1.GENERAL
The Survey of Trade, Services, Transport, Communications and Construction for 2006 was conducted for the purpose of estimating outputs and the distribution of inputs in Trade, Services, Transport, Communications and Construction.
This survey is a continuation of a series of surveys on trade and services. The series began with the 1995 survey, which was conducted in the process of preparing input-output tables.
The data presented in this publication are the results of the Survey of Trade, Services, Transport and Communications for 2006 (Table 1 presents comparative data from the survey of 2004-2005), which is part of a survey of all industries in the economy (excluding agriculture).
As of 2005, data on Construction industries are also included in the survey of all industries in the economy. In this publication, data on Construction industries for 2005-2006 are presented for the first time.
In 2004, a new sample of dealers was extracted from the Business Register established by the Central Bureau of Statistics. The sample included all industries in the economy except for Agriculture. The Business Register includes information from the VAT file and the Employers file of the National Insurance Institute. This sample of all industries was determined according to the revenue reported to VAT.
The population of active dealers obtained from the Business Register includes dealers in the business sector who have employees, as well as self-employed dealers in the business sector. Dealers exempt from VAT (minor dealers whose annual turnover does not exceed a certain sum, which is determined each year) are not included.
The following industries were investigated within the framework of the survey:
All Construction industries
All Trade industries
Restaurants and Dining Services
Transport and Storage Services
Telecommunications Services
Financial Intermediaries and Insurance Agents
Real Estate Activities
Business Activities
Education Business Services
Health and Welfare Business Services
Social, Personal, and Other Services
The survey did not cover the following industries:
Banking
Insurance Companies
Accommodation Services
Sale of Food, Fruit and Vegetables at Stands and Markets
Start-up Companies (see Para. 2.6)
Services of Private Teachers
Services to Households by Domestic Personnel
The data on these industries were obtained from other sources, and are included in Table 1 as well as in some of the detailed tables.
Banks and insurance companies do not report their revenue to VAT, and were therefore not sampled. Their details were obtained from the Bank of Israel and the Department of Insurance and Capital Market in the Ministry of Finance.
Data on accommodation services are obtained from a special survey on tourism which was conducted by the Central Bureau of Statistics.
Sale of food, fruit, and vegetables at stands and in markets is exempt from VAT. Therefore those businesses are not listed in the VAT file.
Start-up companies – sometimes those companies have no revenue. Because the sample of all industries in the economy is determined according to VAT revenue, those companies are not sampled (see explanation on p. XXII).
Services of private teachers and services for households belong to the group of dealers exempt from VAT. Therefore, an estimate was calculated for those two groups.
In addition, the population in the VAT files does not include non-profit institutions or governmental and municipal institutions. It should be pointed out that the data in the tables differ from the data based on VAT revenue only, as they appear in Current Statistics 17/2007,[1] because they include activities that are not reported to VAT authorities, as well as different definitions of output and changes in classification (see comparison in Table D).
The classification of the surveyed industries is according to the Standard Classification of All Economic Activities, 1993.[2]
The main sources of the survey data were the financial reports of the dealers submitted to the Income Tax authorities, and reports of employers to the National Insurance Institute on the number of employees and salary.
The survey period covers the fiscal year 2006.
In Table 2, data on revenue, output, compensation for jobs, and gross value added are presented for the first time by detailed groups. Not all of the divisions are published in order to maintain statistical confidentiality.
The publication includes tables with data on revenue, output, compensation for jobs, and gross value added:
-by divisions and groups.
-by size groups of revenue and by size groups of jobs per dealer, in order to provide a breakdown of the various industries by small, medium and large dealers.
-by sector classification. These tables were prepared according to the requirements of the System of National Accounts, 1993.[3]The recommendations were made jointly by five international bodies: Eurostat, World Bank, OECD, IMF, United Nations.
The publication also presents a summary of the balance sheet data of the surveyed industries for 2005-2006, as well as a summary of the gross capital formation in fixed assets for 2006, by various components, according to the requirements of the new system of national accounts.
1.1Tables in the Publication
1.1.1Trade, Services, Transport and Communications Industries
Table 1 presents data on the number of dealers, jobs, revenue, output, gross value added, and compensation for jobs in the surveyed industries, by division.
Table 1A presents relationships between the data appearing in Table 1: compensation for jobs as a percentage of the gross value added and as a percentage of revenue or of output; the gross value added in the industry as a percentage of revenue or output; output, gross value added, and the compensation per job for each year.
Table 2 presents data on the number of dealers, jobs, revenue, output, gross value added, and compensation for jobs in the surveyed industries, by group.
Tables 3-6 present the characteristics of the surveyed industries according to size groups of jobs per dealer.
Tables 7-10 present the characteristics of the industries according to size groups of average revenue per dealer.
Tables 11 and 12 present the characteristics of the survey industries by sector classification.
Tables 13-15 present a summary of the balance sheet data of the surveyed industries.
Table 16 presents the gross capital formation in fixed assets, by components and by industry.
Not all industries are published in these tables, in order to maintain statistical confidentiality.
1.1.2Construction Industries
Table 17 presents data on thenumber of dealers, jobs, revenue, output, gross value added, and compensation for jobs in the surveyed industries, by group.
Table 17A presents relationships between the data appearing in Table 17: compensation for jobs as a percentage of gross value added and as a percentage of output; the gross value added in the industry as a percentage of output; output, gross value added, and compensation per job, by group.
Table 18 presents the characteristics of the surveyed industries according to size groups of jobs per dealer.
Table 19 presents the characteristics of the industries according to size groups of average revenue per dealer.
Tables 20 presents the characteristics of the survey industries by sector classification.
Tables 21-23 present a summary of the balance sheet data of the surveyed industries.
Table 24 presents the gross capital formation in fixed assets, by components and by industry.
1.2The Business Sector
The business sector includes all of the industries in the economy, except for public services (provided by the government, local authorities and national institutions) and community services provided by non-profit institutions.
The business sector includes the following industries: Agriculture, Manufacturing, Construction, Electricity and Water, Trade, Accommodation Services and Restaurants, Transport and Communications, Finances, Business Activities, Personal Services, Health and Education Business Services, and Community Business Services.
The system of information on industries at the Central Bureau of Statistics includes:
1.Labour force surveys – quarterly households surveys.
2.Monthly data on employment and wages – from the National Insurance Institute.
3.Data on revenue and dealers – monthly data from VAT authorities.
4.Annual estimates of product, by divisions within the national accounts framework.
5.A detailed data system broken down by industries (output, input, uses, gross value added) within the framework of the Input-Output Tables.
This publication is intended to fill in gaps in current statistical information.
The survey of Trade, Services, Transport, Communications and Construction investigated dealers belonging to the business sector, except for public institutions and non-profit institutions.
2.MAIN FINDINGS
Table A and Tables 1 and 17 present a general synopsis of the economic activity of the surveyed industries based on the survey data, with the addition of data on Hotels and Accommodation Services (Division 55); Banking (Division 67); Insurance and Social Insurance Funds (Division 68); Start-up Companies (Division 73); and Services for Households by Domestic Personnel (Division 97), which were collected from other sources. The tables also present data on Manufacturing industries obtained from the Manufacturing Survey.
Table A. Jobs and Gross Domestic Product(a) in the Total Economy and
in the Surveyed Industries, 2005-2006
at production factor prices
2005 / 2006 / 2005R / 2006
Thou-
sands / Percen-tages / Thou-
sands / Percen-tages / NIS
Million / Percen-tages / NIS Million / Percen-tages
Total Economy / 2,722.6 / 100.0 / 2,801.0 / 100.0 / 506,737 / 100.0 / 553,747 / 100.0
Total Business sector / 2,181.6 / 80.1 / 2,249.5 / 80.3 / 356,114 / 70.3 / 394,502 / 71.2
Thereof:
Surveyed industries / 2,046.2 / 75.1 / 2,118.2 / 75.6 / 328,368 / 64.8 / 358,711 / 64.8
B / 10-39 / Manufacturing / 329.2 / 12.1 / 346.1 / 12.4 / 80,776 / 15.9 / 89,524 / 16.2
D / 45-46 / Construction / 149.3 / 5.5 / 152.6 / 5.4 / 17,702 / 3.5 / 20,151 / 3.6
E-F / 50-53
55-56 / Trade and accommodation
services and restaurants / 523.4 / 19.2 / 523.8 / 18.7 / 57,867 / 11.4 / 63,732 / 11.5
G / 60-64 / Transport services / 118.8 / 4.4 / 122.3 / 4.4 / 22,564 / 4.5 / 22,108 / 4.0
65-66 / Postal and courier activities and telecommunications / 47.8 / 1.8 / 50.2 / 1.8 / 15,452 / 3.0 / 15,455 / 2.8
H-I / 67-68
70-76 / Financial and business services / 591.5 / 21.7 / 613.0 / 21.9 / 108,880 / 21.5 / 119,626 / 21.6
72-73
/ Thereof:
Computer and related
services and
research and
development
including estimates
for start-up
companies / 87.5 / 3.2 / 95.1 / 3.4 / 29,254 / 5.8 / 31,237 / 5.6
K-L / 80
85-86 / Education and health
business services / 152.9 / 5.6 / 164.6 / 5.9 / 13,097 / 2.6 / 14,463 / 2.6
M-N / 90-97 / Personal and other
services, n.e.c. / 133.3 / 4.9 / 145.6 / 5.2 / 12,029 / 2.4 / 13,651 / 2.5
(a)Referred to as product in the total economy, and referred to as gross value added in the surveyed industries.
(b)Incl. jobs of foreign workers (workers from abroad and workers from Judea and Samaria and the Gaza Area).
The data in the table A show that about 76% of all of the jobs in the economy were in the industries examined in the survey of all industries in the economy, whereas the gross value added of those industries comprised 65% of the total gross domestic product of the economy in production factor prices.
In 2006, 12% of all jobs and 16% of the product in the economy were in Manufacturing industries.
That year, about 5% of the jobs and 4% of the product in the economy were in Construction industries.
Approximately 19% of all jobs in the economy were in Trade and in Accommodation Services and Restaurants. The gross value added of the above industries accounted for approximately 12% of the total gross domestic product of the economy.
In 2006, approximately 22% of the jobs in the economy were in Financial and Business Services, their share of the total product was the same (22%). Within this group of industries, Computer and Related Services and R&D – including the estimate of start-up companies – is noteworthy. In 2006, the share of jobs in this industry out of all jobs in the economy was 3%, and the share of this industry in the product was approximately 6%.
The share of jobs in the Transport industries and the share of those industries in the total product of the economy were similar (approximately 4%).
In the Postal Services and Telecommunications industry, the share of jobs was 1.8%, and its share in the total product of the economy amounted to approximately 3%.
Approximately 5.9% of all jobs were in Education and Health Business Services (including Welfare and Social Work), and the share of those industries in the product amounted to approximately 2.6%.
Personal and Other Services accounted for approximately 5% of all jobs in the economy, and their gross value added amounted to 2.5% of the total product of the economy.
2.1Trade (Divisions 50-53)
Trade includes sale of motor vehicles, gas stations, repair of motor vehicles, wholesale and retail trade, and repairs of personal and household goods. In 2006, approximately 95,700 dealers were active in this industry, with 386,000 jobs. The revenue of this industry totaled approximately NIS 386 billion – an increase of 8% compared with 2005, and the output totaled approximately NIS 97 billion – an increase of approximately 8% compared with 2005.
Trade and Repair of Motor Vehicles and Sale of Fuel (Division 50), included approximately 11,300 active dealers in 2006 – 12% of all dealers engaging in Trade. Their revenue constituted 16% of the total revenue, and their output constituted approximately 17% of the total output for Trade industries. There were approximately 56,900 jobs in the division in 2006, and the output totaled approximately NIS 17 billion – an increase of approximately 14% compared with 2005.
In 2006, the revenue of Wholesale Trade (Division 51) amounted to approximately NIS 211 billion (55% of total Trade revenue), and output amounted to approximately NIS 46 billion (47% of the total Trade output). There were approximately 137,000 jobs in this division (35% of all jobs in Trade industries).
Retail Sale and Repairs of Personal and Household Goods (Divisions 52-53), included most of the dealers and jobs in trade industries: 61,000 dealers in 2006, with 192,000 jobs. By contrast, the revenue of Retail Sale constituted 29% of total revenue and its output constituted 35% of the total output for Trade.
Notably, Retail Sale of Food, Beverages and Tobacco (Group 520) included imputation of fruit and vegetable sales in markets that do not report to the VAT authorities.
2.2Restaurants and Dining Services (Division 56)
According to the standard classification of economic activities[4], this division includes: restaurants, cafes, pubs, kiosks, banquet halls, catering, and take-away services. In 2006, there were 16,200 dealers in this division, with 110,000 jobs. The output of this division amounted to NIS 16.3 billion. In previous publications, the output of this division was equal to revenue less food expenditures that were included in private consumption (in national accounting). In accordance with the changes occurred in the definition of private consumption in the national accounts, as of 2003 output includes food expenditures in Division 56, which were classified as input. The gross value added of the division totaled approximately 34% of the total revenue, of which compensation for jobs amounted to approximately 29%, and other value added amounted to approximately 5%.
2.3Transport and Storage (Divisions 60-64)
2.3.1Land Transport (Division 60)
The Land Transport division includes bus, taxi, truck and train services. In 2006, there were 33,000 dealers in this division, with 72,500 jobs. The output of the division amounted to NIS 21.5 billion. The gross value added of the division reached NIS 10.5 billion (49% of the output), compensation for jobs constituted 37%, and other value added constituted 12%.
2.3.2Water Transport (Division 61) and Air Transport (Division 62)
In 2006, there were 9,300 jobs in these divisions. That year, the output of the divisions amounted to NIS 20.2 billion, and their gross value added constituted about 18% of the output. Compensation for jobs constituted 11%, and other value added constituted 7%.
In some of the tables, data on these divisions do not appear, in order to maintain statistical confidentiality.
2.3.3Auxiliary Transport Activities (Division 63)
The division includes: port services, airport services, shipping and aviation agencies, customs agents, travel agencies, etc.
In 2006, there were approximately 2,600 dealers in the division, with 35,000 jobs. The output of the division amounted to NIS 12.5 billion, of which gross value added constituted approximately 55%. Of that amount, compensation for jobs constituted approximately 39%, and 16% was other value added.
2.4Postal and Courier Activities and Telecommunications (Divisions 65-66)
The division includes the national postal and telecommunications services, postal agencies, private courier services, private telecommunications services, cable television, cellular telephone companies, Internet companies, etc.
2.4.1Postal and Courier Activities (Division 65)
In 2006, there were 1,043 dealers in this division, with 11,900 jobs. The output of the division amounted to NIS 3.1 billion, of which approximately 46% was gross value added.
2.4.2Telecommunications (Division 66)
In 2006, there were 38,300 jobs in this division. The output of the division amounted to approximately NIS 29.4 billion, of which gross value added constituted about 48%. Compensation for jobs amounted to approximately 18%, and the remainder was other value added. The other value added in this industry was high, due to royalties and concessions paid by the telecommunications companies. The gross value added of the telecommunications division comprised 2.5% of the total gross domestic product in the economy. The output of the division did not change in 2006, following an increase of 6% in 2005. The gross value added increased by the same percentage in 2006 as in 2005.
2.5Banking, Insurance and Other Financial Institutions (Divisions 67-68)
These divisions include: commercial, mortgage and other banks, financial intermediation, insurance companies and provident funds, insurance agents, assessors, etc.
2.5.1Banking and Other Financial Institutions (Division 67)
In 2006, there were 59,000 jobs in this division. The output of the division amounted to approximately NIS 38 billion, and the gross value added was NIS 25 billion - approximately 4.6% of the total gross domestic product in the economy.
2.5.2Insurance and Provident Funds (Division 68)
There were 28,000 jobs in this division in 2006. The output of the division amounted to approximately NIS 20 billion, and the gross value added amounted to approximately NIS 9.1 billion – approximately 1.6% of the total gross domestic product in the economy.
2.6Real Estate, Renting and Other Business Activities (Divisions 70-76)
In 2006, there were approximately 526,000 jobs in these divisions. The output of these divisions amounted to NIS 140.4 billion and the gross value added amounted to NIS 85 billion.
This industry includes: real estate activities; renting of machinery, equipment and vehicles; computer services; research and development (including estimates of start-up companies); labour recruitment and provision of personnel services; security and cleaning services; and other services such as those of lawyers, accountants, architects, engineers, advertising agencies, market research, etc.
It should be noted that Labour Recruitment and Provision of Personnel (Division 74) includes workers provided for various industries. Because the number of jobs in this group cannot be assessed by industry, it is biased upward. Businesses that recruit workers for specific industries were not included in the survey in the division Labour Recruitment and Provision of Personnel, and are classified as part of the industries that employ those workers.