In great news for our state, South Australia’s economy has been named the best performing in the nation, according to a super influential quarterly report. We break down what that means for South Australians – both now and in the future.
First things first – what’s the CommSec State of the States report?
The State of the States report is released quarterly by CommSec, an arm of the Commonwealth Bank, and is keenly awaited by business leaders, policymakers and investors, who use it to inform their decisions about where to invest, expand operations and allocate resources.
The report provides an economic snapshot of each state and territory, then compares their performance based on eight key indicators: economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and dwelling commencements.
SA Great!
This is the first time South Australia has ranked number one in the report’s 14-year history. SA took out the top spot on four of the report’s eight key economic indicators: real economic growth, unemployment, construction work and “dwelling starts” (new homes).
After climbing to third this time last year and second place last quarter, this month South Australia leaped ahead of Victoria to take the lead. Victoria is now equal second with NSW.
The report shows South Australia’s strong construction activity and robust job market are the key drivers fuelling our economic success. This is especially good news for students, job hunters and people looking to buy their first home. But it’s also great news for all South Aussies since it signals our economy is on a roll.
More good economic news
This report is the latest in a series of nation-leading economic results for South Australia, including:
- The strongest economic growth of any state in the past year – up 3.8 per cent
- The strongest export growth of any state in the past year – up 8.5 per cent
- ANZ Stateometer labelling SA’s economy the best performing in the nation
Significant government investment in housing, infrastructure and thriving exports have been critical factors driving our state’s economic activity to “best in the nation” status – and the reason our unemployment rate is at near record lows. Let’s take a closer look at these important areas of our economy.
Housing – a key to economic growth
There’s no doubt Australia’s housing market is tough, but the State Government sure is doing its bit to alleviate the situation for first home buyers – we’re talking grants, the abolishment of stamp duty for eligible first home buyers, massive land releases and low deposit loans from HomeStart. Read about all the support on offer for first home buyers in our handy guide.
For those doing it especially tough, the SA Government is investing in a heap of affordable housing. For more details and eligibility, click here.
“Game changer” infrastructure
With major housing development comes the need for associated infrastructure, which the state government is committed to providing.
Last year it established the Housing Infrastructure Planning and Development Unit, which has been labelled a “game changer” by the Urban Development Institute of Australia. The unit ensures the liveability and longevity of newly built communities by ensuring they are supplied with necessary electricity, water and sewage, plus public infrastructure such as roads and schools.
As a bonus, all that major infrastructure work provides new jobs in sectors like construction and planning. Other big construction projects creating jobs now and into the future include SA’s new hydrogen plant and the shipyards needed for SA’s major defence projects, including nuclear-powered submarines.
Low unemployment = high opportunity
SA’s unemployment rate hit a record low of 3.6 per cent in recent months, and although the rate has edged up a little in December, it’s showing there are plenty of jobs to go around. That means not only are more people able to work to provide for themselves and their families, but a flow-on effect in the movement of goods and services – more people with paychecks equals more South Aussies spending money.
In order to create jobs and lower unemployment, the state government has fought to bring industries to South Australia that harness the talent of skilled South Australians. By funding the growth industries of the future, the government has vastly expanded the jobs on offer in sectors such as space, defence, health, technology and agribusiness. If you’re interested in drilling down to the nitty gritty of what low employment means for our economy, we’ve got all the details here.
The importance of exports
The state’s exports have reached record levels, growing to $17.9 billion for the 12 months ending December 2023, topping the nation for the sixth consecutive month, providing a key driver for South Australia’s economy. To put the figures in context, South Australia and Western Australia were the only two states with any positive growth in total exports in 2023, bucking the national downturn.
Future-proofing our economy
Now that the state government has attracted investment to drive growth in the key industries of the future, it’s vital that South Australians are up-skilled to allow them to take advantage of the new career paths these will offer.
That’s why educating South Australians for these future jobs is already underway on a large scale. Five new technical colleges will set young people up for an early and easy entry into key sectors including manufacturing, engineering, early childhood, education, health and social care. The government has committed $208.8 million to establish the five technical colleges, which will be available to students in years 10, 11 and 12 as part of the public education system.
Meanwhile, the state government has invested in revitalising TAFE SA – and crucially introduced fee-free places. More than 10,600 TAFE places were used for fee-free study at TAFE SA in 2023, and enrolments overall were up 65 per cent compared to two years ago. This will create a new generation of skilled workers in priority areas including health, infrastructure, defence and universal 3-year-old preschool.
A university for future growth
Then there’s the new Adelaide University set to open in 2026. This massive milestone for our state’s education sector is an amalgamation between the University of Adelaide and University of South Australia to “create something better together”.
The merger will mean overhauling existing programs to match them to future workplace needs. This will ensure the new institution has the most contemporary curriculum in the country – sure to make its ranking among the global top 100 universities consistently high.
Download CommSec’s State of the States report here, and find out more about how the South Australian government is supporting our businesses and industries’ success here.
