Others will argue the case for policy to protect the region's existing industry.

"What I'll be saying to the Prime Minister, if I get a chance, is that the market has failed us and it's time for government to take a direct role in assisting with the support and growth of our industries," South Coast Labour Council secretary Arthur Rorris said.

"We need support from government for policy to ensure that our manufacturing and steel sectors not only survive but are able to support jobs ..."

The Australian Workers' Union will be pushing for rebates for people who buy Australian steel, and commitment to domestic steel for government projects.

"It will create jobs in the future and secure the ones that are here," union branch secretary Andy Gillespie said.

Australian Industry Group regional manager Leanne Grogan said the Prime Minister's visit was an opportunity for the region to have input into future stimulus packages.

Mr Rudd's visit has been seen by community, business and union leaders as further evidence of the depth of the Illawarra's unemployment problem, however the chance to advance the region's list of priorities has been widely welcomed.

The Wollongong visit follows a series of forums on job creation in unemployment hot spots such as south-western Sydney.

The third forum, in Casula yesterday after similar meetings in Campbelltown and Bankstown, won praise from the community.

The Prime Minister welcomed Thursday's national jobless figures, which fell from 5.7 per cent in March to 5.4 per cent in April.

"But we've got to be very realistic about the problems we face ahead," he warned.

After the forum, Mr Rudd fielded suggestions from locals and community groups about how to support employment and infrastructure in south-west Sydney.

"The purpose of our gathering ... is straightforward and hard at the same time.

"It's how do we make a difference with unemployment here in the local area."