisions to Tourism Sector estimates

The Australian Bureau of Statistics’ Tourism Satellite Account (TSA) presents economic information on tourism activity in Australia and is a fundamental input into the modelling of regional tourism by NIEIR. The 2023-24 Financial Year TSA has incorporated methodological changes that have resulted in large scale revisions to estimates of tourism activity at the national level.

A comprehensive review of the methods and data sources used to compile the TSA was conducted and resulted in changes to all economic variables. Tourism GVA, net taxes and output were revised back to 2004-05 and tourism employment has been updated back to 2016-17.

The changes were substantial at a national level with later years more impacted than recent years. For example, the estimated direct tourism related jobs in Australia in 2016/17 and 2017/18 has been revised down by almost 100,000 in both years. Estimates for the most recent 2022/23 financial year have been revised upward. The biggest impacts in terms of historical downward employment revisions are in the Cafes, restaurants and takeaway food services industry. In terms of GVA, the Air Transport industry experienced a considerable upward revision to previous years’ estimates

Difference in job estimates between TSA 2022-23 and TSA 2023-24:

How these revisions play out at a local level will differ dependent on the industry makeup of individual economies. For example, how important cafes and restaurants or airport activities are to the visitor economy in the LGA. If you identify any substantial changes to your historical local tourism estimates that you would like to be clarified, please contact the team at .id.