State of Australia s Fast Growing Outer Suburbs The economic and demographic transition of the Fast Growing Outer Suburbs

State of Australia s Fast Growing Outer Suburbs The economic and demographic transition of the Fast Growing Outer Suburbs

The 31 LGAs that make up the Fast Growing Outer Suburbs Diversity of roles and opportunities

Significant contribution to the economy Around 13% of Australia s jobs are located in the Fast Growing Outer Suburbs. This is higher than Western Australia s contribution. Fast Growing Outer Suburbs - Economic contribution, 2016 Source: National Economics 2017 Economy (GRP) $186.8b Local Jobs 1.52m Businesses Grew by 7.4% (2014-16) 11.3% of Australia s GDP in 2016. Up from 10.3% in 2006 12.8% of Australia s employment in 2016. Up from 9.6% in 2006 more than double national rate (Australia had 3.4%) 3

Major generator of jobs Jobs in the Fast Growing Outer Suburbs (2.6%) are growing at a higher rate than the national average (1.2%) (2011-16) Table: Employment change Annual Average Growth % by part of Aust. Source: National Economics 2017 Annual average growth % 2006-11 2011-16 2015-16 Metropolitan Australia 2.4% 1.6% 5.6% Metro - CBD LGA 3.4% 2.5% 8.9% Metro - Elsewhere 1.9% 1.0% 3.2% Metro - Fast Growing Outer Suburbs 3.3% 2.6% 9.7% Regional Australia 1.8% 0.4% 0.9% Australia 2.2% 1.2% 4.1% 4

Job growth by LGA 2011 to 2016 (top 25) 9 of the top 25 job growth hot spots are Fast Growing Outer Suburb LGAs Source: National Economics 2017 Change LGA No. % Sydney (C) 101,705 19.5% Melbourne (C) 49,170 10.5% Brisbane (C ) 55,713 6.9% Perth (C) 28,076 17.1% Gold Coast (C) 21,336 8.9% Wyndham (C) 20,623 36.4% Hume (C) 20,223 21.3% Blacktown (C) 16,015 14.9% Belmont (C) 14,436 32.5% Bayside (C) 14,410 16.4% Swan (C) 11,938 19.7% Sunshine Coast (R) 10,974 9.9% Casey (C) 10,507 16.5% Parramatta (C) 10,254 6.6% Maribyrnong (C) 9,678 24.5% Adelaide (C) 9,438 7.0% Moreton Bay (R) 9,224 8.2% Wanneroo (C) 9,165 22.3% Cockburn (C) 8,744 23.3% Greater Dandenong (C) 8,678 8.4% Ryde (C) 8,324 9.4% Brimbank (C) 8,297 12.1% Whittlesea (C) 8,157 16.1% 5

More than a butcher, baker, candlestick maker economy Fast Growing Outer Suburb job growth in high-tech/knowledge-based industries is growing faster than the national average (1.6% p.a. vs 1.2% p.a.) Table: Employment change by knowledge intensity, 2011-16 Source: National Economics 2017 Average Annual % Growth Metro - CBD LGAs Metro - Elsewhere Low Tech Med Tech High Tech 2.7% 2.3% 2.8% 1.3% 1.0% 0.4% Metro Fast Growing Outer Suburbs 3.2% 2.4% 1.6% Regional Centres 0.9% 0.6% 0.5% Total Australia 1.5% 1.1% 1.2% High tech refers to industries that create, design or utilise complex technologies and/or utilise high level skills 6

While employment growth has been strong, the Fast Growing Outer Suburbs still face challenges Large job deficits Low share of knowledge jobs Skill gap 69 jobs per 100 employed residents 16% high-tech jobs (national average is 25%) 13% bachelor degree (national avg is 19%) 7

Skills gap divergence Map: Change in share of persons completing year 12 Source: ABS Census 2016 Significant improvement in school completions in the fast growing outer suburbs Year 12 completions (2011 to 2016) Australia: 47.6% to 51.9% (+4.3 ppt) Fast Growing Outer Suburbs: 44.3% to 49.7% (+5.4 ppt) Regional Australia 36.3% to 39.7% (+3.4ppt) Labour force outcomes - Participation rate - Australia, Feb 2017 With bachelor degree = 81% Completed Grade 10 = 50% 8

Imagine the opportunities with a higher share of investment in assets The pace of infrastructure growth is not keeping up with economic and demographic demand. Fast Growing Outer Suburbs generated 35% of population growth and 25% of job growth between 2011-16 but only received 13% of asset growth. Chart: Share of national growth by selected indicators, 2011-16 Source: National Economics, 2017 Note: Metro CBD LGA excludes Brisbane Share of Asset Growth Share of Pop Growth Share of Jobs Growth 13.2% 25.2% 34.8% 0% 10% 20% 30% 40% Metro - Fast Growing Outer Suburbs Metro - elsewhere Regional Centre Metro CBD LGA* 9

State of Australia s Fast Growing Outer Suburbs Economic transition The fast growing outer suburbs are in transition. City building role Increasingly important against the backdrop of rapid economic growth of our cities, agglomeration, & the rise of knowledge/services. Strong economic performance The fast growing outer suburbs are performing strongly against economic, employment and population indicators. Exciting opportunities are emerging. Investment to enable the opportunities But investment is required to lay the foundation to ensure this transition is sustainable into the future. 10

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