The staggering number of jobs to be created in the Hunter over five years

The surge is fuelled by the region's 7.4 per cent employment growth rate, which is more than double the national average.

The findings come from KPMG's report on the nation's 12 "enterprising cities", which account for 10 million people and over 35 per cent of Australia's economy, and punch above their weight compared with the big capital centres of Sydney, Melbourne and Brisbane by offering better lifestyles, local amenities, and affordable housing.

KPMG urban economist Terry Rawnsley said Newcastle and the Hunter were big winners from the COVID period, with a horde of people relocating out of Sydney for the lifestyle and affordable housing.

The report shows broad-based population growth has occurred across all age groups, with the highest increases in the 30 to 39 and 0 to 19 age brackets which indicates new families moving into the Hunter.

"The people coming up had a different skill mix, there were more white collar professionals either shifting to Newcastle or still working in Sydney, while working-from-home in Newcastle," Mr Rawnsley said.

"It brought a new demographic - a lot of young families came in, pumping money into local businesses and supercharging the economy.

"Meanwhile the traditional strengths of the mining sector and heavy industry continued ticking along and doing well in the face of headwinds such as international competition and energy transition."

The additional 46,000 expected jobs over the next five years is on top of the 30,000 jobs the region has put on in the past three years.

Accommodation and food services (10,800 additional workers) and retail trade (10,500) were the fastest growing sectors, indicating the growing population was driving an increase in consumer spending.

Key infrastructure projects have played a significant role in the economic growth, including the expansion of Williamtown Airport, and the redevelopment of Maitland Hospital and expansions of the John Hunter Health and Innovation Precinct.

Several of the Hunter's business and community leaders have called for the state government to capitalise on the region's momentum by investing in more long-awaited infrastructure projects.

Mr Rawnsley said the report provides rock-solid data for organisations to use to make their case to the government.

"The last three years, growth has gone to a different level," he said.

"Government's aren't known for their nimbleness. It takes time for them to recognise the momentum there, and where the bottlenecks are."

The Newcastle-Hunter Region has a strong pipeline of manufacturing and renewables projects that will continue to bolster growth over the coming years.

But the report made it clear the Hunter has grown beyond its historical heavy industry and energy production base, pointing out the 65,800-strong healthcare workforce was by far the region's largest sector.

"Newcastle is a diverse city undergoing structural adjustment where innovative manufacturing persists... tourism is flourishing, leveraging beaches and a well-established wine and food scene," the report stated.

"An increasingly diverse business ecosystem and its ability to attract skilled labour are making the region stand out as an attractive investment destination in Australia."

But while business is booming, the housing market has not kept up.

Dwelling approvals have steadily declined over the past three years, dropping by almost 1000 houses from a peak of 5570 in 2021 to only 4780 approved last year.

"Getting a job in the Hunter is the easy part, but people are struggling to find somewhere to live," Mr Rawnsley said.

However, Newcastle and the Hunter's housing market did not drop off as much as other enterprising cities, which include Wollongong, Canberra, Adelaide, Perth, Darwin, Gold Coast, Western Sydney, Townsville, Cairns, Hobart and Geelong.

"These reports show there isn't no national economy, there are 30 to 40 sub-regional economies," Mr Rawnsley said.

Hunter Means Business is a weekly column proudly flying the flag for the region's economic sector, published every Tuesday. Got a tip? Email jamieson.murphy@newcastleherald.com.au