Using ABS, Census and council data, SGS Principal, Terry Rawnsley, recently provided an insight into jobs growth in Melbourne to inform a government inquiry into increasing productivity in the Victorian economy.
Terry's work indicates that as a result of the strong, sustained jobs growth in Melbourne over the past two decades, the number of employees in the City of Melbourne has reached 500,000 in the past September quarter.
The reasons for strong employment growth in Melbourne are a combination of both planned and economic factors. Strong employment in the City of Melbourne has been helped by the relocation of manufacturing from the city centre and the availability of Southbank and the Docklands to accommodate the growing service industry.
Compared to cities such as Sydney, which have to accommodate their employment growth at greater distances from the CBD, the availability of land close to the CBD has put Melbourne at an advantage. The large supply has allowed Melbourne to offer relatively low rents, which has, in turn, increased business diversity in the city.
Furthermore, as a result of state and local policy, the resident population of the city has increased and the city has become a destination for food, retail and entertainment. This has resulted in a vibrant nigh time economy and has increased business confidence in the city.
Terry argues that to continue to accommodate an increasing workforce, investment must be made in the transport network, or there is a risk of jobs moving elsewhere.
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