Lower Hunter-based professional and information services jobs now outnumber those in the goods generation sectors of mining and manufacturing.
Australian Bureau of Statistics data shows the proportion of knowledge-producing jobs in Newcastle and Lake Macquarie steadily increased from about seven per cent to nine per cent between 1999 and 2023
At the same time, the portion of jobs in the goods generation sector dropped from about 14 per cent to nine per cent.
The trends are expected to continue.
On Thursday, the Herald reported that the female-dominated health care and social assistance sector was by far the largest employment industry in the Hunter with 54,833 workers, according to ABS data.
Next were construction (29,836), retail (29,148), education and training (27,243) and hospitality (23,507).
The mining sector was well down the list of employers with 14,943 workers.
Speaking at the Institute for Regional Future's Hunter Insight: The Geography of Jobs presentation on Thursday, institute director Professor Roberta Ryan said the Hunter's changing employment profile highlighted an urgent need to focus planning and investment towards building cross-sector human capital.
"The shift from manufacturing to mining after BHP's departure pulled the Hunter out of a short unemployment slump," Professor Ryan said.
"We are now looking for the next wave of opportunities as the resources sector transitions and evolves."
Health, defence and energy have been identified as traditional strengths that present new opportunities for growth in the region. However, developing the workforce within silos in these sectors would not deliver the number or types of jobs required in the long term, Professor Ryan said.
The Hunter's current workforce is built on the region's long-standing strengths in resources, manufacturing and 'knowledge hubs', which include medicine, defence and technical service innovation.
These are complemented by a strong services workforce.
Professor Ryan said a growing body of international research demonstrated that regions where the same workers can be employed across different sectors were well equipped for social and economic transition.
She said decision-makers across government and industry needed to move beyond sector-based thinking in the development of the Hunter's workforce.
"Historically, the approach to regional development and planning has been framed by developing sector-specialisations based around physical resources or assets," Professor Ryan said.
"In an environment where new opportunities emerge quickly and existing markets can decline with little warning, the region needs to prioritise building a workforce with transferable skills across sectors and developing human capital that is nimble, adaptable and resilient to change."
She suggested that a way forward for the Hunter was to lead in the establishment of an agreed framework of policy responses to building human capital that is designed to meet the particular needs of different parts of the region.
"The Hunter is unique: it is not a capital city, nor is it like any other region in Australia. This has made us a magnet to test new ideas," Professor Ryan said.
"We have the opportunity for the region to be a test bed for innovation that puts the development of human capital firmly in the driver's seat to develop a new economy."
The University of Newcastle this year introduced a work-integrated learning component into its undergraduate programs as part of an initiative designed to improve graduate employment outcomes.
A 2021 Australian Skills Commission report found that 75 per cent of employers looked for experience before considering an applicant, while 40 per cent of roles were given to someone known to the employer.
It is expected that more than 7000 students will complete professional experience placements each year.
