While Singleton continued to ride coal’s boom-time wave it was not enough to lift the entire Hunter economy, and it won’t last forever, the foundation’s research director Simon Deeming told The Argus yesterday.

“We have only seen a resources boom of this scale two or three times in history and while it has positives for places like Singleton it is part of a bigger cycle,” Mr Deeming said.

“Resources are incredibly hot at the moment, unemployment around Singleton is at record lows because of exceptional growth from global demand and expansion in related infrastructure.

“But at some stage it will pass and we should be considering where we want to be then, where do we want to be in 20 years?”

The foundation’s September quarter report said coal exports underlay both advantages and challenges for Hunter region residents.

Annual coal exports through the port of Newcastle had risen for the last five years and the Hunter’s coal chain had become the region’s ninth largest employer.

While high mining industry wages had a multiplier effect underpinning growth, most economists agreed that commodity prices would stabilise in the next few years due to international competitiveness and economies having to operate in “a carbon constrained framework”, the report said.

“In addition, there are significant external costs of coalmining and export, such as impacts on the environment and quality of life, which also need to be considered to ensure that we take a broader view of the region’s direction and priorities.

“A large proportion of Hunter businesses were small businesses operating in sectors constrained by consumer spending, such as retail, accommodation, food services and construction.

“The trickle-down effect from the resource related industries is clearly not a sufficient counterbalance to adverse macro-economic influences such as high interest rates, wildly fluctuating equity markets and continued global uncertainty,” the report said.