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Australia’s minerals industry professionals (including geologists and mining engineers) are experiencing double the average national unemployment rate.
Research by the Australasian Institute of Mining and Metallurgy (AusIMM) shows high unemployment among minerals industry professionals that is in double-digits and remains stubbornly high.
The annual AusIMM Professional Employment Survey, conducted across the Institute’s 14,000 members, revealed:
· Unemployment among Australian minerals professionals is 12.2 per cent.
· Minerals professionals now face double Australia’s national unemployment rate (Australia’s trend unemployment rate was 6.1 per cent in July 2014, ABS Cat 6202.0).
· Geology professionals are facing the highest level of unemployment at 15.1 per cent.
· One in 10 minerals professionals were made redundant in the 2013-14 year, reflecting a highly volatile employment market.
· Minerals professionals commonly report strong pressures to work more hours for the same pay (17.5 per cent); to accept lower pay or conditions for the same job (16.6 per cent); and to accept reduced working hours (8.4 per cent).
· Less than half (49.1 per cent) of AusIMM’s Student Members are confident they will find work as a minerals professional when they graduate.
· More than half of AusIMM members (50.8 per cent) believe there will be fewer professional job opportunities in the minerals sector in the coming year.
AusIMM President Geoff Sharrock says the research shows the depth of the downturn in the minerals sector and the high levels of disruption and uncertainty faced by mining industry professionals.
‘Sustained high levels of unemployment are being felt across all minerals professional disciplines and all Australian states and territories. The impacts of cost-cutting in the minerals sector have been particularly broad, deep and sustained. There are minerals professionals with many years’ experience who are struggling to find work,’ Mr Sharrock said.
‘The mining sector relies on its minerals professionals to drive innovation and productivity improvements. The Australian economy relies on minerals professionals to find and develop the resources that will become the mines of the future. It is distressing to see these highly trained professionals out of work.’
AusIMM CEO Michael Catchpole said the reasons for structural adjustment in the minerals sector were clear.
“Companies have faced strong pressures to return value to shareholders, focus on productivity and respond to changing demand and reduced prices for commodities. AusIMM members understand the need for change in the sector. However, many highly-skilled minerals professionals are now unemployed and the sector risks losing their skills. As a result we will see long-term adverse impacts on the continued development of Australia’s minerals sector.”
“Every highly-skilled minerals professional who leaves the sector or goes overseas to work diminishes the Australian minerals industry’s ability to continue to innovate, to lead the application of new mining technologies and to sustainably improve productivity,”Mr Catchpole said.
The AusIMM urges governments to focus on economic and industry policies that reduce barriers to investment in Australia’s minerals industry and cut red tape; that encourage investment in exploration and innovation; and that support access to continuing professional development and to high-quality university qualifications for the minerals professionals of the future.
AusIMM President Geoff Sharrock said the AusIMM hoped that the survey results would be used to inform government and industry policy.
‘As a priority, the Australian Government must act to ensure that its skilled migration programs reflect the radically changed minerals employment market that we now see, rather than continuing to rely on two-year old labour market data,’ he said.
‘These survey results demonstrate the significant impact that the minerals industry’s adjustments have had on minerals professionals. They highlight the risk that the Australian economy could lose further momentum as the professionalism, adaptability and innovation of the economic powerhouse that is Australia’s mining sector is put at risk.
‘The need for long term thinking is clear. There must be a focus on supporting and developing minerals professionals to ensure the future of the minerals sector and Australia’s economic wellbeing,’ Mr Sharrock said.
The AusIMM Professional Employment Survey results can be accessed here.
