Australia’s resources and mining equipment, technology, and services (METS) sectors are not just the backbone of the economy; they are the lifeblood driving innovation and job creation. Contributing an impressive 15% to the national GDP and generating over 1.1 million jobs, these sectors are essential for the nation’s prosperity. However, as the METS Insight: State of Mining Review reveals, a significant challenge looms on the horizon: a severe skills shortage, particularly in the digital realm.
With nearly 300,000 people directly employed by METS businesses, the demand for skilled workers is at an all-time high. The competition for talent is heating up, not just locally but also from neighboring regions like New Zealand, Papua New Guinea, and Southeast Asia. As Ged Welsh, regional director for Hays North Queensland, points out, “This is placing additional strain on our capacity, productivity, and candidate attraction efforts.” The stark reality is that in May 2024, job vacancies in the mining sector surged by almost 30% compared to the pandemic era. This spike signals a pressing need for a workforce equipped with modern skills.
The Department of Industry Science and Resources has identified a staggering demand for nearly 21,000 on-site operating employees across 60 projects worth $41 billion. Moreover, if Australia decides to pivot towards lithium hydroxide production, an additional 4,000 workers will be needed by 2030. The CSIRO’s roadmap further underscores the urgency, projecting a demand for over 700 million tonnes of metals and minerals by 2050. This includes nearly 9 million tonnes of lithium, 130 million tonnes of silicon for electric vehicles, and 48 million tonnes of nickel for batteries. The message is clear: to meet this growing demand, a diversified and skilled workforce is essential.
In response to this challenge, initiatives like the International Mining and Resources Conference (IMARC) are stepping up to champion equality, diversity, and inclusion. Recruiting women into the mining industry presents both hurdles and opportunities, as highlighted by Welsh. “While new female entrants are highly desirable, they are difficult to find,” he notes. Yet, with no barriers to entry for women with the right skills, the sector stands to benefit from a more inclusive workforce.
However, the mining industry faces a significant hurdle in attracting younger talent. Gen Z workers are increasingly drawn to high-paying urban jobs that offer better work-life balance, leaving FIFO roles in the dust. This shift in priorities is compounded by an industry that has historically favored experienced candidates over fresh talent. As Welsh aptly puts it, the appeal of mining as an aspirational career is waning.
Emerging trends in 2024 reveal a surprising demand for underground and surface operators, particularly in the East Coast hard rock sector. Yet, the shortage of skilled maintenance candidates has caught many off guard, creating a paradox where demand is high, but the talent pool is shallow. With the Australian government investing $55.6 million in programs to bolster women’s careers in male-dominated sectors, there’s a glimmer of hope for diversifying the workforce.
As the industry grapples with these challenges, recruitment agencies like Talent Blue are stepping up to fill the gaps. They emphasize the need for comprehensive training and incentives to keep new entrants engaged in the sector. As older workers retire, taking their invaluable knowledge with them, the industry must adapt to retain experienced personnel while also embracing technological advancements that will help upskill the current workforce.
The landscape is shifting, and the mining sector must evolve to meet these challenges head-on. The convergence of technology and workforce development presents a unique opportunity for Australia to not only fill the talent void but to position itself as a leader in the global mining arena. The future hinges on how effectively the sector can adapt, attract, and retain the talent it desperately needs.
