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Sydney, Australia’s most expensive city, is known for its high cost of living, with rankings consistently placing it between the fifth and fifteenth most expensive cities globally. The city's bustling CBD, particularly Pitt Street, is home to major high-end retailers, adding to its luxury status. Despite these challenges, workers in Sydney enjoy some of the highest wage levels globally, ranking seventh out of 77 cities according to UBS data from 2012. On average, residents work 1,846 hours per year with 15 days of annual leave, reflecting a balance of high wages and work expectations.
In 2016, Greater Sydney's labor force numbered over 2.27 million people, with a participation rate of 61.6%. Full-time workers comprised 61.2% of the workforce, while part-time workers made up 30.9%. Major occupations include professionals, clerical and administrative workers, managers, and community and personal service workers. The city’s largest industries by employment are Health Care and Social Assistance (11.6%), Professional Services (9.8%), Retail Trade (9.3%), Construction (8.2%), and Education and Training (8.0%). Within the City of Sydney, the Professional Services and Financial Services sectors account for 25.4% of total employment.
The financial pressures in Sydney extend to wages. In 2016, 57.6% of working-age residents earned less than $1,000 per week, while 14.4% earned $1,750 or more weekly. The median weekly income for individuals was $719, while families and households earned $1,988 and $1,750, respectively. Unemployment in the City of Sydney was relatively low at 4.6%, but Western Sydney continues to struggle with higher unemployment rates, particularly in regions like Parramatta, despite growth in commercial centers. Approximately 200,000 commuters travel daily from Western Sydney to the CBD and surrounding suburbs, highlighting the disparities in job creation and population growth.
In terms of housing, Sydney has witnessed a significant shift since World War II, with homeownership becoming more common compared to renting. However, the city’s real estate market remains one of the most expensive in the world, with median house prices rising by 8.6% per year since 1970. As of 2014, the median house price was $630,000, driven by the scarcity of land and increasing costs. In 2011, 31.6% of Sydney’s dwellings were rented, while 30.4% were owned outright, and 34.8% were mortgaged. The burden of rent and mortgage payments is a key concern, with many renters paying upwards of $350 per week and 82.9% of mortgage holders facing monthly repayments of $1,000 or more. The median weekly rent in Sydney in 2011 stood at $450, a figure that has likely risen with the continued pressure on the housing market.
Sydney’s domestic economy remains a complex mix of high wages, rising costs, and a diverse labor force, with housing affordability and job creation in outer suburbs continuing to be key challenges for the city. As Sydney’s cost of living rises, the gap between its affluent inner areas and struggling outer suburbs remains a critical issue for policymakers.