Review of Wollongong's Economic Performance
Case Studies Economics
The Client
City of Wollongong
Challenge
The local council was keen to take stock of where the economy is at the mid-term point of their economic development strategy timeframe and how it has performed against relevant targets.
Our Method
.id prepared a comprehensive report covering the context of the original targets set in the EDS, how the economy has performed compared to the past and benchmark locations, and what the forecast for the next five years looks like.
Highlights
We identified that the local economy has outperformed the NSW average in a number of metrics in recent years. Average economic growth in the five years to 2022/23 was 3 times that of the previous decade which was impacted by heavy job losses by Bluescope. While growth in employed residents is still slightly stronger than local jobs, the gap hasnt grown as much as the past. In addition, with hybrid work conditions many previous commuters are now staying in the LGA 2-3 days a week contributing to local expenditure and engaging more in their communities.
Results
The outcome for the council is evidence-based insights that helped council get a real picture of the performance their actions have contributed to and also key information that can lead discussions with new councillors.
Economic Review of Wollongong
In 2024, our consultants conducted an analytical review of the Wollongong economy to identify recent performance against a number of metrics at the mid-term point of the council's Economic Development Strategy. Here's what we found.
The local economy has outperformed the NSW average in a number of metrics in recent years.
Average economic growth in the five years to 2022/23 was 3 times that of the previous decade which was impacted by heavy job losses by Bluescope. The last five years saw economic growth at 2.5% p.a. compared to 2.0% p.a. for the state average. Population growth averaged 0.5% p.a., therefore the change in GRP per capita (residents) in Wollongong over the five years to 2022/23 was very strong at 2.0% p.a., well above the state average (1.1%).
Unemployment reached historical lows
Like most locations, COVID impacted performance in 2019/20, but local recovery was very strong. Growth was influenced by substantially low unemployment rates and very high participation rates. The 12-month average unemployment was estimated at 2.7% in June 2023 – a 50 year low.
Business growth also strong
Registered business numbers in the Wollongong LGA increased by 14.4% in the three years to June 2023 (14.4%), stronger than for NSW (10.8%). Business growth was led by construction, professional services, and health care.
Stronger growth in residents employment vs jobs not as much a problem as the past
While residents were gaining employment at slightly faster rates than local jobs creation, the impact to the community may not be as strong as the past. Hybrid work conditions have continued post-COVID and rail passenger numbers data would suggest 8,500 residents were likely to be working from home in 2023, an extra 5,000 residents compared to 2018.
Future growth opportunities
A number of actions could help support increased economic activity including continued advocacy and support for the transitioning of Wollongong’s major industrial sectors to meet a low-carbon future. Port Kembla has been nominated as one of two green hydrogen hubs across the state. Major investment is occurring in a number of areas and local businesses are also expanding.
About our economic consulting team
Our economic consulting team is engaged by councils and organisations across Australia to provide in-depth insights behind the data. Our experts draw on their knowledge of urban and regional economic development and years of experience working with decision makers across Australia. This information is used by councils to develop evidence based economic development strategies, investment attraction plans and support grant applications.
If you need help on a project, please contact us and we will get in touch.
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