This document summarizes a presentation about the state of Australia's fast growing outer suburbs (FGOS). It notes that FGOS now account for 11.3% of Australia's GDP and their economies and populations are growing rapidly. However, FGOS still lag behind major cities in measures like the percentage of high-skilled jobs and residents with university degrees. The presentation argues that further investment is needed in FGOS to support skills development, build up local industry clusters, expand cultural and research institutions, and improve infrastructure in order to maximize their economic potential and productivity.
4. Today’s presentation
1. Influencing the narrative
2. Why do the Fast Growing Outer Suburbs matter?
3. Why investment is required now
4. Four ways that FGOS can make cities great again
4
5. A story of transition and opportunity
Economy (GRP)
$186.8b
11.3% of Australia’s
GDP in 2016. Up from
10.3% in 2006
Local Jobs
1.52m
12.8% of Australia’s
employment in 2016. Up
from 9.6% in 2006
Businesses
Grew by 7.4% (2014-16)
More than double national
rate (Australia had 3.4%)
Source: National Economics, ABS 5
6. Growth and diversity
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
1991 1996 2001 2006 2011 2016
Source: ABS Census of Population and Housing
Historical Population Growth, FGOS
(enumerated population)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
1991-96 1996-01 2001-06 2006-11 2011-16
Change in medium and high density
dwellings, FGOS
Australia's population is growing faster than in
almost any other OECD economy (Lowe 2014)
FGOS annual growth
Aust annual growth
6
8. From retail to
research
High skilled jobs in FGOS
grew by 70,000
between 2011 and 2016
Source: ABS Census of Population and Housing. See data limitations about comparing 2011 and 2016 place of work data
Date note: High skill is defined by the ABS Occupation definition – level 1
-30,000 -20,000 -10,000 0 10,000 20,000 30,000 40,000 50,000
Hospitality
Admin
Transport & Logisitcs
Other Services
Mfg.
Const.
Retail
Real estate
Mining
Wholesale
Arts & Rec
Ag
Govt
Utilities
Health
Media & telco
Fin services
Ed & training
Prof services
High skill Low to medium skill
Employment growth by industry by occupation skill type,
FGOS, 2011-2016
8
9. The type of
high skill jobs
in the FGOS
Source: ABS Census of Population and Housing
Occupation Change
School Teachers 10,183
Midwifery and Nursing Professionals 7,497
Construction, Distribution and Production Managers 4,352
Chief Executives, General Managers and Legislators 3,502
Medical Practitioners 3,391
Social and Welfare Professionals 3,305
Business Administration Managers 2,889
Health Therapy Professionals 2,608
Sales, Marketing and Public Relations Professionals 2,556
Accountants, Auditors and Company Secretaries 2,502
Engineering Professionals 2,476
Health Diagnostic and Promotion Professionals 2,160
Information and Organisation Professionals 2,136
Advertising, Public Relations and Sales Managers 1,972
Education, Health and Welfare Services Managers 1,963
Architects, Designers, Planners and Surveyors 1,672
Miscellaneous Education Professionals 1,639
Miscellaneous Specialist Managers 1,369
Business and Systems Analysts, and Programmers 1,337
ICT Managers 1,104
Financial Brokers and Dealers, and Investment Advisers 1,092
Natural and Physical Science Professionals 1,040
High Skill Occupations in FGOS – Largest growth 2011-16
9
10. Early stages of
economic
transition, but
still a long way
to go
Share of high skill jobs
FGOS 24%
Metro 34%
Source: ABS Census of Population and Housing
0% 10% 20% 30% 40% 50% 60%
Metro - CBD LGA
Metro - Elsewhere
Metro - Fast Growing Outer Suburbs
Regional Centres
Share of high skill jobs by LGA typology, 2016
10
12. Capital cities
are driving
Australia’s
productivity
Table: Employment change – Annual Average Growth % by
part of Aust.
12
Capital cities have
accounted for 90% of
Australia’s employment
growth between 2011-16
2006-11 2011-16
Capital City 2.4% 1.6%
Metro - CBD LGA 3.4% 2.5%
Metro - Elsewhere 1.9% 1.0%
Metro - High Growth Fringe 3.3% 2.6%
Regional Australia 1.8% 0.4%
Regional Centres 2.0% 0.7%
Peri-urban metropolitan 2.3% 0.4%
Rural and Remote 1.2% -0.1%
Australia 2.2% 1.2%
Source: National Economics
13. Our cities need
successful
Fast Growing
Outer Suburbs
A doubling in city size is
associated with a
productivity increase of
between 2 and 5%
Source: Ahrend et al (2014) OECD 13
“There are some sorts of
industry, even of the lowest
kinds, which can be carried
on no where but in a great
town”
Adam Smith 1776
15. “The
broomstick in
the road”
Professor Phillip O’Neill,
Job Slide Report,
Western Sydney
University
-350,000
-300,000
-250,000
-200,000
-150,000
-100,000
-50,000
0
2006 2011 2016 2021 2026 2031 2036
WS Airport arrives
Difference between jobs and employed residents, Greater
Western Sydney
Sources: Western Sydney University and .id
NSW Transport Job Target
Maintains 0.84 jobs per
employed resident
No change to historical
employment growth p.a.
15
16. How do we
remain
productive?
In 2016, there were 69
local jobs for every 100
workers living in the Fast
Growing Outer Suburbs
16
Road
congestion
estimated at $15
billion per year.
This is projected
to increase to
$53 billion per
year by 2031
CEDA 2016
20. Skill levels are
improving, but
still falling
behind the
national average
Completed year 12
49.9%, up from 38.4% in 2016
University degree
15.6%, up from 7.8% in 2006
FGOS
Australia
0
5
10
15
20
25
1991 1996 2001 2006 2011 2016
Share of population with a bachelor degree or higher
(aged 15+), 2016
Sources: ABS Census of Population and Housing
To reach the national qualifications level, an extra 207,606
FGOS residents would have to have finished a degree.
20
21. Housing as an
economic
development
strategy
Just add Spring, Lake or
Link to the estate name
0%
5%
10%
15%
20%
25%
30%
35%
40%
Bachelor or higher Advanced
Diploma and
Diploma Level
Certificate Level No qualification
Point Cook City of Wyndham
Level of qualification, 2016
21
Sources: ABS Census of Population and Housing
22. Diverse cultures
are driving skills
growth and can
create new
business
opportunities
The average education level
of newly arrived Australians
in FGOS is significantly
higher than the overall FGOS
population.
-5%
5%
15%
25%
35%
45%
Bachelor or higher Advanced Diploma
and Diploma Level
Certificate Level No qualification
Overseas arrivals Total population
Qualifications of recent arrivals, FGOS 2016
Sources: ABS Census of Population and Housing 22
23. Youth
unemployment
is a concern
Youth unemployment in
FGOS
15-19yo – 22.5% in 2016, up
from 18% in 2011
20-24yo – 12.4% in 2016, up
from 10% in 2006
Weak employment growth has impacted
youth more than any other age group
23
Sources: ABS Census of Population and Housing
25. Exploit middle
ring
agglomerations
Dandenong
66,000 jobs
25% high skill
Monash
103,000 jobs
37% high skill
Melb Airport
47,000 jobs
20% high skill
Expanded CBD
342,000 jobs
50% high skill
Source: ABS Census of Population and Housing
Employment (POW) by SA2
25
29. Major gap in
knowledge,
health/research
and cultural
assets
29
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
Hospital University Cultural Govt
Fast Growing Outer Suburbs Greater Capital Cities
Jobs per ‘000 population, 2016
Source: ABS Census of Population and Housing
30. Household size
trends suggest
we need to
rethink this
social
infrastructure
2.4
2.5
2.6
2.7
2.8
2.9
3
3.1
3.2
199119962001200620112016
FGOS Aust
Household size 1991-2016
Local Government Area 2011 2016 Change
City of Wyndham 2.90 3.03 0.13
City of Melton 2.96 3.02 0.06
Wollondilly Shire 2.94 2.99 0.05
City of Gosnells 2.76 2.81 0.05
City of Casey 3.01 3.06 0.05
Blacktown City 3.10 3.14 0.04
Liverpool City 3.15 3.20 0.04
The Hills Shire 3.10 3.15 0.04
Shire of Litchfield 2.75 2.79 0.04
Camden Council 3.03 3.07 0.04
City of Kwinana 2.63 2.67 0.03
City of Armadale 2.64 2.67 0.03
Shire of Serpentine-
Jarrahdale 2.89 2.92 0.02
Shire of Cardinia 2.80 2.82 0.02
City of Hume 3.06 3.08 0.02
Source: ABS Census of Population and Housing 30
32. Infrastructure
is not meeting
economic and
demographic
demand
FGOS contribution to Australia
Population = 35% of growth
Jobs: 25% of growth
Infrastructure: 13% of
investment
25.2%
34.8%
13.2%
0% 10% 20% 30% 40%
Share of Jobs
Growth
Share of Pop
Growth
Share of Asset
Growth
Metro - Fast Growing Outer Suburbs Regional Centre
Metro - elsewhere Metro CBD LGA*
Chart: Share of national growth by selected indicators, 2011-16
Note: Metro CBD LGA excludes Brisbane
When we exclude the FGOS from enjoying in the benefits
of agglomeration we must be going backwards.
Source: National Economics 32
36. Questions and discussion
What’s your story?
Retail to research
Skills are the new iron ore
Increasing the ideas per square metre
Where is the culture
Knowledge intensive infrastructure
36