National Institute of Economic and Industry Research
If the reader is not familiar with Australia’s annual State of the Regions reports (SORs), the reports divide Australia into 67 regions, describing each of these as well as benchmarking regions with each other in terms of their economic performance across a series of key economic indicators. Various agglomerations of these regions are also analysed and include a series of seven region types, which display similar characteristics in terms of their economic structure and development, each region type distinct from the other. Each of the annual SORs provide data for each region and more recently, each region type.
The analysis provided in the SORs gives important insights for all levels of government and for industry about how we understand Australia’s regions and build their economic futures. What are the risks, where are the opportunities and so on?
Here we look at a snapshot of one of the 67 SOR regions, the Sydney Mid West SOR.
The Sydney Mid West SOR, classified as a SOR Metro Outer region type, includes parts of Canterbury-Bankstown, Cumberland, Fairfield, Parramatta, and Strathfield local government areas, including the key centres of Revesby, Bankstown, Auburn, and Merrylands. This region marks the transitional zone between Sydney’s inner-city and its more suburban western fringes.
Historically, these suburbs developed around robust manufacturing industries, leveraging the region’s flat terrain, railways, and road infrastructure. From the post-WWII boom until the early 1970s, manufacturing drove growth and provided steady working-class employment. However, with the exhaustion of available industrial land, economic transformation led to a gradual decline in manufacturing and the emergence of new service- oriented industries.
While grappling with the legacy of manufacturing decline, the region is undergoing strong growth in health, social assistance, and service industries, bolstered by its role as a diverse reception zone for new Australians. Ongoing investment in transport and urban renewal will remain central to the region’s future prosperity and social cohesion.
As of 2024, the Sydney Mid West SOR region’s population was at 561,820, reflecting an average annual growth rate of 0.51 per cent over the period 2019 to 2024.
Demographically, the region is characterised by a substantial proportion of residents aged between 30 and 59 years (39.8 per cent), as well as a significant cohort aged 0-19 years (23.7 per cent). In terms of housing, flats account for 37.4 per cent of the total dwelling stock in the region.
From an economic perspective, average household wealth in 2024 is estimated at approximately $1.12 million. Productivity, measured as Gross Regional Product (GRP) per hour worked, is $94. Although this figure has declined in the period following COVID-19, it remains above the Metro Outer average. Between 2019 and 2024 the region’s GRP grew at an average annual rate of 0.68 per cent.
The Sydney Mid West SOR remains one of Sydney’s most ethnically diverse regions, continually serving as a primary reception area for new migrants seeking housing and employment opportunities.
The Sydney metropolitan area as defined comprises nine regions: four inner metropolitan (Sydney Central, North, East and Inner West) and five outer metropolitan (South, Mid-West, Parramatta, Outer West and Outer South West). It excludes the lower Blue Mountains and Camden and is therefore smaller than the continuous built-up area as defined by the ABS. Sydney Metro has over five million residents and is Australia’s principal business, financial and education centre when measured by GRP. The region comprises a complex, knowledge-driven industry structure, robust employment opportunities, and a shifting occupational landscape increasingly focused on high-skill, high-productivity work. However, the region faces considerable challenges, including housing affordability and supply.
The Sydney Mid West SOR is one of the 9 Sydney SOR regions, its economy marked by a shift from traditional manufacturing to a diversified industry base, with health care and social assistance, retail, education, construction, and logistics identified as key sectors.
The legacy of its industrial history remains in the presence of food manufacturing, light engineering, and warehousing; however, most new growth comes from the services sector. Major commercial hubs such as Bankstown and Auburn host a mix of retail, finance, professional services, and government offices, supplemented by large retail precincts and local markets. Manufacturing is now concentrated in smaller, niche operators, often catering to the needs of the multicultural population, including specialty food producers and importers.
The region’s strategic location along major road and rail corridors (including the M4 and the Bankstown and Parramatta rail lines) supports a significant transport and logistics sector, serving as a conduit for goods to and from surrounding business parks and Sydney markets.
Construction activity is robust, both residential and commercial, reflecting ongoing population growth and urban renewal projects.
Jobs and Occupations reflecting its industry mix, Sydney Mid West SOR has a diverse labour market spanning blue-collar and white-collar occupations. Key employing industries include health care and social assistance, retail trade, education and training, and transport and warehousing. Frontline roles such as aged care workers, disability carers, nurses, retail assistants, delivery drivers, warehouse staff, construction workers, and educators are prominent. There is also a notable concentration of small business entrepreneurs, particularly in retail and personal services, reflecting the region’s migrant business networks.
Unemployment rates tend to be higher than the Sydney average, linked to structural changes in traditional industries and barriers faced by new migrants (such as recognition of overseas qualifications and English proficiency). However, ongoing population growth and urban renewal are driving robust jobs growth in health, construction, and education sectors and the SOR has approved its rankings in recent years.
Residents of the SOR typically work in the Private Local Services, Health, Centralised Office Services, Manufacturing/Wholesaling, and Utilities and Transport sectors. The most common occupations among residents are Professionals, Technicians and Trades, Clerical and Administrative roles, Community and Personal Service workers, and Labourers.
For employment in businesses located in the Sydney Mid West SOR, the top five industries are Private Local Services, Manufacturing/Wholesaling, Health, Utilities and Transport, and Construction. The primary occupational groups in these industries are Professionals, Technicians and Trades, Clerical and Administrative workers, Machinery Operators and Drivers, and Managers.
The health care and social assistance sector is now one of the largest employers in the Sydney Mid West SOR, a trend mirrored in rising demand for disability and community care services. The National Disability Insurance Scheme (NDIS) uptake has been strong, reflecting both the large population and the diversity of need within local communities, including high proportions of culturally and linguistically diverse (CALD) clients. Service providers, ranging from large not-for-profits to smaller, culturally specialised agencies, have expanded in response to demand for plan management, therapy, personal care, supported accommodation, and social participation services. Employment growth in NDIS-funded roles continues, providing new job pathways for residents, particularly women and culturally diverse employees.
Examining the sectoral shares of total emissions (excluding Land-use), purchased electricity remained the largest contributor in 2023-24 at 33.4 per cent, but its share has declined since 2004-05. Transport emissions accounted for 24.4 per cent in 2023-24, up considerably from 15.7 per cent in 2004-05, indicating a shift in the emissions profile of the region. Industrial processes and product use comprised 21.5 per cent of total emissions, with relatively stable shares over time. Other fuel combustion, natural gas, fugitive emissions, agriculture and waste each made up smaller proportions, at 7.0 per cent, 5.5 per cent, 2.4 per cent, 1.4 per cent, and 4.4 per cent respectively. Despite a minor negative contribution from Land-use, Land-use Change and Forestry representing a net sink, most of the emissions stem from energy use and industrial activity, highlighting key areas for targeted emissions reduction efforts.
All the annual SORs, covering the period 1998 to 2025, can be downloaded free of charge from the NIEIR website as NIEIR’s contribution to the public good. In 2025, there are two SOR reports, the main report and a smaller report that ranks the SORs 67 regions. The latest reports were published in November 2025.
