Economic Spotlight on Sunshine Coast

Economic Spotlight on Sunshine Coast

In 2023, our consultants conducted an Economic Health Check for the Sunshine Coast economy as council looked to explore recent trends and identify what factors or industry changes were driving the economy. Here's what we found.

Economic recovery post-COVID-19

The Sunshine Coast experienced a strong economic recovery from the COVID-19 pandemic, driven by continued population growth and fewer lockdowns compared to other east coast regions. This resulted in economic activity and employment rebounding quickly, with the region maintaining growth that was only slightly weaker than the Southeast Queensland average.

Employment growth and low unemployment

Economic activity and job growth remained strong into 2022 with the unemployment rate dipping below the Southeast Queensland average and becoming one of the lowest in the region. Employment growth was significantly driven by population-serving industries and knowledge economy workers, with substantial expansion in Health Care and Social Assistance sectors.

Increased construction activity

Construction activity remained high through the COVID-19 period, with the value of building approvals increasing annually over the last four years. This growth was predominantly driven by residential construction and buildings serving the growing population, such as schools.

Emerging knowledge and professional services economy

The Sunshine Coast saw an increase in Professional, Scientific, and Technical Services. Leveraging high remote work rates, the region has the potential to attract regional outposts and facilities supporting remote working. The growth in this sector signifies a shift towards a more diversified and knowledge-based economy.

Spatial differences

Small area Census analysis highlighted divergent employment growth stories across the LGA. For example, the Wutulla Birtinya area saw the largest jobs growth between 2016 and 2021 driven by the Sunshine Coast Health Precinct anchored by the Sunshine Coast University Hospital. In contrast, Nambour saw a fall of an estimated 1,700 jobs as health care workers were relocated to the new facility. 

Future growth opportunities and risks

The Sunshine Coast will continue to benefit from population growth due to lifestyle and affordability relative to Brisbane. Major projects such as the Maroochydoore City Centre will potentially attract more commercial investment and boost professional services. Short term emerging risks included persistent high inflation and a weakening economy. Ongoing labour and supply constraints in the building industry could impact construction commencements and completions.

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.

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