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14-08-2014, 10:46 PM
Thousands of mining jobs to go
THE AUSTRALIAN AUGUST 15, 2014 12:00AM
Ewin Hannan
Industrial Editor
Melbourne
MINING industry employment is forecast to slump by 4.5 per cent over the five years to 2018, with more than 16,000 jobs to be lost across exploration, metal ore and coalmining.
New analysis released by the federal Department of Employment describes the predicted decrease as a “significant slowdown’’ compared with the 106,700 jobs created in the mining industry in the five years to May this year. It says the projected decrease will result in 6200 jobs being lost in metal ore mining, 5400 positions in exploration and 5100 jobs in coalmining. Employment in construction material mining is projected to increase slightly by 300 in the five years to 2018.
Mining employment almost doubled in the five years to May 2012 as the industry responded to historically high mineral prices by expanding output and building new capacity
“Since May 2012, employment growth has stalled, growing by only 4000, or 1.5 per cent over the 12 months to May 2014 as mineral prices have fallen, construction activity has plateaued and operating costs are being scrutinised intensely,’’ the report says.
“Weaker confidence and the deferral of a number of major resource projects have also been caused by slower growth in demand from China and lower commodity prices.’’
Jobs growth in the mining sector over the past five years was, as expected, concentrated in Western Australia, where it grew by 50,000, Queensland, which was up by 28,400 and NSW, which increased by 10,300.
However, over the past two years, while overall mining employment across Australia has remained steady, it has fallen by 13,300 in Western Australia and 7300 in NSW.
Mining jobs have increased in Queensland by 9900 over the past two years, largely driven by an increase of 8300 jobs in the oil and gas extraction sector.
The department attributes the Queensland increase to the development of coal-seam gas fields to feed the Curtis Island liquefied natural gas export terminals that are under construction.
Employment Minister Eric Abetz said the report’s findings demonstrated the “urgent need to encourage further investment and development in the industry starting with the abolition the failed mining tax’’.
“The mining tax is destroying jobs and discouraging investment,’’ Senator Abetz said. “It is effectively working as a reverse tariff on Australian jobs.’’
He called on the Senate to scrap the tax.
According to the report, median weekly earnings of full-time employees in mining last year were higher than for any other industry — $2071 compared with $1152 across all industries.
All of the sectors within the mining industry had median full time weekly earnings above the all industries median, with weekly earnings ranging from $2493 in oil and gas extraction down to $1500 for construction material mining.
Overall, a high proportion of mining workers were higher skilled, with 63 per cent having attained a Certificate III level qualification or higher.
THE AUSTRALIAN AUGUST 15, 2014 12:00AM
Ewin Hannan
Industrial Editor
Melbourne
MINING industry employment is forecast to slump by 4.5 per cent over the five years to 2018, with more than 16,000 jobs to be lost across exploration, metal ore and coalmining.
New analysis released by the federal Department of Employment describes the predicted decrease as a “significant slowdown’’ compared with the 106,700 jobs created in the mining industry in the five years to May this year. It says the projected decrease will result in 6200 jobs being lost in metal ore mining, 5400 positions in exploration and 5100 jobs in coalmining. Employment in construction material mining is projected to increase slightly by 300 in the five years to 2018.
Mining employment almost doubled in the five years to May 2012 as the industry responded to historically high mineral prices by expanding output and building new capacity
“Since May 2012, employment growth has stalled, growing by only 4000, or 1.5 per cent over the 12 months to May 2014 as mineral prices have fallen, construction activity has plateaued and operating costs are being scrutinised intensely,’’ the report says.
“Weaker confidence and the deferral of a number of major resource projects have also been caused by slower growth in demand from China and lower commodity prices.’’
Jobs growth in the mining sector over the past five years was, as expected, concentrated in Western Australia, where it grew by 50,000, Queensland, which was up by 28,400 and NSW, which increased by 10,300.
However, over the past two years, while overall mining employment across Australia has remained steady, it has fallen by 13,300 in Western Australia and 7300 in NSW.
Mining jobs have increased in Queensland by 9900 over the past two years, largely driven by an increase of 8300 jobs in the oil and gas extraction sector.
The department attributes the Queensland increase to the development of coal-seam gas fields to feed the Curtis Island liquefied natural gas export terminals that are under construction.
Employment Minister Eric Abetz said the report’s findings demonstrated the “urgent need to encourage further investment and development in the industry starting with the abolition the failed mining tax’’.
“The mining tax is destroying jobs and discouraging investment,’’ Senator Abetz said. “It is effectively working as a reverse tariff on Australian jobs.’’
He called on the Senate to scrap the tax.
According to the report, median weekly earnings of full-time employees in mining last year were higher than for any other industry — $2071 compared with $1152 across all industries.
All of the sectors within the mining industry had median full time weekly earnings above the all industries median, with weekly earnings ranging from $2493 in oil and gas extraction down to $1500 for construction material mining.
Overall, a high proportion of mining workers were higher skilled, with 63 per cent having attained a Certificate III level qualification or higher.