The August issue of the Australian Bureau of Statistics' Labour Force, Australia report pegs the region's youth unemployment rate at 15.1 per cent, up from 10.3 per cent in 2011.

It comes as details released in a leaked cabinet document reveal the state government's plans to sell off the western side of Belmont TAFE campus for an estimated $2.96 million.

Under the plans, training would be delivered at other campuses or in nearby leased facilities.

Swansea state MP Yasmin Catley said this would have a significant impact on local youth striving to gain the skills needed to get a job.

"One of the most dignifying things in a young person's life is to have a job and this government is robbing them of that opportunity," Ms Catley said

"I've had many concerned students, parents, teachers and people who have lost a job and are looking to re-skill or retrain approach me with concerns about the potential closure of Belmont TAFE," she said.

"Why would you close [the campus] when we are in the midst of an unemployment crisis?"

A TAFE NSW spokesperson said it would continue to offer training services to meet students' needs.

"TAFE NSW is developing a strategic asset management plan to ensure training is matched with the changing needs of students and employers," the spokesperson said.

"[It] is making targeted investments aimed at creating more specialised and flexible learning facilities rather than maintaining older facilities that are no longer well-utilised.

"Proceeds received as part of this process will be reinvested back into TAFE NSW, including those campuses in Hunter TAFE's footprint."