An interesting Australian article highlights something that has perhaps slipped under the radar of many – that a huge implication of economies in countries like New Zealand shifting away from manufacturing and more towards knowledge industries is a likely changing of the geography of employment. The Australian Federal Minister of Infrastructure and Transport, Anthony Albanese, notes that Australian cities are facing increasing competition from growing cities in Asia, while at the same time facing the aforementioned shift in employment types. Let’s pick up a few key paragraphs:
Albanese noted that Australian cities will continue to face competition from a growing number of larger cities in the region.
“That puts a major incentive in dealing with how we position ourselves in our increasingly urbanised and increasingly affluent region,” he said. “Our cities have to be more productive. Productivity isn’t everything, but in the long run it’s nearly everything.”
Albanese added that the changing nature of cities will mean more need for inner-urban medium density housing as work increasingly shifts away from outer urban areas toward city centres.
“In terms of economic functions, our cities are shrinking in on themselves,” he said. “The forces which drove the spread of our cities in the post-war period, predominately manufacturing, are being replaced by knowledge industries – the banking, legal, insurance and myriad of other business services.”
Albanese pointed out that the changes will continue to influence the shape of cities in Australia.
“Whereas manufacturing plants which are traditionally located on the city fringe or in industrial zones, the job-rich knowledge industries tend to concentrate in the heart of our cities,” he said. “As the State of Australian Cities reports, this trend is seeing more and more workers commuting into our city centres.”
There’s a bit of a myth (perhaps another one for our list) that Auckland’s city centre is somehow dying and becoming increasingly irrelevant as employment disperses wider and wider throughout the region. Furthermore, there are often quotes that only 13-15% of Auckland’s jobs are within the motorway ring that’s generally used to define the CBD. Yet as Matt showed in a recent post, the city centre and its fringe is actually still by absolutely miles the largest concentration of employment in Auckland. Furthermore, as shown in the map below, by far the greatest concentrations of employment – in terms of jobs per hectare, are in meshblocks located in the CBD:
There has long been debate between the Council and Central Government over the future projections for employment numbers in the city centre, which seems to be quite critical to how well the business case for the CRL stacks up. If we follow the trends that are increasingly seen in Australia – and which just seem pretty logical as our economy transitions more and more to a post-industrial state – then a reconcentration of employment downtown seems likely (and also incredibly desirable in terms of economic productivity). Which, of course, makes the case for CRL even more compelling.