Surprise new jobless rate puts Wollongong ahead of nation (and we're keeping the crown)

In that month, the Small Area Labour Markets publication was released, showing unemployment rates at a local level.

For Wollongong, the rate was 2.7 per cent, beating regional NSW, the state as a whole and Australia.

According to Mark Grimson, economic development manager at Wollongong City Council and i3Net board member, this was extraordinary.

"I would say that's the lowest it's been in 50 years and that is a very unique situation," he said.

"Historically, we've always been two or three percentage points above the national, state average, so that is a pretty significant statistic in itself."

As someone who has been involved in guiding the city's economic development for more than a decade, the flip in Wollongong leading the nation shifts the way economic planners would traditionally think about the region, from having not enough jobs to confronting a skills shortage.

And it's a situation that is here to stay, Mr Grimson said.

"I don't think it's an aberration, it's that diversity across key sectors."

From a region that was once dominated by a few key industries such as manufacturing and mining, the city's economy has diversified, particularly in the past decade - partly through planning, but in other cases by necessity.

The layoffs and cost cutting at major employer BlueScope in the early 2010s forced many skilled workers into early retirement or new careers. Some of those who left jobs at the steelworks and associated industries became the first generation of IT entrepreneurs who nurtured the city's fledgling tech scene.

Now, the city is reaping the benefits.

"We've got companies who are today running global businesses out of Wollongong, they weren't there a decade ago," Mr Grimson said.

The city has also been a target for investment in premium office space, overcoming its lack of available space for larger commercial businesses. This has attracted a steady but consistent stream of businesses who have relocated from elsewhere in the state, or seen Wollongong as an attractive place to scale up their operations.

"We've seen a 75 per cent uplift in office space in the last three to four years," Mr Grimson said.

"For a city of our size, we had a very underdeveloped office market in the CBD."

Combine these trends with the sudden arrival of work from home - and its lingering effects - and the daily exodus of up to 30,000 Wollongong residents to work in Sydney has significantly reduced.

Add all of this up and the city, and the wider region, is in the box seat economically, Mr Grimson said, and looking at what's ahead, it is likely to stay that way.

"In addition to these relatively new opportunities, you've also got a situation where historic, traditional industries like BlueScope, and manufacturing and engineering companies in Wollongong have never been busier and now BlueScope is investing $2 billion over the next five years and on top of that, they've announced this masterplan."

While some sectors of the economy may be booming, the retail and hospitality sectors have been hit by cutbacks in consumer spending, on top of the impact of COVID and the move to online retail. This has hollowed out some CBDs, including the middle of Wollongong.

Mr Grimson - who was previously city centre revitalisation manager at Wollongong City Council - said with more people living in the CBD, as well as attracting visitors from growing areas of South West Sydney, the local economy would bounce back.

"There is no doubt in my mind that the two things that underpin retail and hospitality are CBD workers and CBD residents, that's the success," he said.

"As we continue to strengthen the overall economy, that will be the key difference for retail and hospitality."

To safeguard these gains, Mr Grimson said the Illawarra would need to maintain its lead in domestic manufacturing, particularly in defence and renewable energy, without letting production move offshore.

"We need to try and avoid the situation where in Australia we have more rooftop solar than anywhere in the world, and yet we import 100 per cent of the solar panels."

While there was an important role for policy to play in setting local content targets, Mr Grimson said, local organisations - such as i3Net - also needed to work together to showcase the region to potential investors.

"We have some of the best, most capable people, whether it be in engineering, fabrication or whatever the case might be." he said.

"We shouldn't be apologetic in any way."

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