61,500 new jobs by 2015: report

Around 61,500 new operational jobs will be created in the mining sector by 2015, as well as tens of thousands more in the construction stages, according to estimates released in a report last week from the National Resources Sector Employment Taskforce.

The Taskforce, which was established last year, was tasked with consulting with industry to better understand the skills and employment numbers required for more than 75 advanced major resources projects, and some 286 less advanced projects – most slated to commence production in the period 2010 to 2020.

The report confirms that confidence in the resources sector is strong.   New job vacancy figures released by the Australian Bureau of Statistics on 30 June 2010 show the mining industry needed a record 6,200 new workers nationally in May 2010; far more than at any time during the mining boom of the previous decade.

The National Resources Sector Employment Taskforce Final Report seeks to provide recommendations for governments, the resources sector and stakeholders to address critical skills needs and plan for future growth.

Analysis of demand and supply

Taskforce analysis shows: 

• Construction jobs on new projects could peak at 45,000 in 2012 and 2013, with strong jobs growth for technicians and tradespeople and machinery operators and drivers.
• Employment growth in mining operations is expected to be 4.9 per cent per annum over the next five years, creating around 61,500 new jobs by 2015 due to increased production, driven by demand from Asia.  There will be strong demand for professionals in addition to the skills listed above.
• In addition, further vacancies will occur in mining and gas operations as around 10 per cent of employees leave the sector each year through retirement or transition to other sectors.  Replacement demand in mining operations could be around 16,000 persons per annum, including approximately 3,000 retirements.
• In LNG operations, pending the number of LNG trains constructed by 2015, employment could increase by around 3,200 (eg if four new trains are sanctioned and operating in Queensland and six in Western Australia).  There will be strong jobs growth for drillers (Queensland only), operators, electrical trades and mechanical technicians.
• Replacement demand in gas operations could be around 2,000 persons per annum, including approximately 500 retirements.

The report cites emerging shortages at present—mainly engineers and other professional staff with more than five years experience. The domestic supply of mining engineers and geoscientists will not be sufficient to meet demand over the next five years with a shortfall of around 1,700 and 3,000 respectively. However, there are large numbers of people with these qualifications currently working in other occupations.

While there are currently significant numbers of unemployed tradespeople, the Taskforce expects labour market tightening will result in skills shortages by late 2011 to early 2012, particularly in Western Australia and some regions of Queensland. As a result, the resources sector could be 36,000 tradespeople short by 2015. If these workers are recruited from other sectors there will be skills shortages in those industries.

Key recommendations include:

The 133 page report cites a raft of recommendations, including: 

• That resources companies be required to provide a workforce impact statement using a standard template to outline the workforce needs of projects ($40 million+) at the same time as they apply to the relevant state or territory government for project approval. Companies should then provide the relevant state or territory government with more detailed workforce information at the time of the Final Investment Decision, prior to the construction of the project and before project commences operations. This information should include proposed sources of labour and training plans. This approach should be trialled in Queensland, Western Australia and one other state with a view to being implemented nationally from 1 January 2012. This is recommended as an information requirement, not a further approval requirement.
• That resources and construction companies place a very high priority on training as a means of addressing their current and future skills needs and consider adopting a training culture similar to their approach to safety.
• That the resources sector significantly increase the number of apprentices it employs. The sector currently employs considerably fewer apprentices than would be expected given its share of trade employment.  This should include a strong focus on providing adult apprenticeships.
• That the Australian Government work with industry, unions, training providers, state and territory governments, industry skills councils, state skills bodies and industry associations to trial alternative apprenticeship models with a view to increasing the number of trade-qualified people in occupations and locations where a shortage is expected (e.g. electricians and welders).

The report can be read here: http://www.deewr.gov.au/Skills/Programs/National/nrset/Documents/FinalReport.pdf.