Over the last decade, the Victorian economy has grown faster than any other state, and we expect our economy to grow over the forward estimates.
Economic growth has been supported by a record number of businesses currently choosing to invest in Victoria.
Business investment has grown by 44% since September 2020, faster than the rest of Australia, proving that businesses have confidence in the Victorian economy. There are now 123,000 more businesses in net terms than in June 2020, with 4,300 new businesses in the start-up and scale-up space alone.
Growth in business investment and employment since September 2020, Victoria and the rest of Australia
Note:
Growth in employment is from September 2020 to March 2026; growth in business investment is from the September quarter 2020 to the December quarter 2025 (the latest data available).
Victoria’s strong economy is underpinning a strong labour force. Just in the last year, 26,100 Victorians have found work, providing stable jobs for workers as global economic pressures mount. Since the peak impacts of the pandemic in September 2020, more than 646,000 Victorians have found jobs – the strongest growth in the nation.
And our economy is fairer too. Since last Budget, our participation rate has averaged at a historically high 67.7%, meaning more Victorians have been employed during this time than ever before.
This has been driven by the high number of women who are participating in the workforce – women who are backed by our Free Kinder program and our commitment to enshrine a right to work from home.
Commercial construction has also increased over the past year, headlined by investments in data centres to power the AI revolution, and the green energy transition continues to support engineering construction.
These numbers reflect the work of the Victorian Government to make it faster, easier and more attractive to work and do business in Victoria.
We know that affordable and reliable energy is a cornerstone of a strong economy – that’s why we’re continuing to power the energy transition by accelerating investment in renewables and maintaining reliable energy for Victorians.
And due to the Victorian Government’s strong investments in energy, Victoria now consistently has the lowest wholesale power prices in the country.
It is clear – more people are choosing Victoria to be their home, more businesses are setting up in this state, and more workers are finding good, fair jobs in our labour market.
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