Industry Workforce Summary Mining
Industry Workforce Summary Mining
This industry workforce summary has been prepared by the Workforce Development Directorate of the Department of Further Education, Employment, Science and Technology using data available from the Australian Bureau of Statistics and the National Centre for Vocational Education Research. The profile is based on the ANZSIC industry classification structure and provides initial baseline information to contribute to discussions regarding workforce development requirements. The profile covers common elements and does not purport to provide a complete coverage of all matters in a manner that may be of interest to users. In addition, users may have access to other data that will complement the information in this profile. This profile, together with profiles of other industries, is available from the Workforce Information Service website: www.workforceinfoservice.sa.gov.au Users are encouraged to provide feedback on by emailing comments to Chris Harrison, Director, Workforce Development on: [email protected]
© Minister for Employment, Training and Further Education, 2008
MINING WORKFORCE SUMMARY The Department of Further Education, Employment, Science and Technology (DFEEST) has prepared a series of Industry Workforce Summaries for all industries in South Australia. The Industry Workforce Summaries are based on the Australian and New Zealand Standard Industry Classification (ANZSIC), and cover all employing activities. The DFEEST Industry Workforce Summaries are available for each of the following ANZSIC divisions: ANZSIC code
Division
A
Agriculture, Forestry & Fishing
B
Mining
C
Manufacturing
D
Electricity, Gas & Water Supply
E
Construction
F
Wholesale Trade
G
Retail Trade
H
Accommodation, Cafes & Restaurants
I
Transport & Storage
J
Communication Services
K
Finance & Insurance
L
Property & Business Services
M
Government Administration & Defence
N
Education
O
Health & Community Services
P
Cultural & Recreational Services
Q
Personal & Other Services
INDUSTRY COMPOSITION For the purpose of this profile, the Mining industry is defined as all businesses involved in the extraction of minerals, services to mining and mineral exploration. The Mining industry under this definition does not include those businesses undertaking the refining or smelting of minerals or ores; these are included under Manufacturing. A complete listing of all individual industries involved, and the numbers of people employed in each, is included at Appendix 1 to this document. The Mining industry can be viewed by its major activities: !
Coal Mining
!
Oil & Gas Extraction
!
Metal ore Mining
!
Other Mining (eg Mineral Sands and Precious Stone)
!
Services to Mining (eg Exploration Services and Contract Mining)
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 2
WORKFORCE SUMMARY The Mining industry employed a total of 10,000 people for the year ended February 2008, accounting for 1.3 per cent of employment in South Australia. The gender distribution of people employed in the Mining industry is heavily weighted towards males, and the industry has a younger than average age profile. In recent years the Mining industry has seen its share of female workers significantly increase, while the age profile has become younger. The Mining industry is composed of a number of occupation groups; Tradespersons, Intermediate Production & Transport Workers and Professionals account for over two thirds of the Mining workforce. There are also significant numbers of Associate Professionals. Following the predominance of trades occupations in the Mining industry, trades qualifications are the most common level of qualification held by workers in the industry. Over one third of employment in the Mining industry occurs in the Northern Statistical area. While this is contradictory to the general distribution of population and employment across the state it is in line with the distribution of mining operations across the state. Employment in the Mining industry has grown by over 120 per cent between February 1999 and February 2008. This represents an increase of 5,600 jobs. Looking forward, recent strong growth in mining exploration is expected to translate into higher jobs growth in the mining sector over the coming years. During 2008, employment in mining is expected to increase by about 20 per cent. At June 2007 the Mining industry’s contribution to South Australian Gross State Product (GSP) was $2,550 Million 1 (3.9 per cent).
WORKFORCE The Mining industry employed a total of 10,000 people for the year ended February 2008, accounting for 1.3 per cent of employment in South Australia. For the year ended February 2008, Mining was the second smallest employer of South Australians, accounting for only 1.3 per cent of South Australian employment. However, it should be noted that Australian Bureau of Statistics employment figures for South Australia’s mining sector during the past two years have shown a high degree of variability from quarter to quarter. According to mining industry workforce study, conducted by the South Australian Centre for Economic Studies (SACES) in March 2008, employment in the mining industry (according to those businesses surveyed) was reported to be 10,200 in 2007. Table 1. Persons Employed, Year ended February 2008 Employed in Mining Oil & Gas Extraction Metal Ore Mining Other Mining Services to Mining Total Mining (includes other & not further defined)
Percentage of Mining workforce
2,000 4,800 500 2,100
20.0% 48.0% 5.0% 21.0%
10,000
100.0%
ABS Labour Force Survey Quarterly
Almost half of the Mining workforce was employed in the Metal Ore Mining sub-division (4,800 people or 48.0 per cent of all employment in Mining). Services to Mining, particularly Exploration, also contributed significantly to overall employment in mining (2,100 persons or 21.0 per cent of the
1
ABS, Cat 5220.0 Table 5. Expenditure, Income and Industry Components of Gross State Product, South Australia, Chain volume measures
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 3
Mining workforce). More detailed listing of activities within the Mining industry can be found at Appendix 1 to this document. Since February 2003, employment in the Mining industry has increased by 5,500 jobs (122.2 per cent). Over that time there has been an increase in the number of people employed across all groups with the exception of Other Mining. Table 2. Persons Employed, 2003 and 2008 Persons Employed year ended Feb 2003
Persons Employed year ended Feb 2008
1,000 1,100 700 1,600
2,000 4,800 500 2,100
1,000 3,700 -200 500
100.0% 336.4% -28.6% 31.3%
4,500
10,000
5,500
122.2%
697,900
767,800
69,900
10.0%
Oil & Gas Extraction Metal Ore Mining Other Mining Services to Mining Total Mining (includes other & not further defined)
All Industries
Change 2003– 2008
Percentage Change
ABS Labour Force Survey
AGE AND SEX The gender distribution of people employed in the Mining industry is heavily weighted towards males, and the industry has a younger than average age profile. The Mining industry is dominated by males in employment with 79.0 per cent of the Mining workforce being male, significantly higher than the average across all industries of 54.5 per cent. Oil & Gas Extraction recorded the largest share of females (25.0 per cent). In recent years the Mining industry in South Australia has seen its share of female workers significantly increase, from 4.4 per cent in 2003 to 21.0 per cent in 2008. Figure 1. Employment by Sex, Year ended February 2008
100%
80%
60%
40% All Industries
20% 0%
Mining Males Females ABS Labour Force Survey
As can be seen in the following table, the Mining industry has an age profile heavily skewed towards ‘prime age’ 25-44 year old workers (66.0 per cent). The Mining industry has significantly lower proportions of very young workers, 15-24 years (6.0 per cent) and older workers, 45 years and older (27.0 per cent). The Mining workforce has become younger over the past five years. In February 2008, 72.0 per cent of the Mining workforce was under the age of 45 compared to just 53.3 per cent in 2003. SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 4
Table 3. Age Groups, Year ended February 2008 Age group
Percentage of Mining workforce
Employed in Mining
15-24 years 25-44 years 45-64 years 65 years & older Total
Percentage of All Industries workforce
600 6,600 2,700 100
6.0% 66.0% 27.0% 1.0%
17.4% 42.8% 37.3% 2.5%
10,000
100.0%
100.0%
ABS Labour Force Survey
OCCUPATIONS The Mining industry is composed of a number of occupation groups; Tradespersons, Intermediate Production & Transport Workers and Professionals account for over two thirds of the Mining workforce. There are also significant numbers of Associate Professionals. Table 4. Occupations, Year ended February 2008 Employed in Mining
Occupation group
Managers & Administrators Professionals Associate Professionals Tradespersons & Related Workers Advanced Clerical & Service Workers Intermediate Clerical, Sales & Service Workers Intermediate Production & Transport Workers Elementary Clerical, Sales & Service Workers Labourers & Related Workers Total (incl. not stated, inadequately described)
Percentage of Mining workforce
Percentage of All Industries workforce
700 2,200 1,500 2,300 100 600 2,300 100 200
7.0% 22.0% 15.0% 23.0% 1.0% 6.0% 23.0% 1.0% 2.0%
8.7% 17.8% 13.0% 12.3% 3.4% 16.8% 9.4% 9.6% 9.0%
10,000
100.0%
100.0%
ABS Labour Force Survey
Figure 2 shows the above industry share of Professionals; Associate Professionals, Tradespersons, and Intermediate Production & Transport Workers in the Mining industry. Since early 2003 the Mining industry has experienced significant increases in all occupation groups with the exception of Advanced Clerical & Service Workers which has remained unchanged. The number of Associate Professionals nearly quadrupled over this time. More detailed information on occupations is available at Appendix 2 to this document.
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 5
Figure 2. Occupations, Year ended February 2008 Managers & Administrators Professionals Associate Professionals Tradespersons & Related Workers Advanced Clerical & Service Workers Intermediate Clerical, Sales & Service Workers Intermediate Production & Transport Workers Elementary Clerical, Sales & Service Workers
All Industries
Labourers & Related Workers
Mining
0%
5%
10%
15%
20%
25%
30%
ABS Labour Force Survey
EDUCATION AND QUALIFICATIONS Following the predominance of trades occupations in the Mining industry, trades qualifications are the most common level of qualification held by workers in the industry. Qualifications As can be seen in the following table, workers in the Mining industry have a greater likelihood of having Certificate Level III or IV qualifications than workers generally. This corresponds with information previously seen on occupations, where over 20 per cent of the Mining workforce were employed as tradespersons and related workers. There is also an above average share of workers with Bachelor Degree or above qualifications which corresponds with there being a large number of persons employed as professional and associate professionals in the Mining industry. Table 5. Level of Qualifications, 2006 Highest Qualification
Employed in Mining
Percentage of Mining workforce
Percentage of All Industries workforce
Bachelor degree or above Advanced Diploma & Diploma Level Certificate Level III or IV Certificate Level I or II No qualifications
1,343 375 1,627 59 2,191
22.6% 6.3% 27.3% 1.0% 36.8%
18.5% 8.4% 18.4% 1.6% 46.0%
Total (incl. not stated)
5,949
100.0%
100.0%
ABS Population Census 2006
Over a third of those employed in the Mining industry have no qualifications, this is less than the all industry average of nearly one half.
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 6
Figure 3. Level of Qualifications, 2006 50% All Industries Mining 40%
30%
20%
10%
0% Bachelor degreee Diploma or Certificate III & IV or above advanced diploma Level
Certificate I & II Level
No qualifications
ABS Population Census 2006
Training and apprenticeships The numbers of apprentices and trainees commencing in the Mining industry have generally increased over the period 1996 to 2006 (despite considerable fluctuation). As Figure 4 shows, numbers of new apprentices and trainees peaked in 2004 when they more than doubled from a year earlier. Despite numbers falling after 2004, they remained higher than any time between 1996 and 2003. Figure 4. Commencements of apprentices and trainees, 1996 to 2006 120
Number of commencments
Mining 100 80 60 40 20 0 1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
National Centre for Vocational Education Research (NCVER)
The number of new apprentices and trainees remained relatively stable between 2005 and 2006 decreasing by only 3 people (5.0 per cent). This was inline with a general downturn in new apprentice and trainee commencements across all industries.
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 7
Table 6. Apprentices and Trainees - Commencements
Oil & Gas Extraction Metal Ore Mining Other Mining Services to Mining Total Mining (includes other & not further defined)
2004
2005
2006
2 0 101 1
1 10 49 0
2 4 44 7
104
60
57
National Centre for Vocational Education Research (NCVER)
Table 7 shows that, of the apprentice and trainee commencements in the Mining industry in 2006, these apprentices and trainees were primarily signed to contracts for trade occupations and intermediate production & transport occupations. Table 7. Commencing Apprentices and Trainees, 2006 Commencements in Mining
Occupation group
Percentage of Mining commencements
Managers & Administrators Professionals Associate Professionals Tradespersons & Related Workers Advanced Clerical & Service Workers Intermediate Clerical, Sales & Service Workers Intermediate Production & Transport Workers Elementary Clerical, Sales & Service Workers Labourers & Related Workers
0 0 3 19 0 4 26 0 5
0.0% 0.0% 5.3% 33.3% 0.0% 7.0% 45.6% 0.0% 8.8%
Total (incl. not stated, inadequately described)
57
100.0%
National Centre for Vocational Education Research (NCVER)
REGIONAL DISTRIBUTION Over one third of employment in the Mining industry occurs in the Northern Statistic area. While this is inconsistent with the general distribution of population and employment across the state it is in line with the distribution of mining operations across the state Differing to the general population and employment distribution in South Australia, less than half the employment in the mining industry occurs in the Adelaide metropolitan area. Figure 5. Employment in Regions, 2006
Northern 35%
Eyre South East 2% 2% Murray Lands 2% Yorke & Low er North 3%
Outer Adelaide 8%
Adelaide 47% ABS Population Census 2006
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 8
While employment in Outer Adelaide, Yorke & Lower North, the Murray Lands, the South East and Eyre reflect the general population and employment across the state, it is the Northern Statistic region that exhibits the most striking results. Over one third of the employment in the Mining industry occurs in the Northern statistical region and while this is inconsistent with the general population distribution across the state, it is unsurprising given the concentration of mining operations in the North. Most areas of the state have shown significant increased employment in Mining between 2001 and 2006, close to 50 per cent or more. Northern SA region, the second largest employment region after the Adelaide Metro region, was the exception. While some statistical areas within Northern SA have experienced decreases in their employment levels since 2001, the North has experienced an overall increase in employment over this time. Declines in both the Flinders Ranges and the Far North have been more than offset by employment growth in Whyalla and the Port Pirie sub statistical region. Appendix 3 shows finer detail on the regional distribution of the Mining industry workforce, and reflects changes in employment between 2001 and 2006.
TRENDS IN EMPLOYMENT Employment in the Mining industry has grown by over 120 per cent between February 1999 and February 2008. This represents an increase of 5,600 jobs. During the period February 1999 to February 2008, overall employment in South Australia increased by 18.6 per cent (representing approximately 120,000 jobs). The Mining industry was the fastestgrowing industry sectors over that period, but due to its relatively small employment size was not one of the fastest growing industries in actual employment number terms. Table 9. Employment Trends, 1999 to 2008 Industry
Employment Year ended Feb 2008
Change since Feb 1999
Agriculture, Forestry & Fishing
Percentage change since Feb 1999
39,200
-7,000
-15.2%
Mining Manufacturing Electricity, Gas & Water Supply Construction Wholesale Trade Retail Trade Accommodation, Cafes & Restaurants Transport & Storage Communication Services Finance & Insurance Property & Business Services Government Administration & Defence Education Health & Community Services Cultural & Recreational Services Personal & Other Services
10,000 93,500 7,500 56,100 33,400 117,400 32,900 29,400 12,200 23,900 76,600 39,900 52,000 95,800 16,100 32,100
5,600 -1,900 3,300 19,100 500 21,000 -700 7,800 1,700 5,500 11,200 18,300 6,300 22,900 2,800 4,400
127.3% -2.0% 78.6% 51.6% 1.5% 21.8% -2.1% 36.1% 16.2% 29.9% 17.1% 84.7% 13.8% 31.4% 21.1% 15.9%
All Industries
767,800
120,600
18.6%
ABS Labour Force Survey
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 9
FUTURE TRENDS Recent strong growth in mining exploration is expected to translate into higher jobs growth in the mining sector over the coming years. According to the SACES mining workforce study, the South Australian mining sector is currently experiencing an exploration boom resulting in a strong upward trend in mineral exploration expenditure. In 2007, South Australia accounted for 16 per cent of national mineral exploration expenditure, up from 3.6 per cent a decade ago. SACES expect the exploration boom in South Australia to be translated into higher jobs growth over the coming years. During 2008, the SACES report suggests that employment in the mining sector (including contractors) will increase by around 20 per cent in (from 10,200 to 12,200). Looking further ahead, employment forecasts produced by the Monash Centre of Policy Studies in 2007 suggest that employment in Mining sector (excluding contractors) will fluctuate (slightly) over the next five years. It should be noted however, that the Monash forecasts exclude any emerging mining projects (according to the Department of Primary Industries and Resources there are currently 26 known emerging mining projects in South Australia) and also the Olympic Dam expansion which is still in pre-feasibility. Figure 6. Employment Projections 13,000 12,500
Mining
12,000 11,500 11,000 10,500 10,000 9,500 9,000 2007/08
2008/09
2009/10
2010/11
2011/12
Monash Centre of Policy Studies, 2006
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 10
2012/13
APPENDIX 1: Employment in Mining, 2006 Total employed
Industry Class
B000 Mining, undefined
Percentage of Mining workforce
479
8.1%
1100 Coal Mining, undefined 1101 Black Coal Mining 1102 Brown Coal Mining 1200 Oil & Gas Extraction 1310 Metal Ore Mining, undefined 1311 Iron Ore Mining 1312 Bauxite Mining 1313 Copper Ore Mining 1314 Gold Ore Mining 1315 Mineral Sand Mining 1316 Nickel Ore Mining 1317 Silver-Lead-Zinc Ore Mining 1319 Metal Ore Mining, not elsewhere classified 1400 Other Mining, undefined 1410 Construction Material Mining, undefined 1411 Gravel & Sand Quarrying 1419 Construction Material Mining, not elsewhere classified 1420 Mining, not elsewhere classified 1500 Services to Mining, undefined 1510 Exploration, undefined 1511 Petroleum Exploration (Own Account) 1512 Petroleum Exploration Services 1513 Mineral Exploration (Own Account) 1514 Mineral Exploration Services 1520 Other Mining Services
15 54 0 1,513 46 150 6 1,164 267 85 8 62 318 36 6 102 307 168 9 26 144 16 292 21 641
0.3% 0.9% 0.0% 25.5% 0.8% 2.5% 0.1% 19.6% 4.5% 1.4% 0.1% 1.0% 5.4% 0.6% 0.1% 1.7% 5.2% 2.8% 0.2% 0.4% 2.4% 0.3% 4.9% 0.4% 10.8%
Total
5,935
100.0%
ABS Population Census 2006
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 11
APPENDIX 2: Mining Occupations, 2006 Total employed
Occupation group
10 Managers & Administrators, not further defined 11 Generalist Managers 12 Specialist Managers 13 Farmers & Farm Managers 20 Professionals, not further defined 21 Science, Building & Engineering Professionals 22 Business & Information Professionals 23 Health Professionals 24 Education Professionals 25 Social, Arts & Miscellaneous Professionals 30 Associate Professionals, not further defined 31 Science, Engineering & Related Associate Professionals 32 Business & Administration Associate Professionals 33 Managing Supervisors (Sales & Service) 34 Health & Welfare Associate Professionals 39 Other Associate Professionals 40 Tradespersons & Related Workers, not further defined 41 Mechanical & Fabrication Engineering Tradespersons 42 Automotive Tradespersons 43 Electrical & Electronics Tradespersons 44 Construction Tradespersons 45 Food Tradespersons 46 Skilled Agricultural & Horticultural Workers 49 Other Tradespersons & Related Workers 50 Advanced Clerical & Service Workers, not further defined 51 Secretaries & Personal Assistants 59 Other Advanced Clerical & Service Workers 60 Intermediate Clerical, Sales & Service Workers, not further defined 61 Intermediate Clerical Workers 62 Intermediate Sales & Related Workers 63 Intermediate Service Workers 70 Intermediate Production & Transport Workers, not further defined 71 Intermediate Plant Operators 72 Intermediate Machine Operators 73 Road & Rail Transport Drivers 79 Other Intermediate Production & Transport Workers 80 Elementary Clerical, Sales & Service Workers, not further defined 81 Elementary Clerks 82 Elementary Sales Workers 83 Elementary Service Workers 90 Labourers & Related Workers, not further defined 91 Cleaners 92 Factory Labourers 99 Other Labourers & Related Workers Total (includes not stated) ABS Population Census 2006
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 12
Percentage of Mining workforce
21 84 403 8 16 714 384 7 3 65 7 375 182 16 0 66 39 445 90 188 31 17 3 502 0 78 25 0 332 19 6 44 442 54 211 662 0 11 13 16 6 30 27 202
0.4% 1.4% 6.8% 0.1% 0.3% 12.0% 6.5% 0.1% 0.1% 1.1% 0.1% 6.3% 3.1% 0.3% 0.0% 1.1% 0.7% 7.5% 1.5% 3.2% 0.5% 0.3% 0.1% 8.5% 0.0% 1.3% 0.4% 0.0% 5.6% 0.3% 0.1% 0.7% 7.4% 0.9% 3.6% 11.2% 0.0% 0.2% 0.2% 0.3% 0.1% 0.5% 0.5% 3.4%
5,935
100.0%
APPENDIX 3: Regional Employment in Mining, 2006 Employed in Mining 2006
Region
Adelaide Metro Northern Adelaide Western Adelaide Eastern Adelaide Southern Adelaide Outer Adelaide Barossa Kangaroo Island Mount Lofty Ranges Fleurieu Yorke & Lower North Yorke Lower North Murray Lands Riverland Murray Mallee South East Upper South East Lower South East Eyre Lincoln West Coast Northern SA Whyalla Pirie Flinders Ranges Far North Total (incl. not stated, no usual address)
Employment change since 2001
2,807
1,299
86.1%
641 400 818 948
293 191 342 473
84.2% 91.4% 71.8% 99.6%
500
271
118.3%
156 0 211 133
64 -3 129 81
69.6% -100.0% 157.3% 155.8%
192
81
73.0%
110 82
38 43
52.8% 110.3%
90
30
50.0%
41 49
11 19
36.7% 63.3%
92
41
80.4%
19 73
3 38
18.8% 108.6%
142
45
46.4%
95 47
34 11
55.7% 30.6%
2,101
287
15.8%
379 193 181 1,348
264 117 -70 -24
229.6% 153.9% -27.9% -1.7%
5,951
2,078
53.7%
ABS Population Census 2006
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 13
Percentage change since 2001
This industry workforce summary has been prepared by the Workforce Development Directorate of the Department of Further Education, Employment, Science and Technology using data available from the Australian Bureau of Statistics and the National Centre for Vocational Education Research. The profile is based on the ANZSIC industry classification structure and provides initial baseline information to contribute to discussions regarding workforce development requirements. The profile covers common elements and does not purport to provide a complete coverage of all matters in a manner that may be of interest to users. In addition, users may have access to other data that will complement the information in this profile. This profile, together with profiles of other industries, is available from the Workforce Information Service website: www.workforceinfoservice.sa.gov.au Users are encouraged to provide feedback on by emailing comments to Chris Harrison, Director, Workforce Development on: [email protected]
© Minister for Employment, Training and Further Education, 2008
MINING WORKFORCE SUMMARY The Department of Further Education, Employment, Science and Technology (DFEEST) has prepared a series of Industry Workforce Summaries for all industries in South Australia. The Industry Workforce Summaries are based on the Australian and New Zealand Standard Industry Classification (ANZSIC), and cover all employing activities. The DFEEST Industry Workforce Summaries are available for each of the following ANZSIC divisions: ANZSIC code
Division
A
Agriculture, Forestry & Fishing
B
Mining
C
Manufacturing
D
Electricity, Gas & Water Supply
E
Construction
F
Wholesale Trade
G
Retail Trade
H
Accommodation, Cafes & Restaurants
I
Transport & Storage
J
Communication Services
K
Finance & Insurance
L
Property & Business Services
M
Government Administration & Defence
N
Education
O
Health & Community Services
P
Cultural & Recreational Services
Q
Personal & Other Services
INDUSTRY COMPOSITION For the purpose of this profile, the Mining industry is defined as all businesses involved in the extraction of minerals, services to mining and mineral exploration. The Mining industry under this definition does not include those businesses undertaking the refining or smelting of minerals or ores; these are included under Manufacturing. A complete listing of all individual industries involved, and the numbers of people employed in each, is included at Appendix 1 to this document. The Mining industry can be viewed by its major activities: !
Coal Mining
!
Oil & Gas Extraction
!
Metal ore Mining
!
Other Mining (eg Mineral Sands and Precious Stone)
!
Services to Mining (eg Exploration Services and Contract Mining)
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 2
WORKFORCE SUMMARY The Mining industry employed a total of 10,000 people for the year ended February 2008, accounting for 1.3 per cent of employment in South Australia. The gender distribution of people employed in the Mining industry is heavily weighted towards males, and the industry has a younger than average age profile. In recent years the Mining industry has seen its share of female workers significantly increase, while the age profile has become younger. The Mining industry is composed of a number of occupation groups; Tradespersons, Intermediate Production & Transport Workers and Professionals account for over two thirds of the Mining workforce. There are also significant numbers of Associate Professionals. Following the predominance of trades occupations in the Mining industry, trades qualifications are the most common level of qualification held by workers in the industry. Over one third of employment in the Mining industry occurs in the Northern Statistical area. While this is contradictory to the general distribution of population and employment across the state it is in line with the distribution of mining operations across the state. Employment in the Mining industry has grown by over 120 per cent between February 1999 and February 2008. This represents an increase of 5,600 jobs. Looking forward, recent strong growth in mining exploration is expected to translate into higher jobs growth in the mining sector over the coming years. During 2008, employment in mining is expected to increase by about 20 per cent. At June 2007 the Mining industry’s contribution to South Australian Gross State Product (GSP) was $2,550 Million 1 (3.9 per cent).
WORKFORCE The Mining industry employed a total of 10,000 people for the year ended February 2008, accounting for 1.3 per cent of employment in South Australia. For the year ended February 2008, Mining was the second smallest employer of South Australians, accounting for only 1.3 per cent of South Australian employment. However, it should be noted that Australian Bureau of Statistics employment figures for South Australia’s mining sector during the past two years have shown a high degree of variability from quarter to quarter. According to mining industry workforce study, conducted by the South Australian Centre for Economic Studies (SACES) in March 2008, employment in the mining industry (according to those businesses surveyed) was reported to be 10,200 in 2007. Table 1. Persons Employed, Year ended February 2008 Employed in Mining Oil & Gas Extraction Metal Ore Mining Other Mining Services to Mining Total Mining (includes other & not further defined)
Percentage of Mining workforce
2,000 4,800 500 2,100
20.0% 48.0% 5.0% 21.0%
10,000
100.0%
ABS Labour Force Survey Quarterly
Almost half of the Mining workforce was employed in the Metal Ore Mining sub-division (4,800 people or 48.0 per cent of all employment in Mining). Services to Mining, particularly Exploration, also contributed significantly to overall employment in mining (2,100 persons or 21.0 per cent of the
1
ABS, Cat 5220.0 Table 5. Expenditure, Income and Industry Components of Gross State Product, South Australia, Chain volume measures
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 3
Mining workforce). More detailed listing of activities within the Mining industry can be found at Appendix 1 to this document. Since February 2003, employment in the Mining industry has increased by 5,500 jobs (122.2 per cent). Over that time there has been an increase in the number of people employed across all groups with the exception of Other Mining. Table 2. Persons Employed, 2003 and 2008 Persons Employed year ended Feb 2003
Persons Employed year ended Feb 2008
1,000 1,100 700 1,600
2,000 4,800 500 2,100
1,000 3,700 -200 500
100.0% 336.4% -28.6% 31.3%
4,500
10,000
5,500
122.2%
697,900
767,800
69,900
10.0%
Oil & Gas Extraction Metal Ore Mining Other Mining Services to Mining Total Mining (includes other & not further defined)
All Industries
Change 2003– 2008
Percentage Change
ABS Labour Force Survey
AGE AND SEX The gender distribution of people employed in the Mining industry is heavily weighted towards males, and the industry has a younger than average age profile. The Mining industry is dominated by males in employment with 79.0 per cent of the Mining workforce being male, significantly higher than the average across all industries of 54.5 per cent. Oil & Gas Extraction recorded the largest share of females (25.0 per cent). In recent years the Mining industry in South Australia has seen its share of female workers significantly increase, from 4.4 per cent in 2003 to 21.0 per cent in 2008. Figure 1. Employment by Sex, Year ended February 2008
100%
80%
60%
40% All Industries
20% 0%
Mining Males Females ABS Labour Force Survey
As can be seen in the following table, the Mining industry has an age profile heavily skewed towards ‘prime age’ 25-44 year old workers (66.0 per cent). The Mining industry has significantly lower proportions of very young workers, 15-24 years (6.0 per cent) and older workers, 45 years and older (27.0 per cent). The Mining workforce has become younger over the past five years. In February 2008, 72.0 per cent of the Mining workforce was under the age of 45 compared to just 53.3 per cent in 2003. SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 4
Table 3. Age Groups, Year ended February 2008 Age group
Percentage of Mining workforce
Employed in Mining
15-24 years 25-44 years 45-64 years 65 years & older Total
Percentage of All Industries workforce
600 6,600 2,700 100
6.0% 66.0% 27.0% 1.0%
17.4% 42.8% 37.3% 2.5%
10,000
100.0%
100.0%
ABS Labour Force Survey
OCCUPATIONS The Mining industry is composed of a number of occupation groups; Tradespersons, Intermediate Production & Transport Workers and Professionals account for over two thirds of the Mining workforce. There are also significant numbers of Associate Professionals. Table 4. Occupations, Year ended February 2008 Employed in Mining
Occupation group
Managers & Administrators Professionals Associate Professionals Tradespersons & Related Workers Advanced Clerical & Service Workers Intermediate Clerical, Sales & Service Workers Intermediate Production & Transport Workers Elementary Clerical, Sales & Service Workers Labourers & Related Workers Total (incl. not stated, inadequately described)
Percentage of Mining workforce
Percentage of All Industries workforce
700 2,200 1,500 2,300 100 600 2,300 100 200
7.0% 22.0% 15.0% 23.0% 1.0% 6.0% 23.0% 1.0% 2.0%
8.7% 17.8% 13.0% 12.3% 3.4% 16.8% 9.4% 9.6% 9.0%
10,000
100.0%
100.0%
ABS Labour Force Survey
Figure 2 shows the above industry share of Professionals; Associate Professionals, Tradespersons, and Intermediate Production & Transport Workers in the Mining industry. Since early 2003 the Mining industry has experienced significant increases in all occupation groups with the exception of Advanced Clerical & Service Workers which has remained unchanged. The number of Associate Professionals nearly quadrupled over this time. More detailed information on occupations is available at Appendix 2 to this document.
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 5
Figure 2. Occupations, Year ended February 2008 Managers & Administrators Professionals Associate Professionals Tradespersons & Related Workers Advanced Clerical & Service Workers Intermediate Clerical, Sales & Service Workers Intermediate Production & Transport Workers Elementary Clerical, Sales & Service Workers
All Industries
Labourers & Related Workers
Mining
0%
5%
10%
15%
20%
25%
30%
ABS Labour Force Survey
EDUCATION AND QUALIFICATIONS Following the predominance of trades occupations in the Mining industry, trades qualifications are the most common level of qualification held by workers in the industry. Qualifications As can be seen in the following table, workers in the Mining industry have a greater likelihood of having Certificate Level III or IV qualifications than workers generally. This corresponds with information previously seen on occupations, where over 20 per cent of the Mining workforce were employed as tradespersons and related workers. There is also an above average share of workers with Bachelor Degree or above qualifications which corresponds with there being a large number of persons employed as professional and associate professionals in the Mining industry. Table 5. Level of Qualifications, 2006 Highest Qualification
Employed in Mining
Percentage of Mining workforce
Percentage of All Industries workforce
Bachelor degree or above Advanced Diploma & Diploma Level Certificate Level III or IV Certificate Level I or II No qualifications
1,343 375 1,627 59 2,191
22.6% 6.3% 27.3% 1.0% 36.8%
18.5% 8.4% 18.4% 1.6% 46.0%
Total (incl. not stated)
5,949
100.0%
100.0%
ABS Population Census 2006
Over a third of those employed in the Mining industry have no qualifications, this is less than the all industry average of nearly one half.
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 6
Figure 3. Level of Qualifications, 2006 50% All Industries Mining 40%
30%
20%
10%
0% Bachelor degreee Diploma or Certificate III & IV or above advanced diploma Level
Certificate I & II Level
No qualifications
ABS Population Census 2006
Training and apprenticeships The numbers of apprentices and trainees commencing in the Mining industry have generally increased over the period 1996 to 2006 (despite considerable fluctuation). As Figure 4 shows, numbers of new apprentices and trainees peaked in 2004 when they more than doubled from a year earlier. Despite numbers falling after 2004, they remained higher than any time between 1996 and 2003. Figure 4. Commencements of apprentices and trainees, 1996 to 2006 120
Number of commencments
Mining 100 80 60 40 20 0 1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
National Centre for Vocational Education Research (NCVER)
The number of new apprentices and trainees remained relatively stable between 2005 and 2006 decreasing by only 3 people (5.0 per cent). This was inline with a general downturn in new apprentice and trainee commencements across all industries.
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 7
Table 6. Apprentices and Trainees - Commencements
Oil & Gas Extraction Metal Ore Mining Other Mining Services to Mining Total Mining (includes other & not further defined)
2004
2005
2006
2 0 101 1
1 10 49 0
2 4 44 7
104
60
57
National Centre for Vocational Education Research (NCVER)
Table 7 shows that, of the apprentice and trainee commencements in the Mining industry in 2006, these apprentices and trainees were primarily signed to contracts for trade occupations and intermediate production & transport occupations. Table 7. Commencing Apprentices and Trainees, 2006 Commencements in Mining
Occupation group
Percentage of Mining commencements
Managers & Administrators Professionals Associate Professionals Tradespersons & Related Workers Advanced Clerical & Service Workers Intermediate Clerical, Sales & Service Workers Intermediate Production & Transport Workers Elementary Clerical, Sales & Service Workers Labourers & Related Workers
0 0 3 19 0 4 26 0 5
0.0% 0.0% 5.3% 33.3% 0.0% 7.0% 45.6% 0.0% 8.8%
Total (incl. not stated, inadequately described)
57
100.0%
National Centre for Vocational Education Research (NCVER)
REGIONAL DISTRIBUTION Over one third of employment in the Mining industry occurs in the Northern Statistic area. While this is inconsistent with the general distribution of population and employment across the state it is in line with the distribution of mining operations across the state Differing to the general population and employment distribution in South Australia, less than half the employment in the mining industry occurs in the Adelaide metropolitan area. Figure 5. Employment in Regions, 2006
Northern 35%
Eyre South East 2% 2% Murray Lands 2% Yorke & Low er North 3%
Outer Adelaide 8%
Adelaide 47% ABS Population Census 2006
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 8
While employment in Outer Adelaide, Yorke & Lower North, the Murray Lands, the South East and Eyre reflect the general population and employment across the state, it is the Northern Statistic region that exhibits the most striking results. Over one third of the employment in the Mining industry occurs in the Northern statistical region and while this is inconsistent with the general population distribution across the state, it is unsurprising given the concentration of mining operations in the North. Most areas of the state have shown significant increased employment in Mining between 2001 and 2006, close to 50 per cent or more. Northern SA region, the second largest employment region after the Adelaide Metro region, was the exception. While some statistical areas within Northern SA have experienced decreases in their employment levels since 2001, the North has experienced an overall increase in employment over this time. Declines in both the Flinders Ranges and the Far North have been more than offset by employment growth in Whyalla and the Port Pirie sub statistical region. Appendix 3 shows finer detail on the regional distribution of the Mining industry workforce, and reflects changes in employment between 2001 and 2006.
TRENDS IN EMPLOYMENT Employment in the Mining industry has grown by over 120 per cent between February 1999 and February 2008. This represents an increase of 5,600 jobs. During the period February 1999 to February 2008, overall employment in South Australia increased by 18.6 per cent (representing approximately 120,000 jobs). The Mining industry was the fastestgrowing industry sectors over that period, but due to its relatively small employment size was not one of the fastest growing industries in actual employment number terms. Table 9. Employment Trends, 1999 to 2008 Industry
Employment Year ended Feb 2008
Change since Feb 1999
Agriculture, Forestry & Fishing
Percentage change since Feb 1999
39,200
-7,000
-15.2%
Mining Manufacturing Electricity, Gas & Water Supply Construction Wholesale Trade Retail Trade Accommodation, Cafes & Restaurants Transport & Storage Communication Services Finance & Insurance Property & Business Services Government Administration & Defence Education Health & Community Services Cultural & Recreational Services Personal & Other Services
10,000 93,500 7,500 56,100 33,400 117,400 32,900 29,400 12,200 23,900 76,600 39,900 52,000 95,800 16,100 32,100
5,600 -1,900 3,300 19,100 500 21,000 -700 7,800 1,700 5,500 11,200 18,300 6,300 22,900 2,800 4,400
127.3% -2.0% 78.6% 51.6% 1.5% 21.8% -2.1% 36.1% 16.2% 29.9% 17.1% 84.7% 13.8% 31.4% 21.1% 15.9%
All Industries
767,800
120,600
18.6%
ABS Labour Force Survey
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 9
FUTURE TRENDS Recent strong growth in mining exploration is expected to translate into higher jobs growth in the mining sector over the coming years. According to the SACES mining workforce study, the South Australian mining sector is currently experiencing an exploration boom resulting in a strong upward trend in mineral exploration expenditure. In 2007, South Australia accounted for 16 per cent of national mineral exploration expenditure, up from 3.6 per cent a decade ago. SACES expect the exploration boom in South Australia to be translated into higher jobs growth over the coming years. During 2008, the SACES report suggests that employment in the mining sector (including contractors) will increase by around 20 per cent in (from 10,200 to 12,200). Looking further ahead, employment forecasts produced by the Monash Centre of Policy Studies in 2007 suggest that employment in Mining sector (excluding contractors) will fluctuate (slightly) over the next five years. It should be noted however, that the Monash forecasts exclude any emerging mining projects (according to the Department of Primary Industries and Resources there are currently 26 known emerging mining projects in South Australia) and also the Olympic Dam expansion which is still in pre-feasibility. Figure 6. Employment Projections 13,000 12,500
Mining
12,000 11,500 11,000 10,500 10,000 9,500 9,000 2007/08
2008/09
2009/10
2010/11
2011/12
Monash Centre of Policy Studies, 2006
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 10
2012/13
APPENDIX 1: Employment in Mining, 2006 Total employed
Industry Class
B000 Mining, undefined
Percentage of Mining workforce
479
8.1%
1100 Coal Mining, undefined 1101 Black Coal Mining 1102 Brown Coal Mining 1200 Oil & Gas Extraction 1310 Metal Ore Mining, undefined 1311 Iron Ore Mining 1312 Bauxite Mining 1313 Copper Ore Mining 1314 Gold Ore Mining 1315 Mineral Sand Mining 1316 Nickel Ore Mining 1317 Silver-Lead-Zinc Ore Mining 1319 Metal Ore Mining, not elsewhere classified 1400 Other Mining, undefined 1410 Construction Material Mining, undefined 1411 Gravel & Sand Quarrying 1419 Construction Material Mining, not elsewhere classified 1420 Mining, not elsewhere classified 1500 Services to Mining, undefined 1510 Exploration, undefined 1511 Petroleum Exploration (Own Account) 1512 Petroleum Exploration Services 1513 Mineral Exploration (Own Account) 1514 Mineral Exploration Services 1520 Other Mining Services
15 54 0 1,513 46 150 6 1,164 267 85 8 62 318 36 6 102 307 168 9 26 144 16 292 21 641
0.3% 0.9% 0.0% 25.5% 0.8% 2.5% 0.1% 19.6% 4.5% 1.4% 0.1% 1.0% 5.4% 0.6% 0.1% 1.7% 5.2% 2.8% 0.2% 0.4% 2.4% 0.3% 4.9% 0.4% 10.8%
Total
5,935
100.0%
ABS Population Census 2006
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 11
APPENDIX 2: Mining Occupations, 2006 Total employed
Occupation group
10 Managers & Administrators, not further defined 11 Generalist Managers 12 Specialist Managers 13 Farmers & Farm Managers 20 Professionals, not further defined 21 Science, Building & Engineering Professionals 22 Business & Information Professionals 23 Health Professionals 24 Education Professionals 25 Social, Arts & Miscellaneous Professionals 30 Associate Professionals, not further defined 31 Science, Engineering & Related Associate Professionals 32 Business & Administration Associate Professionals 33 Managing Supervisors (Sales & Service) 34 Health & Welfare Associate Professionals 39 Other Associate Professionals 40 Tradespersons & Related Workers, not further defined 41 Mechanical & Fabrication Engineering Tradespersons 42 Automotive Tradespersons 43 Electrical & Electronics Tradespersons 44 Construction Tradespersons 45 Food Tradespersons 46 Skilled Agricultural & Horticultural Workers 49 Other Tradespersons & Related Workers 50 Advanced Clerical & Service Workers, not further defined 51 Secretaries & Personal Assistants 59 Other Advanced Clerical & Service Workers 60 Intermediate Clerical, Sales & Service Workers, not further defined 61 Intermediate Clerical Workers 62 Intermediate Sales & Related Workers 63 Intermediate Service Workers 70 Intermediate Production & Transport Workers, not further defined 71 Intermediate Plant Operators 72 Intermediate Machine Operators 73 Road & Rail Transport Drivers 79 Other Intermediate Production & Transport Workers 80 Elementary Clerical, Sales & Service Workers, not further defined 81 Elementary Clerks 82 Elementary Sales Workers 83 Elementary Service Workers 90 Labourers & Related Workers, not further defined 91 Cleaners 92 Factory Labourers 99 Other Labourers & Related Workers Total (includes not stated) ABS Population Census 2006
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 12
Percentage of Mining workforce
21 84 403 8 16 714 384 7 3 65 7 375 182 16 0 66 39 445 90 188 31 17 3 502 0 78 25 0 332 19 6 44 442 54 211 662 0 11 13 16 6 30 27 202
0.4% 1.4% 6.8% 0.1% 0.3% 12.0% 6.5% 0.1% 0.1% 1.1% 0.1% 6.3% 3.1% 0.3% 0.0% 1.1% 0.7% 7.5% 1.5% 3.2% 0.5% 0.3% 0.1% 8.5% 0.0% 1.3% 0.4% 0.0% 5.6% 0.3% 0.1% 0.7% 7.4% 0.9% 3.6% 11.2% 0.0% 0.2% 0.2% 0.3% 0.1% 0.5% 0.5% 3.4%
5,935
100.0%
APPENDIX 3: Regional Employment in Mining, 2006 Employed in Mining 2006
Region
Adelaide Metro Northern Adelaide Western Adelaide Eastern Adelaide Southern Adelaide Outer Adelaide Barossa Kangaroo Island Mount Lofty Ranges Fleurieu Yorke & Lower North Yorke Lower North Murray Lands Riverland Murray Mallee South East Upper South East Lower South East Eyre Lincoln West Coast Northern SA Whyalla Pirie Flinders Ranges Far North Total (incl. not stated, no usual address)
Employment change since 2001
2,807
1,299
86.1%
641 400 818 948
293 191 342 473
84.2% 91.4% 71.8% 99.6%
500
271
118.3%
156 0 211 133
64 -3 129 81
69.6% -100.0% 157.3% 155.8%
192
81
73.0%
110 82
38 43
52.8% 110.3%
90
30
50.0%
41 49
11 19
36.7% 63.3%
92
41
80.4%
19 73
3 38
18.8% 108.6%
142
45
46.4%
95 47
34 11
55.7% 30.6%
2,101
287
15.8%
379 193 181 1,348
264 117 -70 -24
229.6% 153.9% -27.9% -1.7%
5,951
2,078
53.7%
ABS Population Census 2006
SOUTH AUSTRALIAN MINING INDUSTRY WORKFORCE SUMMARY 13
Percentage change since 2001
