Read The Times Australia

Daily Bulletin

Commuters help regions tap into city-driven growth

  • Written by: Todd Denham, PhD Candidate, School of Global, Urban & Social Studies, RMIT University

There is a strong geographic element to the transitions in the Australian economy that our prime minister so frequently refers to. Generally, the old economy, based on manufacturing, mining and agriculture, provided employment and opportunity in regional Australia, whereas the new jobs in knowledge-intensive industries are predominantly created in the centre of our largest cities.

The federal government’s recent Smart Cities Plan states:

Australia’s growth as a knowledge-based economy, and the prosperity this offers, goes hand in hand with the growth of our cities and the regions surrounding them.

But how does this growth in city-centric industries translate to regional growth? Commuting may provide the answer.

That people travelling from regional areas to work in cities may distribute both financial and population growth was first proposed by Gunnar Myrdal in 1963. This applies particularly when this commuting is associated with the relocation of households from the cities.

image Australia’s latest high-speed rail proposal envisages commuter-driven regional development. spamlian/flickr, CC BY

More recently, the CLARA proposal bases regional development on high-speed city rail access and attracting commuters to new cities between Sydney and Melbourne.

In Victoria, the flight of city dwellers to picturesque regional cities and towns has received regular media coverage over the past decade. An example is the Northcote North phenomenon: 2006 Census data indicated most of the new residents of Castlemaine had relocated from Melbourne’s inner north.

Rise of the long-distance commuter

Census data also indicate that a significant number of these metropolitan escapees work in Melbourne. In Geelong, 2011 Census data show that more than 11,000 residents of the regional city travelled to work in Melbourne. That was nearly 13% of the city’s resident workforce.

This growth in commuting has occurred across Australia. Wollongong Lord Mayor Gordon Bradbery said it’s no longer a steel city but “a lifestyle city” when proposing that Sydney commuters may help offset continued job losses at the local steel plant. He said more than 20,000 of the city’s residents commute to the New South Wales capital each day.

For cities like Wollongong and Geelong, commuting may provide important economic benefits as their traditional industrial strengths decline and even close.

The increase in regional-urban commuting can be seen as not just the result of the increase in well-paid employment towards the centre of our larger cities. Rising housing costs have also played a part.

In a recent interview, a new resident of Torquay said that, for similar prices, it was a choice between the beachside town and a new housing development on the outskirts of Melbourne. Other reasons for regional relocation include friends and family, rural amenity and work arrangements for other household members, but metropolitan housing costs appear to be a significant factor.

What do regions get out of this?

Regional-urban commuters’ access to well-paid employment is an important factor in spreading economic benefits. For example, about 30% of Geelong residents who earned more than $2,000 per week in 2011 worked in Melbourne.

It is also important to note that, in 2011, more than 50% of the Victorian regional-urban commuters had changed their place of residence in the preceding five years: people are moving to commute and bringing higher incomes and families with them. There is evidence to suggest that this additional income may lead to higher regional employment in retail and service industries.

image When commuters tire of the daily travel, that too can have benefits for regional centres. Jesse Marlow/AAP

However, research indicates that many people do not continue long-distance commuting for more than a few years. This can be attributed to the links between long-distance commuting and poor physical and mental health, family problems and reduced community engagement.

Economists suggest that when deciding to commute long distances, people are not good at evaluating the non-pecuniary costs of commuting and the higher wages associated with commuting do not fully compensate for these costs.

Regional-urban commuters are more likely to work in the growing knowledge-based industries than their regional counterparts, in the census categories information, media and telecommunications; financial and insurance services; and professional, scientific and technical services.

When commuters tire of the travel, should they continue to live regionally and seek local work, this may be more significant for regional growth than the impact of the additional income. Some of these people may start new businesses closer to home, or provide a labour pool for other businesses in the area.

A survey is under way asking regional-urban commuters about their work and considerations of change. Preliminary results indicate that the main reason people start regional-urban commuting is that their work is not available where they live. Many would work locally if they could.

The tendency for commuters to find or create local employment as they tire of the time spent in transit is central to understanding how regions can grow through interactions with larger cities.

You can find project updates and the commuter survey here.

Authors: Todd Denham, PhD Candidate, School of Global, Urban & Social Studies, RMIT University

Read more http://theconversation.com/commuters-help-regions-tap-into-city-driven-growth-63097

Business News

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

What Businesses Can Do to Make Sustainability More Practical Day to Day

Sustainability can sound like a huge corporate project, something tied to annual reports, long-term ...

The Hidden Logistics Behind a Smooth-Running Construction Site

A construction site can look chaotic from the outside. There are machines moving in different direct...

When a Temporary Work Arrangement Starts Looking More Permanent

A lot can change once someone has spent a few years working in the same place. What began as a fixed...

The Real Cost of Launching a Food, Beverage or Supplement Brand in Australia

"How much will it cost to manufacture my product?" is usually the first question a founder asks, a...

Why Aussie Car Owners Are Switching to Paint Protection Film Over Traditional Waxing

For decades, a tin of carnauba wax and a Sunday afternoon were the standard formula for keeping a ...

How Wide Should Running Shoes Be? Signs Your Shoes Are Too Narrow

Running shoes should be wide enough for the forefoot and toes to sit naturally under load, but not...

Trail Running Shoes vs Hiking Shoes: Which Is Better for Australian Trails?

Australia does not offer one neat definition of a “trail.” A weekend walk might mean a hard-packed...

Architectural Window Shading: Solutions for Triangle Blinds, Raked Glazing, and High Ceilings

Mastering Light and Privacy with Specialized Window Coverings Modern architectural de...

From Suburban Streets to Modern Events: Why Australians Still Love the Ice Cream Truck

Did you know Australia consistently ranks among the world's highest ice cream-consuming countries? ...