In 1999, the steelworks closed after 84 years operation and had employed about 50,000 in its existence, many for decades. The closure of the BHP steelworks occurred at a time of strong economic expansion in Australia. At the time of the closure and since the closure Newcastle experienced a significant amount of economic diversification which has strengthened the local economy. Despite this, the closure caused a deterioration of the employment situation in Newcastle where the unemployment rate rose rapidly to almost 12% from under 9% at the previous trough just prior to the closure.