The majority of jobs generated by the forest and wood products industry are generated by the processing sector, as is the majority of the flow-on economic impact of the industry. Far fewer jobs are created if logs are harvested and exported with no or little processing. The recent G6 Open Letter calls for a ban on the export of unprocessed sawlogs.

See new report (March 2018) on the socio-economic impacts of the forest industry in Victoria (excluding the Green Triangle in the South West) undertaken through the University of Canberra for the Forest and Wood Products Association. 

Key findings:

The number of jobs generated by the industry has declined significantly since 2006, although employment generated by hardwood plantations has grown since 2012.

The majority of jobs generated by the industry are generated by the processing sector, as is the majority of the flow-on economic impact of the industry.

This highlights the importance of local processing of wood and fibre for generation of jobs from the industry; far fewer jobs are created if logs are harvested and exported with no or little processing.

Half of the businesses suveyed report business conditions as being more challenging than usual, and many find it difficult to recruit some types of workers. Increasing labour and input costs and lack of investment in the industry are concerns for many businesses.

The current trend of ongoing decline in employment – particularly in processing of wood and fibre products - is likely to continue unless there is significant new opportunity for investment in the industry.

A large majority of residents – 79% in the Central Highlands and Gippsland region, 77% in the North Central region and 64% in the Western region - felt the forest industry had positive impacts on local employment. However, when asked about contributions other than employment, residents generally perceived the forest industry as having fewer positive effects than the farming and tourism industries, and more negative effects. When views about negative impacts were examined, the most common concerns reported about the forest industry were related to road impacts and landscape aesthetics, with a majority reporting concerns about impacts of the industry on the quality of and traffic on local roads, and between 46% (North Central) and 58% (Western region) feeling the industry had a negative impact on the attractiveness of the local landscape.