Bendigo Economy Slumps as Job Losses Deepen Community Concerns

Greater Bendigo’s economy reached its lowest point since the onset of the pandemic in July 2026, with 413 jobs lost in that month alone and a decline in output totaling $28 million. This downturn has amplified ongoing challenges across the region, prompting community members to voice their concerns about employment security and the future economic path of the area.

Economic challenges amid shifting employment sectors

The sharp decline in employment and output comes at a critical time for Greater Bendigo, Victoria’s third-largest regional economy with a Gross Regional Product exceeding $10 billion. While the local economy has historically depended on a blend of manufacturing, health care, and food production, recent years have seen a marked transition towards service-based industries. However, some sectors have contracted notably-most significantly health care and social assistance, which despite being the region’s largest employer, saw a near 15% fall in employment by August 2025.

These sectoral shifts contribute to uncertainty for workers and residents in the city and surrounding suburbs. The reported job losses and economic strain are felt not only in the CBD and established neighbourhoods but extend into wider areas served by key institutions such as Bendigo Health and La Trobe University’s regional campus. These centres often anchor local employment, and disruptions ripple through the community ecosystem.

Community perspectives inform the impact

Local voices, drawn from community forums and economic engagement efforts, reveal growing concern about job availability and the resilience of key services. Small business owners across commercial streets such as Pall Mall and View Street note fluctuations in consumer spending and the pressures of navigating a changing workforce composition. Meanwhile, residents in areas influenced by food production and the visitor economy express hopes for sustained investment, especially as Greater Bendigo boasts a strong profile as a UNESCO City of Gastronomy, backed by more than 120 local wineries and breweries.

Despite these concerns, optimism endures about the potential for new infrastructure projects, like the Derby Solar Farm, to add renewable energy jobs and stimulate economic recovery. Reflecting demographic shifts, the region continues to attract residents from Melbourne and other urban centres, evidenced by robust net internal migration figures, which may support future labour market growth.

The local evidence from August 2025 indicates approximately 82,000 people employed across sectors, with retail trade and construction growing significantly, even as health care and social assistance contract. This mixed economic picture underscores the ongoing transformation Bendigo is undergoing, balancing historical industries with emerging economic drivers.

Looking ahead, the pressing challenge remains aligning workforce development with Greater Bendigo’s evolving economic structure. Projections estimate the need for more than 11,000 new workers by 2027, focusing on health, food production, and the visitor economy. Supporting affected community members, transitioning workers, and encouraging new business growth will be critical. Local authorities and regional partners may focus on targeted training programs, support for micro-businesses, and infrastructure investment to bolster resilience.

For now, Bendigo residents and stakeholders face a period of adjustment, mindful of the wider economic conditions but determined to participate in shaping a sustainable and inclusive future for the region.