Future shape of the NSW economy - chapter 2

Our economic future

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2021-22 NSW Intergenerational Report, chapter 2 - economy

[speaker]

Productivity growth is critical to lifting living standards for future generations. By 2061 it is expected that the NSW economy will more than double in size to 1.4 trillion dollars, even after impacts from natural disasters. Employment will be increasingly concentrated in the services sector and the full-time wage will reach $139 000. While overall workforce participation is projected to decline as the population ages, working age women's participation is projected to be higher and 1 in 5 people aged 65 and over are projected to participate in the workforce by 2061.

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In 2060-61, NSW is projected to have a $1.4 trillion economy. Average full-time wages are projected to grow to $139,000 per year and per capita incomes will be 59% higher than today. We will increasingly rely on productivity to drive economic growth, as the population grows more slowly, and ageing lowers the participation rate. 

More working age women and people over 65 will be in the workforce compared with today, and more of us will work part-time. Our workforce will be more highly skilled and will increasingly work in the social and business services sectors. Securing our future prosperity will rely on the government, businesses and workers working together to boost productivity growth.

In 2060-2061

Insights and opportunities

• NSW is projected to have a $1.4 trillion dollar economy by 2060-61.
• Full time wages are projected to grow from $86,000 in 2018-19 to $139,000 in 2060-61.
• The participation rate is projected to decline from 65.3% in 2018-19 to 61.6% in 2060-61, as the population ages.
• Productivity is expected to grow by 1.2% per year, and this will account for the majority of economic growth.
• Employment is projected to grow fastest in business services and social services.
• The jobs of the future will require a more highly skilled workforce, and the skills mix will shift away from manual and routine tasks towards more non-routine and analytical roles.