Unemployment increasing in minerals industry

Unemployment in the Australian minerals industry has far exceeded national unemployment figures, a new report from the Australian Institute of Mining and Metallurgy (AusIMM) shows.

The report shows a significant and sudden increase in unemployment and underemployment among minerals industry professionals, including geoscientists and engineers, over the past 12 months. Unemployment has increased from less than 2% to almost 11%, AusIMM says.

The AusIMM Employment Survey, which polled the institute’s 13,500 members, showed:

• Unemployment among Australian minerals professionals increased from 1.7% in July 2012 to 10.9% in July 2013.
• In July 2012, only 2.9% of employed minerals professionals reported that they wanted to work more hours (the ‘underemployed’). By July 2013, many of those professionals found themselves unemployed. Among those still working, there was a three-fold increase in reported underemployment, with a 9.1% rate of underemployment.
• Nearly 60% of those surveyed believed that there will be fewer professional jobs available in a year’s time.
• The survey shows some significant regional variations, with New Zealand professionals faring slightly better than their Australian counterparts, reporting an 8.7% rate of unemployment in the New Zealand minerals industry.
• After many years of focus on the need to increase the pool of skilled professionals in the Australian and New Zealand mining sectors, there are now many highly skilled professionals who are unemployed or underemployed.

The research confirms strong anecdotal evidence of considerable pain and disruption within the professional ranks of the minerals sector, said AusIMM President Geoff Sharrock.

“Traditionally, a downturn in mining industry investment and operations impacts first on exploration geologists and then other professionals, including mining and metallurgical engineers,” Sharrock said.

“This research shows that the impacts this time have been sudden and have bitten deeply into the professional employees who are central to finding, developing and running the mining operations that underpin our economy.”

Both those working for major mining companies and those involved in exploration and consultancy work are feeling the effects of increased unemployment and underemployment, AusIMM CEO Michael Catchpole said.

“Many highly skilled minerals professionals are now unemployed or underemployed and we risk losing their skills. This will reduce the ability of the minerals industry to innovate and improve productivity and to respond to increases in demand for our resources as economic conditions improve in our major markets,” Catchpole said.

“AusIMM will use the results of this research to work with governments and the minerals industry to address some of the policies and practices that perpetuate steep fluctuations in demand for skilled professionals as the industry responds to external factors and government policies lag behind fast-changing market conditions.”

The full report is available here.