Date: 1 Sep 2018
Source: The Sydney Morning Herald
Sydney is pulling away from the rest of NSW.
The labour productivity in the city has reached $93 per hour worked compared with $71 in regional NSW, new research shows. And that productivity gap has been widening.
Twenty years ago Sydney’s hourly labour productivity per worker was 22 per cent higher than in regional NSW but that had climbed to 31 per cent by last year, according to a report by consultancy firm SGS Economics and Planning.
Sydney’s healthy productivity growth has helped underpin the city’s strong economic performance over the past five years, including a robust jobs market.
But Sydney is not alone – the economic fortunes of big cities and their hinterlands have been diverging in many advanced economies. It’s a trend that poses a host of political, economic and social challenges as workers, including many new migrants, are drawn to big cities by good job prospects and high wages.