The impact of employment specialisation on regional labour market outcomes in Australia

This article examines the industry composition of employment across Statistical Divisions in Australia utilising census data from 2001 and 2006. We find some evidence to support the hypothesis that peripheral regions tend to have a higher level of employment specialisation than metropolitan centres, but there is little indication that employment specialisation, in general, grew over the period. From a policy perspective, we provide support for the findings of previous Australian researchers that higher levels of employment specialisation are associated with better labour market outcomes in a region, and that when policymakers assess different regional-development policies, they should give some consideration as to whether or not the implementation of their preferred policy will have an impact upon employment specialisation in the particular region.