But in the Hunter, especially, head office involvement in candidate selection appears to have further dented rank and file enthusiasm.

Labor's replacement of sitting members Bryce Gaudry and Kelly Hoare with Jodi McKay and Greg Combet while successful politically were heavily opposed in the branches.

Some Newcastle ALP members expelled for supporting Mr Gaudry's campaign as an independent candidate have since been reinstated but the pressure is on head office to readmit the final outcasts as a healing gesture.

Lake Macquarie councillor Jodie Harrison, who was part of a left faction reform push at last year's ALP state conference, said the Gaudry expulsions had caused bad blood in the party.

She acknowledged State Government infighting had affected the party's standing, but said "members know the best way to achieve change is to stay within the party".

Newcastle councillor Sharon Claydon, a member of the ALP's powerful administrative committee, said Labor faced the same challenges as other parties to recruit and remain accessible to people with busy lives.

Cr Claydon said her inner-city branch was doing well and a "flurry" of interest followed Labor's federal win.

Labor's problems were highlighted last year when upper house MP Penny Sharpe said the party was "in a critical condition", having lost 4000 members in NSW between 2002 and last year.