Structural Economic Changes in Parramatta City between 2001 and 2011 - Research Paper Example

Structural Economic Changes in Parramatta City between 2001 and 2011 Executive Summary Parramatta City is one of the key cities in the economic growth of Sydney and New South Wales. Significant structural change has taken place between 2001 and 2011. A shift-share data analysis of Parramatta city indicates that the change percentage in Parramatta industries is higher compared to that of the nation especially in mining, electricity, gas and water services and retail trade industries. In addition, the change percentage is also higher in technical, scientific, and professional services; administrative and support services; rental, hiring and real estate services; health and social assistance; and art and recreation services. There is significant growth in employment in these sectors as well as materialization of a vibrant 24 hour inner-city economy. This report recommends increasing the capacity of local firms and industry to grow, specialize and employ; educating, retaining and attracting quality labor; prioritizing infrastructure development. In addition, increasing funds for developing the transport infrastructure and gaining support from all government tiers is also important. These strategies will help to develop the economy of Parramatta and the larger Western Sydney. Introduction This report focuses on the structural economic changes of Parramatta City that has taken place from 2001 to 2011 and makes various recommendations on the economic weaknesses and strengths identified. The findings, analysis, and recommendations are based on the Shift-share analysis undertaken throughout the computer workshops. The shift-share data is based on industries of employment of persons living in Parramatta City relative to the national data. Academic literature will also be used to provide background and justifications the findings and recommendations. The report will report on the town population as well as their occupations. Literature Review About Parramatta Parramatta is the leading regional city as well as the central connecting point for Sydney (Parramatta City Council 2011). It is the gateway to Western Sydney and one of the six main regional cities important to the economic growth of New South Wales. It is located 24km from Sydney central business district. As the geographical, cultural, and commercial capital of Western Sydney, the city is the six largest in Australia and second largest in Sydney. The city of Parramatta comprises of four interconnected activity centers that are predominantly high value adding industry enabling the city to create more jobs (Parramatta City Council 2011). It also has a well develop transport infrastructure system that enables it to play an important regional role in the transport of millions of residents each day via its integrated network of road, rail, ferry, and bus services. It centrally located, and this means that the city is an important center for financial, legal, medical, professional, and educational services (Parramatta City Council 2011). It has more than 174,000 residents. In 2006, the city of Parramatta provided employment for 79,360 people and was ranked second in Sydney (Australian Bureau of Statistics 2006). The economic development strategy of the city is aligned with the Metropolitan plan emphasis on the city CBD and Westmead; Camellia and Rydalmere are regarded as the two strategic centers as they are potential jobs-rich area and residents can access the CBD core within ten minutes (Parramatta City Council 2011). The four areas well generate large numbers of high-skilled knowledge-based jobs concentrated in various sectors. Parramatta’s vision entails being the driving force as well as centre of most important economic region in Australia; a centre of excellence in enterprise, education, and research and a vibrant home for different communities to flourish. The city seeks to be the driving force behind new wealth generation in Western Sydney and to be center of high-value adding employment. Methods The study on structural economic changes of Parramatta City from 2001 and 2011 was undertaken using the shift-share analysis method. The shift-share data is based on the place of residence of people living in Parramatta. Shift-share analysis compares region economic changes (for instance, growth or decline) for a chosen period to economic changes of a chosen standard region (Wang & Hofe 2007). The economic-based evaluates previous economic growth of an industry between two points in time. It is a more dynamic approach since it employs data for two points in time. This method is a standard regional analysis methodology that seeks to determine how much economic growth has resulted from unique regional growth and how much has resulted from national trends (Wang & Hofe 2007). The method provides the solution for why employment is declining or growing in a regional occupation, industry, or cluster. The underlying idea in using this method is that regional industry decline or growth may have various sources; some may reflect national economic trends whereas some may be purely regional (Wang & Hofe 2007). Under this methodology, the industry sector change in a region is broken down into three individual factors; regional growth share, industry mix share, and national growth share. Focusing on regional output or employment by industry sector, this method had been largely used to determine the performance of a region relative to other regions and to evaluate the relative significance of an industry sector in a region. It readily identifies the industrial sector problems in a region that needs more detailed attention (Wang & Hofe 2007). This method was appropriate for the Parramatta city as it enabled assessment of the overall performance of the city relative to the greater Sydney Metropolitan region from 2001 to 2011. The study findings were also based on academic literature and theoretical workshops. Results The table below shows the national data of persons in various industries in 2001 and 2011 Table 1: National data of number of Persons in Various sectors (2001 versus 2011) Sector 2001 2011 Agriculture, forestry and fishing 11,354 8049 Mining 3443 7050 Manufacturing 202, 971 169,048 Electricity gas and water services 15010 18283 Construction 119, 408 141,200 Wholesale trade 99,279 100, 287 Retail Trade 183, 864 197, 462 Accommodation and food services 109, 818 125, 307 Transport, postal and warehousing 93,664 105,354 Information, media and telecommunications 66,289 58,759 Financial and insurance services 106,725 128,566 Rental, hiring and real estate services 34,697 35,636 Professional, scientific and technical services 160, 797 190,027 Administrative and support services 65, 209 69, 560 Public administration and safety 87,024 114, 727 Education and training 123, 523 158, 266 Health and social assistance 157, 895 220,877 Arts and recreation services 25,500 32,496 Others Services 72,396 73,867 Inadequately described (not stated) 42,026 51,008 Table 2: Structural Data: Number of persons in various sectors in Parramatta City (2001 versus 2011) Sector 2001 2011 Agriculture, forestry and fishing 437 280 Mining 73 222 Manufacturing 19,817 17,320 Electricity gas and water services 1150 1522 Construction 9891 12,183 Wholesale trade 9,708 10,290 Retail Trade 14,317 17,438 Accommodation and food services 8,310 10,848 Transport, postal and warehousing 7,699 9,451 Information, media and telecommunications 4,324 4,200 Financial and insurance services 8,195 10,643 Rental, hiring and real estate services 2,034 2,274 Professional, scientific and technical services 9,468 12,712 Administrative and support services 5,010 6,099 Public administration and safety 6,502 8,966 Education and training 8,063 10, 481 Health and social assistance 12,371 18, 858 Arts and recreation services 1,374 1,980 Others Services 6,363 6,186 Inadequately described (not stated) 4,053 5,463 Table 3: % Change in industry National data Versus Parramatta Industry % Change (National) (from 2001 to 2011) % Change (Parramatta) (from 2001 to 2011) Agriculture, forestry and fishing -0.29 -0.36 Mining 1.05 2.04 Manufacturing -0.17 -0.13 Electricity gas and water services 0.22 0.32 Construction 0.18 0.23 Wholesale trade 0.01 0.06 Retail Trade 0.07 0.22 Accommodation and food services 0.14 0.31 Transport, postal and warehousing 0.12 0.23 Information, media and telecommunications -0.11 -0.03 Financial and insurance services 0.20 0.30 Rental, hiring and real estate services 0.03 0.12 Professional, scientific and technical services 0.18 0.34 Administrative and support services 0.07 0.22 Public administration and safety 0.32 0.38 Education and training 0.28 0.30 Health and social assistance 0.40 0.52 Arts and recreation services 0.27 0.44 Others Services 0.02 -0.03 Inadequately described (not stated) 0.21 0.35 Discussion and Conclusion From the national data, the persons employed in the Agriculture, forestry and fishing, declined from 11,354 to 8049 whereas in Parramatta it decreased from 437 to 280. In the mining sector, the number rose from 3443 to 7050 nationally whereas in Parramatta it rose from 73 to 222. Manufacturing recorded a decrease from 202,971 to 169,048 nationally whereas, in Parramatta the number declined from 19, 187 to 17,320. Electricity gas and water services recorded an increase from 15,010 to 18,283 nationally whereas Parramatta also recorded an increase from 1150 to 1522. Nationally, the construction industry recorded an increase from 119,408 to 141,200; in Parramatta, the number also increased from 9,891 to 12, 183. The number of residents in Wholesale trade increased from 99,279 to 100, 287; in Parramatta the number rose from 9,708 to 10, 290. In retail trade, the number of persons increased from 183,864 to 197,462 nationally whereas in Parramatta, the number increased from 14, 317 to 17,438. In accommodation and food services, the number rose from 109, 818 to 125, 307 nationally whereas in Parramatta it increased from 8,310 to 10, 848. In transport, postal and warehousing the number increased from 93,664 to 105,354 whereas in Parramatta it increased from 7,699 to 9,451. In information, media and telecommunications, the number reduced from 66, 289 to 58,759 whereas in Parramatta it reduced from 4,324 to 4,200. Those in financial and insurance services increased from 106,725 to 128, 566 nationally whereas in Parramatta they increased from 8,195 to 10, 643. Those in rental, hiring and real estate services increased from 34, 697 to 35,636 nationally; in Parramatta they increased from 2,034 to 2,274. Those in professional, scientific and technical services increased from 160, 797 to 190,027 nationally whereas in Parramatta the number increased from 9,468 to 12,712. Persons in administrative and support services increased from 65, 209 to 69, 560 nationally whereas in Parramatta it increased from 5,010 to 6,099. In public administration and safety the number rose from 87,024 to 114,727 whereas in Parramatta increased from 6,502 to 8,966; whereas those in education and training nationally increased from 123, 523 to 158,266 nationally and Parramatta from 8,063 to 10, 481. Persons in healthcare and social assistance sector increased from 157, 895 to 220,877 nationally whereas in Parramatta they increased from 12,371 to 18,858. In arts and recreation services, the number increased from 25,500 to 32,496 nationally whereas in Parramatta, it increased from 1,374 to 1,980. From this analysis, it is evident that the increase or decrease experience in all industries nationwide and in Parramatta is comparable; the changes in Parramatta reflect nationwide sector changes. Nevertheless, the change percentage in Parramatta is higher relative to that of the nation especially in mining; electricity; gas and water services; accommodation and food services; and retail trade. In addition, the change percentage also is higher in rental, hiring and real estate services; professional, scientific and technical services; administrative and support services; art and recreation services and health and social assistance. This shows that Parramatta economic basis is dominated by and insurance and finance sectors as well as strong growth in the sought after technical/scientific/professional sector. In 2011, the total employed residents in Parramatta was 74, 157 (Australian Bureau of Statistics 2011). Those who lived and worked within the city were 16, 481(22.2%); those who lived in the area and worked in the same SLA was 9,909 (13.4%) whereas those who lived in the area and worked in a different SLA was 6,572 (8.9%). The residents who lived in Parramatta but worked outside was 47, 643 (64.2%) whereas the work location of 10, 033 (13.5%) was not known. The residents use different modes of transport to get to work such as the bus, train ferry or tram, taxi, car, truck, motorbike, bicycle whereas others walk to work (Australian Bureau of Statistics 2011; City of Parramatta 2011). The transport interchange in Parramatta brings more than 50,000 individuals into the city on an everyday basis efficiently and quickly (Elite English Institute 2010). The high-value sectors in the city-finance, insurance, retail, business or property services and ICT drive the economic performance and this explains the increase in number of those employed in these sectors. There is a considerable presence of education, retail, accommodation, food, medical health, and construction industries that point to the materialization of an active 24-hour inner-city vibrant economy. Recommendations The increase in employment in points to materialization of an active 24-hour inner-city economy; this will necessitate various changes. The capacity of local firms and industry to grow, specialize and employ should be developed. There is also need to educate, retain, and attract quality labor with skills that are in line with the needs of the local industry. There is a need to prioritize infrastructure development to ensure that the city caters for the increasing population and cements the city among the best in the world for employment, economic activity, cultural diversity, creativity, and sustainability. There is a need for increased funds for developing the transport infrastructure to ensure ease of transport within and from the city. Parramatta has also become an epicenter for economic activities in Western Sydney and at the demographic and geographic center of the greater Sydney metropolitan region, has emerged as a natural candidate for the second central business district. As a result, it should be given support by all government tiers. It requires political benefits, attention, civil structures, infrastructures, and frameworks, which are given to other capital CBDs in Australia. There is also need for a special partnership between the local, state, and federal government as well as the private sector. There would be a new model for infrastructure funding, urban planning, and community building and governance. There should also be considerable investments in community branding and programs. Local pride and community confidence are important constituents of the plan to strengthen Parramatta and the larger Western Sydney. Reference List Australian Bureau of Statistics 2006, Census of Population and Housing. Australian Bureau of Statistics 2011, Census of Population and Housing. City of Parramatta 2011, Method of travel to work, Viewed October 14, 2014, http://profile.id.com.au/parramatta/travel-to-work Elite English Institute 2010, Your City, Parramatta, viewed October 14, 2014, http://www.eei.edu.au/index.php/Your_City_Parramatta Parramatta City Council 2011, Parramatta economic development strategy 2011-2016, viewed October 14, 2014, http://www.parracity.nsw.gov.au/__data/assets/pdf_file/0008/96389/Economic_Develop ment_Strategy_2011-2016.pdf Wang, X & Hofe, R 2007, Research methods in urban and regional planning, Springer-Verlag, Berlin Heidelberg. Read More