The resources industry construction workforce is set to collapse over the next four years, plunging 91 per cent and shedding more than 78,000 jobs by 2018

December 20, 2013 Leave a comment

Mining construction jobs to plunge by 78,000, study finds

December 16, 2013

Michael Pascoe

From a peak of 85,819 positions this year, the construction element of the resources boom is expected to dive to just 7700 in 2018. Photo: Erin Jonasson

The resources industry construction workforce is set to collapse over the next four years, plunging 91 per cent and shedding more than 78,000 jobs by 2018, dwarfing the Holden closure job losses.From a peak of 85,819 positions this year, the construction element of the resources boom is expected to dive to just 7700 in 2018, according to the 2013 resources skills study released on Monday by the Australian Workforce and Productivity Agency.

The surge of construction workers returning to the broader economy comes at a time when non-resources construction is at a low ebb and when the Reserve Bank says public works’ share of the economy is at its lowest point in at least half a century.

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The agency study is based on what its industry, union and educator reference group regards as the most likely low-growth scenario outlined by the Bureau of Resources and Energy Economics earlier this year. Job losses are expected to be gradual in 2014 – down to 83,324 – and then rapidly accelerate to 2018.

The dive in construction jobs will be only partially offset by a rise of nearly 40,000 resources operations jobs, led by the oil and gas sector where employment should rise from 38,943 this year to 61,212 in 2018. Mining operations jobs should increase by 17,560 from 236,690 this year to 254,260.

Some of those positions are expected to be filled by retrained or multiskilled workers from the construction sector, but many will not. The industry is facing another skills shortage, this time for scarce operators in the oil and gas sector.

”The transition from construction to operations will increase the demand for high-level specialist operators including roles that require deep and relevant experience,” the report finds. ”It will be difficult to source many of these skills domestically. Rapid growth will also stretch experienced supervisory capability, which could affect productivity and safety.”

The agency study calls for industry, government and training providers to collaborate more to maximise local employment opportunities, including piloting apprenticeship and training models used in the British oil and gas industry. But the rapid growth of Australian coal seam and liquefied national gas industry is occurring as part of an international boom.

”Global competition for skilled workers is increasing and with a long lead time required to develop critical skills, industry, government and education and training providers have an opportunity now to work together to develop responses to meet these skills challenges,” said agency chairman, Philip Bullock.

Filed under Macro Trends

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