Australia's service industries, which employ a large proportion of Australians are reportedly not prospering at all. One of the largest, the Hospitality and Personal Services sector is losing its share of international markets and more jobs are being moved overseas due to the lack of skilled local workers.

A report for the service industry unions estimates that Australia could lose up to one in ten service-sector jobs over the next two decades. This is equivalent to a loss of a 1000 jobs per week. These jobs are not just the lower-skilled positions, but the high- to intermediate-skilled ones, meaning that the crisis is even more concerning.

The Business Council of Australia already voiced its concerns last year about the sector, and union groups are equally worried.

A report by the National Institute of Economic and Industry Research (NIEIR), Off-shore and Off Work is both a wake-up call for Australia's economic managers and also a call to action for employers and employees.

Since the communications revolution began in the 1980s, the service industry has joined the global economy and Australians are in demand elsewhere in the world as well as at home. It is thought that the fall of worldwide telephony costs and the Internet has brought about overall lower communication costs, creating the opportunity for many services to be performed or delivered from all corners of the globe.

As a result, several countries have been pursuing opportunities to develop international service economies. However, Australia does not currently have such a strategy.

Thus the report recommends a focus on developing a strong service sector that can compete in the changing global market.