Perth plays a central role in the economy of Western Australia, serving as the administrative and business hub of the state. Despite the state's key industries, such as mining, petroleum, and agriculture being located outside the city, Perth remains a dominant force in driving the region's economic activities. Its position as the state’s capital, combined with its large population and economic base, has provided ample opportunities for businesses, particularly those catering to local and diversified markets.

Historically, Perth's economy was heavily tied to resources, but since the 1950s, the city has experienced a shift towards the service industries. While the city continues to provide essential services for the resources sector and agriculture, the majority of Perth's workforce is now employed in sectors that cater to the local population, such as retail, business services, healthcare, education, and public administration.

Due to its geographical isolation, Perth has never developed a significant manufacturing industry. Instead, it has relied on importing manufactured goods from other parts of Australia and overseas. However, local industries, such as shipbuilding and niche manufacturing in areas like Kwinana, Welshpool, and Kewdale, have found their footing, particularly after WWII. These areas became key industrial estates, supporting heavy industry such as oil refining, steel production, and alumina processing, and were bolstered by the standardization of the east-west rail gauge linking Perth with the eastern states.

Post-WWII, the rapid suburban expansion of Perth, aided by increased car ownership and improved transport infrastructure, contributed to decentralization. This allowed smaller-scale manufacturing businesses to flourish in suburban industrial estates, with many firms taking advantage of affordable land for the construction of expansive, single-story plants.

In recent years, Perth has evolved into a hub for technology startups. Since the early 2000s, the city has fostered a thriving tech ecosystem, attracting skilled workers and innovative companies. Startups like Appbot, Agworld, Touchgram, and Healthengine have gained international recognition, while incubators and programs like StartupWA, Spacecubed, and Vocus Upstart have been integral in supporting Perth’s growing tech sector and nurturing the next generation of local employers.

As Perth continues to diversify its economy, its transformation from a mining-centered economy to a service and technology-driven hub showcases its ability to adapt and thrive in a changing global landscape.