The study compares figures to what otherwise was likely to occur without a carbon pollution reduction scheme, assuming a 5 per cent reduction in emissions levels by 2020 based on 1990 levels.

However it does not take into account any jobs created by emerging green industries or in other areas.

Projected regional employment losses for the Illawarra by 2020 are 1440 jobs in total, including 720 minerals (including mining) jobs.

By 2030, it is predicted to rise to 4200 jobs, including 2100 minerals jobs. It equates to a 1.4 per cent loss in Illawarra employment.

Job losses in the region would be predominantly associated with coal mining, the study said.

NSW Minerals Council chief executive Nikki Williams said the study indicated the NSW coal sector would be adversely affected.

"Mining is a highly paid profession and the added value to communities is that every miner in work creates a job for four other people," he said. "Knock-on employment effects (of the scheme) are therefore magnified significantly, leading to social despondency and declining community services and amenities."

The Illawarra and Hunter region would account for almost 60 per cent of total minerals industry job losses, according to the study.

"However, due to the more diversified employment base of these regions, compared to the Queensland regions, the employment losses in the minerals industry represent a smaller share of regional employment than for the major mining regions in Queensland."