The latest State of the Regions report has shown the Hunter Valley region in NSW is generally performing well compared with the rest of the country.

National Economics has released its annual report for the Australian Local Government Association, analysing every local government area within Australia.

Unemployment in the Hunter region is seems has risen compared with last year, however so has disposable income.

However Deputy Director of National Economics Ian Manning said the Hunter is still facing some challenges.

The coal export trade, although the outlook is unknown, it’s not as bright as many would have thought but it’s going fine now.

The report has revealed the fallout from a mining sector downturn is continuing to take its toll on the Hunter.

Mr Manning said the focus now is on the mining sector.

“Well it’s just a question of how fast the investment tails off,” he said.

“The mines will keep operating at current prices but you’re not going to get the investment in additional mining capacity that might have been predicted five years ago.”

The Hunter Valley still provides NSW mining jobs for the many communities in the region. A mix of open-cut and underground mines are dotted throughout the area with local communities relying on these mines for their livelihoods.