Mixed Signals for Bendigo’s Economy as Transition Brings Uneven Impact on Workers

The City of Greater Bendigo recorded a Gross Regional Product of approximately $10.415 billion in 2024, securing its position as Victoria’s third-largest regional economy, according to official council figures.[1][13] Yet beneath this headline figure, economic shifts are altering the landscape for the region’s workforce and business community.

As of August 2025, Bendigo’s employment region supported around 82,000 workers with the largest employment sectors being Health Care and Social Assistance, Retail Trade, Construction, Manufacturing, and Education.[12] These industries are intrinsic to Bendigo’s identity and its economic resilience, but recent trends show significant changes that ripple through local communities.

Why This Matters Now

Bendigo’s economy is in a notable transition. Historically anchored in manufacturing and mining, the region is realigning towards services and micro-enterprise growth. Over the past two years, micro-businesses employing between one and four people have increased by 2.3%, signalling entrepreneurial vitality at a small-scale level.[6] Yet, the prominence of Health Care and Social Assistance as the largest employer comes with caveats; this sector experienced a year-on-year decline of 14.9% in employment to August 2025.[1][12]

In practical terms, this means some residents have seen job losses or shifts in job security, affecting household incomes and spending patterns. The decline in health care jobs contrasts with the endurance of other sectors such as retail and construction, pointing to an economy grappling with evolving demand and workforce needs.

Local Perspectives in Context

Bendigo’s status as a UNESCO City of Gastronomy underlines the importance of food production to the local economy, supported by more than 120 wineries and breweries, alongside Victoria’s largest gold mine still operational in the area.[4] Industries linked to food and wine contribute not just to output but to tourism and local brand identity. For many residents, these sectors provide part-time and full-time employment options, often in smaller family-run businesses.

Meanwhile, the ongoing economic shift away from traditional manufacturing affects workers who have spent careers in that sector. Local anecdotal evidence and community reports suggest a mixture of optimism and uncertainty among workers adapting to service-oriented roles or entrepreneurial ventures.[3] Those employed in construction and education sectors continue to anchor parts of the workforce, reflecting ongoing infrastructure investment and Treaty-aligned educational initiatives within the region.

Evidence and Implications

The 14.9% drop in Health Care employment is a clear marker: from one year to the next, about 1 in 7 health care jobs were lost or restructured.[1][12] With health care accounting for 17.9% of total employment locally, these downsizing figures affect roughly 14,678 workers out of 82,000 employed. This contraction is juxtaposed with gains in micro-business enterprises and sectors like retail and construction, which have shown relative stability or growth.[6][12]

Unemployment data as of late 2023 placed the local rate around 3.4 to 3.5%, considerably lower than the Victorian average of 5.8%, indicating that despite job shifts or losses in some sectors, overall employment remains strong.[6] However, the underlying service-oriented jobs might differ in pay and security from legacy manufacturing roles, raising questions about the quality of employment in the economic transition phase.

Population growth in Greater Bendigo, forecast at 1.7% per year to reach 172,000 by 2046, suggests continuing demand for diverse services but also increased pressure on infrastructure and employment sectors to adapt.[6] Council and regional bodies face the challenge of supporting this transition equitably.

Looking Ahead: Navigating Change

For Bendigo residents, the evolving economy means ongoing adaptation. Existing workers in contracting sectors like health care face retraining or relocation prospects, while expanding services and micro-business growth present opportunities for entrepreneurship backed by local and state programs.

Economic development efforts might focus on leveraging Bendigo’s UNESCO City of Gastronomy status alongside tourism, education, and infrastructure investments to bolster service industries and small business support. Sustained focus on upskilling and training, especially within growing industries, will be key to managing job displacement.

In this phase, community members, local government, and business groups will need to collaborate closely to ensure benefits are broadly shared and the economic shifts do not deepen disparities. For now, the region’s solid Gross Regional Product and relatively low unemployment rate provide a foundation to build upon, even as the landscape continues to change.[1][6][12]