The most comprehensive economic modelling to date shows the effect of the job losses for the Wollongong, Shellharbour and Kiama regions.

It has also explored the nightmare scenario that if the Port Kembla steelworks closed down entirely it would wipe more than $2.4 billion off the strength of the Illawarra economy.

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The team behind the report withheld its publication for eight months fearing it could hurt economic confidence in the region and stifle growth.

The report is labelled draft, however the Mercury understands the numbers represent the final figures which were awaiting release.

The modelling also shows government assistance after the BlueScope job losses amounts to a "drop in the ocean" compared with the dire economic impact for the region, according to one of the report's authors.

The report, compiled by a specialist unit within the University of Wollongong and the Illawarra Regional Information Service (IRIS), shows that for every one job lost at BlueScope more than two will eventually be lost in the wider Illawarra economy.

Downstream job losses will amount to more than 1760 jobs, with the mining, retail and transport sectors hardest hit.

In August, BlueScope said it would stop trying to compete in international markets against cheaper rivals, and instead focus on servicing domestic steel demand.

The company, struggling under pressure by rising commodity prices and a strong Australian dollar, last year halved steel production and announced that 800 jobs and 300 contractors would be cut from its Port Kembla plant.

A BlueScope spokesman said yesterday that the company was still focused on following through with its restructure and getting itself into the best possible shape for when conditions improve.

"We are continuing to invest in the Port Kembla plant. For example, in the past several weeks BlueScope Steel has implemented two major projects at the hot strip mill during its annual major plant shutdown," he said.

"The projects reinforce BlueScope's intention to remain a viable steel manufacturer in the Illawarra region".

The study notes that the shock of the job losses will be mitigated by some "automatic stabilisers" including voluntary redundancies, retirements, unemployment benefits and other circumstances that will alleviate some of the impact.

However, it then warns that the longer term consequences "of the decline in the steel sector should not be understated".

IRIS chief Simon Pomfret, who helped author the report, said the region's economy was not likely to recover from the job losses in the near future.

He said the figures demonstrated that government assistance had been minuscule when held up to the scale of the restructure.

The Federal Government, together with BlueScope and the State Government, contributed to a $30 million stimulus package in the immediate aftermath of the job cuts, to stimulate the economy and help grow rival industries.

However, Mr Pomfret said this would have a minimal impact.

"We welcome any support from government, but the size of that fund, it will have a marginal impact on potential job losses modelled here," he said.

"Thirty million dollars is a drop in the ocean."

Mr Pomfret said the report was not published for eight months for fear it would further dampen confidence in the region in the immediate aftermath of last year's August job cuts.

"We were in a time when we were under a very dark cloud," he said.

"This report had some really negative outcomes for the community and there was a reluctance to release it immediately because of the pessimism that was out there."

The report was commissioned by the State Government's Department of Industry, Innovation, Science, Research and Tertiary Education, along with Regional Development Illawarra and Wollongong City Council.