Improvements in technology, the strong dollar and increasing global competition have sent 80,000 service sector jobs overseas in the past four years, putting pressure on the country to reinvent its economy before the mining boom ends.

The erosion of the sector suggests time is running out for Australia to remain globally competitive in higher-skilled service-based industries, according to the report by the Melbourne-based National Institute of Economic and Industry Research.

"The window to build a place in the global industry is closing as other players occupy strategic positions," the report said. "There is a danger facing Australia now that not only will we fail to take a role in the global market but that we will de-skill our workforce by moving key parts of the service sector off-shore."

The grim report for Australia's service sectors comes days after the Reserve Bank flagged an earlier end to the mining investment boom, as it cut interest rates to support the weaker patches in the economy. The slowing of the mining boom is expected to put pressure on the economy, which has been buffered from the global financial crisis through buoyant exports for commodities. Overnight, the International Monetary Fund lowered its growth forecast for Australia next year to 3 per cent, from an earlier call of 3.5 per cent.