The Hunter region is experiencing a promising economic outlook, with a projected 34,000 jobs over the next five years. This growth is attributed to the energy transition and infrastructure projects, marking a significant shift in the region's economy. The analysis by KPMG's Enterprising Cities report highlights the region's resilience and potential, despite economic headwinds. The post-COVID jobs boom has created a stable employment environment, with unemployment at historic lows and workforce participation rates rising. The region's business landscape is thriving, particularly among large-scale enterprises, with a 17% surge in businesses turning over more than $10 million in the past two years. Mid-sized businesses have also grown by 12% during the same period. The energy transition initiatives, including the shift towards renewable energy production and infrastructure improvements, are expected to invigorate the economy further. However, the region faces challenges, such as fuel price shocks linked to the conflict in Iran, which could impact diesel-reliant sectors. The construction industry, despite being the third largest employer, is facing higher costs and flattened home building trends. The housing market is experiencing a shift towards higher-end properties, with a decrease in approvals for dwellings between $600,000 and $800,000. This trend raises concerns about regional liveability and accessibility for lower-income earners and renters. The manufacturing and infrastructure sectors are expected to remain strong, with a focus on knowledge-based roles and broader nation-building investments. The region's economy is diversifying, attracting new residents and businesses, and positioning itself as a competitive alternative to Sydney. However, the report also highlights the need for caution, as sectors with thin profit margins, such as retail and hospitality, are facing challenges due to rising costs and cooled consumer sentiments. The Hunter region's economic outlook is a testament to its resilience and potential, but it also underscores the importance of addressing the challenges to ensure a sustainable and inclusive growth trajectory.
