National Resources Sector Employment Taskforce Technical Paper

RESOURCING THE FUTURE 

National Resources Sector 

Employment Taskforce 

Technical Paper 

July 2010

© Commonwealth of Australia 2010 

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Disclaimer: 

The material contained in this paper has been developed by the National Resources Sector Employment 

Taskforce. The views and opinions expressed in the materials do not necessarily reflect the view of or 

have the endorsement of the Australian Government or of any minister, or indicate the Australian 

Government’s commitment to a particular course of action. 

The Australian Government and the National Resources Sector Employment Taskforce accept no 

responsibility for the accuracy or completeness of the contents and accept no liability in respect of the 

material contained in the paper. The Australian Government recommends that users exercise their own 

skill and care in evaluating the accuracy, completeness, and relevance of the paper and where necessary 

obtain independent professional advice appropriate to their own particular circumstances. 

In addition, the Australian Government and the National Resources Sector Employment Taskforce, their 

members, employees, agents and officers accept no responsibility for any loss or liability (including 

reasonable legal costs and expenses) or liability incurred or suffered where such loss or liability was 

caused by the infringement of intellectual property rights, including the moral rights, of any third 

person. 

The paper can be accessed at: www.deewr.gov.au/nrset

Table of Contents 

1. Introduction............................................................................................................. 1 

1.1 Mapping resources projects......................................................................................................1 

1.2 Demand for labour and skills....................................................................................................1 

1.3 Supply of labour and skills........................................................................................................1 

1.4 Skill gaps..................................................................................................................................2 

2. Projects..................................................................................................................... 3 

2.1 Projects underway or in the pipeline.........................................................................................3 

2.2 Project timing ..........................................................................................................................5 

3. Demand for labour and skills .............................................................................. 11 

3.1 Trends in demand for resources .............................................................................................12 

3.2 Demand for construction labour and skills .............................................................................13 

3.3 Modelling outcomes...............................................................................................................14 

3.4 Mining production.................................................................................................................18 

3.5 Demand for labour and skills in mining operations (excludes gas)...........................................19 

3.6 Gas operations.......................................................................................................................21 

3.7 Replacement demand.............................................................................................................24 

4. Supply of labour and skills................................................................................... 28 

4.1 Australia’s existing stock of skills.............................................................................................29 

4.2 Unemployment by occupation and by state and territory........................................................30 

4.3 New supplies of skills..............................................................................................................31 

5. Where are the skills gaps? ................................................................................... 45 

5.1 Strong economic growth is likely to increase the competition for skills 

and labour from other industries............................................................................................46 

5.2 Trends in earnings..................................................................................................................46 

5.3 The potential for skills gaps ...................................................................................................47 

5.4 Skills demand ........................................................................................................................47 

5.5 Supply of skills.......................................................................................................................47 

5.6 Supply gaps...........................................................................................................................48 

5.7 Competing demands for construction skills sought by the resources sector.............................50 

5.8 Skills shortages are limited to date but will increase................................................................53 

5.9 Summary...............................................................................................................................56 

National Resources Sector Employment Taskforce: Technical Paper | ii

Appendix I—Taskforce modelling outcomes................................................................. 58 

Construction..................................................................................................................................58 

Mining...........................................................................................................................................60 

Appendix II—Detailed ABARE projections of commodity production 2008–2015 ..... 63 

Appendix III—Employed and unemployed by occupation........................................... 65 

Appendix IV—Higher education .................................................................................... 67 

Linear projection model for higher education data..........................................................................67 

Completions and projections in domestic engineering and geoscience undergraduate courses........69 

People on their way into the sector ...............................................................................................70 

Share of employment by field of study............................................................................................71 

Appendix V—DEEWR analysis of skill shortages ......................................................... 72 

Skill shortage methodology ...........................................................................................................78 

Appendix VI—NRSET Industry Survey........................................................................... 84 

Background....................................................................................................................................84 

Conducting the survey...................................................................................................................84 

Appendix VII—Acronyms.............................................................................................. 101 

Appendix VIII—References........................................................................................... 103 

Please note: this report uses data available as at 1 June 2010 

ii | National Resources Sector Employment Taskforce: Technical Paper

List of tables and figures 

Tables 

Table 1: Advanced projects, number, cost ($ million), sector and state and territory, April 2010......4 

Table 2: 

Projected demand for construction skills..........................................................................16 

Table 3: Projected employment in mining operations, 2015..........................................................20 

Table 4: 

Table 5: 

Table 6: 

Table 7: 

Energy Skills Queensland, new jobs growth by occupation, 

Queensland, projections to 2015.....................................................................................22 

Growth scenarios for Western Australia (4, 6 and 8 trains)..............................................23 

Estimates of gross replacement rates for major resources sector occupation....................25 

Projected losses from mining sector employment to retirement, 

2010 to 2015, by occupation..........................................................................................27 

Table 8: Number employed and unemployed for selected occupations, February 2010.................29 

Table 9: Unemployment by selected previous occupation, by state and territory, 2010..................30 

Table 10: Unemployment in selected areas, March quarter 2010....................................................31 

Table 11: Projected growth in skills supply for selected technicians 

and tradespeople, 2010 to 2015, best, average and worst case scenarios .......................33 

Table 12: Projected new skill formation in the skilled trades, Australia, 2010 to 2015.....................34 

Table 13: Projected supply of technicians and tradespeople, by state and territory, 

2010 to 2015, by scenario..............................................................................................35 

Table 14: Relative share of apprentices employed by the resources sector, by selected 

occupations (fair share=100)...........................................................................................38 

Table 15: Relative share of apprentices employed by the resources sector, 

by industry (fair share=100).............................................................................................39 

Table 16: Student commencements in engineering higher education courses, 

by citizenship and course level, 2002 to 2008.................................................................40 

Table 17: Student commencements in geoscience higher education courses, 

by citizenship and course level, 2002 to 2008.................................................................40 

Table 18: Number of completions and projected completions in higher education domestic 

undergraduate courses for engineering fields of education, 2008 and 2014....................41 


undergraduate courses for engineering, by state and territory, 2008 and 2014................41 

Table 20: Proportion of graduates working in areas related to training, 

by field of study, 2008.....................................................................................................42 

Table 21: Number and percentage of those with mining engineering and geoscience 

qualifications working in mining, 2006............................................................................43 

Table 22: Primary visa applications granted by selected occupations, 2008–09...............................44 

Table 23: Projected supply of trades versus projected new and replacement jobs ...........................48 

Table 24: Projected supply of engineers versus projected new and replacement jobs ......................49 

Table 25: Current and emerging skills shortages, 2010 onward......................................................54 

National Resources Sector Employment Taskforce: Technical Paper | iii

Table 26 Pit Crew Management Consulting Services Pty Ltd, workforce analysis 

by ANZCO category, November 2009–November 2013...................................................55 

Table 27: Heavy and civil engineering construction projection for technicians and 

trades workers and machinery operators and drivers (short term jobs), 

2009 to 2016..................................................................................................................58 

Table 28: Projections of growth in mining employment (less oil and gas) 2008 to 2015, 

by occupation ................................................................................................................60 

Table 29: Projected employment growth for mining operations, by state and territory, 

2008 to 2015..................................................................................................................62 

Table 30: ABARE commodity projections 2008 to 2015..................................................................63 

Table 31: Number employed and unemployed for selected professional occupations......................65 

Table 32: Number employed and unemployed for selected technician 

and tradespeople occupations.........................................................................................66 

Table 33: Number employed and unemployed for selected occupations.........................................66 


undergraduate courses for engineering and geoscience fields of education.....................69 

Table 35: Bachelor’s degree graduates available for full-time work and in full-time study as a 

proportion of all bachelor’s degree graduates, and of those available for full-time 

work, the proportion of those in and seeking full-time employment, 2008......................70 

Table 36: The number of people with an engineering and related technology degree 

or earth science degree by industry of employment, 2006...............................................71 

Table 37: Skill shortages in resources occupations, 2008 to 2010...................................................77 

iv | National Resources Sector Employment Taskforce: Technical Paper

Figures 

Figure 1: Advanced projects by location...........................................................................................4 

Figure 2: Less advanced projects–state share Australia, April 2010...................................................5 

Figure 3: Scheduling for advanced and less advanced projects ........................................................6 

Figure 4: Mining engineering work done, per cent of nominal GDP, 1987–2009............................12 

Figure 5: Estimated construction employment by year–three growth scenarios...............................15 

Figure 6: Forecast total construction labour demand in Western Australia, 2009–10 to 2015–16...17 

Figure 7: 2010 Major projects workforce demand—Queensland, 2009–10 to 2015–16.................18 

Figure 8: Age profile of the mining (includes oil and gas extraction) 

and construction industries, February 2010.....................................................................26 

Figure 9: Number and percentage change in apprentice and trainee completions by state and 

territory, 2005–2009.......................................................................................................32 

Figure 10: Projected growth in the supply of tradespeople, 2010 to 2015, by state and territory, 

average case scenario......................................................................................................34 

Figure 11: Projected growth in the supply of tradespeople, 2010 to 2015, by state 

and territory, percentage change, average case scenario..................................................36 

Figure 12: Projected growth in supply of selected tradespeople, 2010 to 2015, by state 

and territory, percentage change, average case scenario..................................................37 

Figure 13: Other major infrastructure projects..................................................................................52 

Figure 14: Number of suitable applicants per vacancy, engineers, 2007 to 2010..............................73 

Figure 15: Vacancies filled, trades groups, 2007 to 2010 (per cent)..................................................74 

Figure 16: Number of suitable applicants per vacancy, construction trades, 2007 to 2010................75 

Figure 17: Number of suitable applicants per vacancy, metal/engineering trades, 2007 to 2010.......75 

Figure 18: Number of suitable applicants per vacancy, electrical 

and communications trades, 2007 to 2010.....................................................................76 

National Resources Sector Employment Taskforce: Technical Paper | v

vi | National Resources Sector Employment Taskforce: Technical Paper

1. Introduction 

This paper outlines the analysis undertaken to estimate the resources sector’s labour and 

skills needs on a national basis over the five years to 2015. The National Resources Sector 

Employment Taskforce was asked to: 

• examine major resources projects coming online over the next five years 

• provide an analysis of the sector’s labour and skills needs on a national basis over the 

next five years 

• analyse the expected supply of skilled labour from domestic sources and from 

migration 

• review skills gaps. 

1.1 Mapping resources projects 

The paper maps the major resources and energy projects that are expected to be built 

over the next five years, including their location and estimated construction and operation 

commencement dates. 

1.2 Demand for labour and skills 

The Taskforce has: 

• modelled three growth scenarios for the construction of resources projects—low, 

medium and high, based on the value of construction likely to go ahead 

• examined trends in demand for resources, as these influence demand for labour 

• estimated employment growth in mining operations 

• modelled four growth scenarios for the gas sector for Queensland and three for 

Western Australia 

• estimated wastage (replacement demand) for the mining operations and gas sectors 

• tested the outcomes with stakeholders 

• reviewed advice from industry reports and responses through its industry survey, 

consultations and from submissions received on the extent of skills demand in the 

resources sector. 

1.3 Supply of labour and skills 

Skills for the resources sector can come from: 

• the existing stock of skilled workers in the national labour market—including the 

unemployed and the employed 

• new supplies of skilled workers or job seekers, including from vocational education and 

training, higher education, and temporary and permanent migration. 

The Taskforce engaged the National Centre for Vocational Education Research (NCVER) to 

estimate the future supply of trade skills, and the Department of Education, Employment and 

Workplace Relations (DEEWR) estimated the supply of professionals in skills relevant to the 

resources sector. The NCVER report is available at www.deewr.gov.au/nrset. 

National Resources Sector Employment Taskforce: Technical Paper | 1

1.4 Skills gaps 

The Taskforce reviewed potential skills gaps for the resources sector, taking into account 

the analysis of demand and supply, as well as advice from industry through consultations, 

submissions and the Taskforce’s industry survey. 

In their submissions to the Taskforce, both the Maritime Union of Australia and the 

Australian Institute for Marine and Power Engineers raised workforce planning issues for 

the maritime industry and the current shortage of marine engineers. The Taskforce notes 

DEEWR is separately addressing the issue of demand for maritime skills through 

an industry survey. 

2 | National Resources Sector Employment Taskforce: Technical Paper

2. Projects 

This chapter outlines major resources projects expected to commence construction and/or 

come into production over the next five years. 

The Australian Bureau of Agricultural and Resource Economics (ABARE) compiles a list of major 

minerals and energy projects expected to be built over the following five years or so. Every 

six months, ABARE updates this list, using publicly available information from the Australian 

Stock Exchange, companies’ financial reports and companies’ websites. Projects included on 

the list have a minimum value of $40 million, with $20 million for gold projects. The Taskforce 

used the April 2010 version of the list as a starting point to analyse expected projects. The list 

includes 361 projects, comprising: 

• 230 new projects 

• 121 projects related to the expansion of existing activities 

• 10 redevelopments, upgrades or refurbishments (Taskforce analysis of 

ABARE unpublished data). 

Since the most recent release of the ABARE list, there have been some major announcements 

not captured in the Taskforce’s analysis, including BHP’s potential new $24 billion liquefied 

natural gas (LNG) project in Western Australia, announced on 24 May 2010. These and other 

announcements will continue to be monitored by ABARE in the preparation of its future 

reports on minerals and energy projects. 

2.1 Projects underway or in the pipeline 

The ABARE list provides a guide to the resources projects that are reasonably certain of going 

ahead, although slippages in project timelines occur frequently. At the end of April 2010, 

ABARE identified 75 major projects that were at an advanced stage of development, with a 

value of $109.6 billion. Projects in this category are either ‘committed’ or ‘under construction’. 

The distribution of these projects around Australia is shown in Figure 1. 


Figure 1: Advanced projects by location 

Kitan oil 

Montara/Skua oil 

Darwin 

Karara hematite 

and magnetite iron ore 

Extension Hill DSO iron ore 

Dampier–Bunbury 

5B gas pipeline 

Kwinana Processing Plant 

TiO 2 pigment titanium minerals 

Worsley Refinery Efficiency & 

Growth Project alumina 

LEGEND 

NWS North Rankin B LNG 

NWS CWLH oil 

Pluto LNG 

Gorgon LNG 

Sino Iron Project iron ore 

Capital expenditure 

$0–100m 

$101–500m 

$501–1000m 

>$1000m 

Processing 

facility 

Mine/ 

platform 

Reindeer gas field, 

Devil Creek gas processing plant 

Utah Point Berth 

iron ore infrastructure 

Charters Towers gold 

Argyle diamonds 

Ernest Henry 

underground copper 

Abbot Point coal infrastructure 

Western Australian 

Iron Ore infrastructure 

Goonyella to Abbot Point X50 coal infrastructure 

Nullagine iron ore 

Coppabella to Ingsdon 

Boyne Island smelter aluminium 

Rapid Growth 5 iron ore 

rail duplication coal infrastructure 

Chichester hub 55 iron ore 

Moranbah Ammonium Nitrate 

Integrated Isaac Plains Project coal 

Middlemount (stage 1) coal 

Nicholas Downs manganese 

Clermont coal 

Yarwun refinery stage 2 alumina 

Brockman 4 

Kestrel coal 

Rocklands to Kabra rail duplication coal infrastructure 

Project iron ore 

Talc redesign 

South West Queensland Curragh coal Blackwater System 

nickel 

Pipeline (stages 2 and 3) 

Power Upgrade coal infrastructure 

Moomba to Sydney gas pipeline 

Queensland gas pipeline 

Duketon gold 

Edna May gold 

gas pipeline 

Talinga stage 2 coal seam gas 

St Ives (Athena underground) gold 

Brisbane 

Cameby Down coal 

Boggabri opencut coal 

Mt Weld rare earths 

Brisbane coal terminal expansion 

Mount Arthur coal 

Darling Range Super Pit gold Eucla Basin 

Narrabri (stage 1) coal 

North DSO 

mineral sands Honeymoon Moolarben stage 1 coal 

Minimbah Bank Third Rail Line (stage 1) 

bauxite Aldiss/Randalls 

uranium 

Northparkes 

coal infrastructure 

Perth (phase 1) gold 

Snapper E48 copper 

Blakefield South coal 

mineral 

Mangoola coal 

Adelaide sands 

Sydney Kooragang island coal terminal 

Cadia East gold 

Canberra expansions 

Newcastle export terminal coal infrastructure 

Mount Cattlin 

lithium 

Melbourne 

Metropolitan longwall coal 

Eastern gas pipeline 

BassGas 

Turrum gas 

(Yolla Mid Life Enhancement) 

Kipper (stage 1) gas 

natural gas 

proposed gas pipeline 

capital city 

Micro 

LNG plant 

Hobart 

Source: Lampard 2010 

As Table 1 shows, Western Australia’s 29 advanced projects account for $86 billion worth of 

investment (79 per cent). Projects include Gorgon LNG, Pluto LNG, BHP Billiton’s Rapid Growth 

Project 5, North West Shelf North Rankin B, Sino Iron Project, and Worsley Efficiency and 

Growth Project. The projects range in value from $2 billion to $43 billion. 

Table 1: 

Advanced projects, number, cost ($ million), sector and state and territory, 

April 2010 

Energy projects 

No. 

Cost 

($m) 

No. 

Mining 

Cost 

($m) 

Minerals 

processing 

No. 

Cost 

($m) 

No. 

Total 

Cost 

($m) 

Western Australia 6 64,111 21 19,688 2 2,620 29 86,419 

Queensland* 16 6,807 3 1,646 3 2,860 22 11,313 

New South Wales* 13 5,158 3 2,232 0 0 16 7,390 

Northern Territory 2 795 0 0 0 0 2 795 

South Australia 1 138 1 390 0 0 2 528 

Victoria 2 2,670 0 0 0 0 2 2,670 

Tasmania 1 345 0 0 1 150 2 495 

Australia 41 80,024 28 23,956 6 5,630 75 109,610 

Source: Taskforce analysis of Lampard 2010 

* Some projects cross state borders 


ABARE’s list also identifies 286 less advanced projects with a value of $249.9 billion. Projects 

in this category are either undergoing a feasibility study or have not yet been subject to a 

Final Investment Decision. 

Figure 2 shows less advanced projects are spread more broadly across Australia, although 

64 per cent are split between Western Australia and Queensland. 

Figure 2: Less advanced projects–state share Australia, April 2010 

100 

90 

80 

90 

91 

Number of projects 

70 

60 

50 

40 

30 

20 

51 

20 

22 

10 

0 

8 

4 

Western Australia Queensland * New South Wales* Northern Territory South Australia Victoria 

Tasmania 

States and territories 

* some projects cross state borders 

Source: Taskforce analysis of ABARE unpublished data 

2.2 Project timing 

The ABARE list contains an expected operations commencement date but not a construction 

commencement date. For the purpose of this section the Taskforce relied on additional sources 

(including companies, state governments and submissions) and made some assumptions 

about the length of time required for particular activities. The Taskforce has assumed the 

construction of a LNG train takes three years and construction of mining operations takes 

18 months. 

Figure 3 shows when the advanced and less advanced projects identified by ABARE are likely 

to commence construction and the expected construction duration. Production is assumed to 

commence immediately upon completion of construction. 


Appendix IV—Schedule of advanced and less 

advanced projects by state 

Figure 3: Scheduling for advanced and less advanced projects 

Pluto (train 1) - WA 

WA 

NWS CWLH - WA 

QLD 

Reindeer gas field/Devil Creek gas processing plant (phase 1) - WA 

Mt Cattlin - WA 

NSW 

Duketon Gold Project - WA 

NT 

Edna May - WA 

SA 

Karara hematite mine - WA 

Kwinana TiO2 pigment plant (stage 1) - WA 

VIC 

Nicholas Downs - WA 

TAS 

Nullagine iron ore project - WA 

Super Pit - WA 

Mt Weld - WA 

Hamersley Iron Brockman 4 project (Phase A) - WA 

Dampier–Bunbury gas pipeline (DBNGP) expansion (Stage 5B) - WA 

Aldiss/Randalls (phase 1) - WA 

Darling Range North DSO - WA 

Utah Point Berth Project - WA 

Chichester Hub 55 - WA 

Karara magnetite mine - WA 

Sino Iron Project - WA 

Extension Hill Direct Shipping Ore (DSO) project - WA 

NWS North Rankin B - WA 

St Ives (Athena underground) - WA 

Talc Redesign Project (Mount Keith) - WA 

Western Australian Iron Ore infrastructure - WA 

Western Australian Iron Ore Rapid Growth Project 5 (RGP5) - WA 

Worsley refinery Efficiency and Growth project (Worsley Alumina Development Capital Projects) - WA 

Gorgon LNG - WA 

Argyle underground development (diamonds) - WA 

Halyard - WA 

Coniston / Novaro (tie back to Van Gogh) - WA 

Pluto (train 2 and 3) - WA 

Abydos iron ore project - WA 

Brunello / Julimar (supply for Wheatstone LNG project) - WA 

Macedon - WA 

Scarborough Gas - WA 

South Laverton (Stage 2) - WA 

Windimurra vanadium project - WA 

Yilgarn iron ore project stage 1 (Carina) - WA 

Dongara - WA 

Bundarra - WA 

Koongie Zinc Copper Project - WA 

Leonora Gold project - WA 

Norseman Gold project - WA 

Paddington (Enterprise) - WA 

Parker Range iron ore project - WA 

Phillips River - WA 

Railway Iron Ore Project - WA 

Lennard Shelf - WA 

Murchison - WA 

Murrin Murrin Heap Leach Expansion project - WA 

Keysbrook - WA 

Nullagine Gold project - WA 

Balla Balla project (Phase I) - WA 

Balmoral South magnetite project (stage 1) - WA 

Yilgarn rail project - WA 

Barrambie vanadium project - WA 

Bill Hill - WA 

Canegrass - WA 

Cosmos Project (includes Alec Mairs 2 deposits) - WA 

Darling Range South DSO - WA 

Extension Hill magnetite project - WA 

Spotted Quoll (underground) - WA 

Gullewa (Deflector gold- copper project) - WA 

Jack Hills project (stage 2) - WA 

Browse LNG development - WA 

Anketell Point port - WA 

Burrup ammonium nitrate plant - WA 

Canning Basin project - WA 

Chichester Hub 95 - WA 

Marillana - WA 

Lake Maitland / JAURD / Itochu - WA 

Ichthys gasfield (incl Darwin LNG plant) - WA 

NiWest Nickel Laterite Heap Leach project - WA 

Panorama (Sulphur Springs) zinc-copper open cut - WA 

Perseverance Deeps - WA 

Port Hedland - WA 

Roy Hill (includes mine, rail and port) - WA 

Southdown Magnetite iron ore project - WA 

Tropicana Joint Venture Project - WA 

Weld Range - WA 

West Pilbara - WA 


Wiluna Uranium Project - WA 

Yalgoo Iron Project - WA 

6 | National Resources Sector Employment Taskforce: Technical Paper 

2010 2014 2018

Marillana - WA 

Lake Maitland / JAURD / Itochu - WA 

Ichthys gasfield (incl Darwin LNG plant) - WA 

NiWest Nickel Laterite Heap Leach project - WA 

Panorama (Sulphur Springs) zinc-copper open cut - WA 

Perseverance Deeps - WA 

Port Hedland - WA 

Roy Hill (includes mine, rail and port) - WA 

Southdown Magnetite iron ore project - WA 

Tropicana Joint Venture Project - WA 

Weld Range - WA 

West Pilbara - WA 


Wiluna Uranium Project - WA 

Yalgoo Iron Project - WA 

Dampier Nitrogen project (ammonia/urea/ ammonium nitrate) - WA 

East Pilbara Project (Robertson Range and Davidson Creek) - WA 

Kemerton alumina refinery - WA 

Oakajee Port & Rail infrastructure - WA 

Yeelirrie - WA 

Prelude (floating LNG) - WA 

Wheatstone LNG - WA 

Admiral Bay - WA 

Great Northern Pipeline - WA 

Hardey - WA 

Lindsays, Brilliant, Kalpini - WA 

Nullagine (Blue Spec) - WA 

Spinifex Ridge molybdenum/copper project - WA 

Wingellina - WA 

Balla Balla project (Phase II) - WA 

Cape Lambert port expansion - WA 

Hamersley Iron Brockman 4 project (Phase B) - WA 

Sherlock Bay - WA 

Solomon Hub (Stage II) - WA 

Sorby Hills - WA 

Wiluna West (stage 1) - WA 

Coburn - WA 

Kalgoorlie Nickel project - WA 

Ridley Magnetite project - WA 

Swan River (Kerrigan) kaolin project - WA 

Yerilla - WA 

Dampier–Bunbury gas pipeline (DBNGP) expansion (stage 5C) - WA 

Diggers South - WA 

Cape Lambert iron ore project - WA 

Solomon Hub (Stage I) - WA 

Western Turner Syncline - WA 

Balmoral South magnetite project (stage 2) - WA 

New Morning/ Daybreak - WA 

Wagerup refinery expansion – Unit 3 - WA 

Clermont opencut - QLD 

Brisbane Coal Terminal expansion - QLD 

Coppabella to Ingsdon rail duplication - QLD 

Boyne Island Smelter - QLD 

Queensland Gas Pipeline - QLD 

Talinga Stage 2 - QLD 

Cameby Downs - QLD 

Intergrated Isaac Plains Project - QLD 

Boyne Island Smelter - QLD 

Middlemount (stage 1) - QLD 

Abbot Point Coal Terminal X50 expansion - QLD 

Abbot Point Coal Terminal yard refurbishment - QLD 

Curragh Mine - QLD 

Blackwater System Power upgrade - QLD 

Rocklands to Kabra rail duplication - QLD 

Goonyella to Abbot Pt (rail) (X50) - QLD 

Kestrel - QLD 

Moranbah Ammonium Nitrate Project - QLD 

South West Queensland pipeline (stage 2 and 3) - QLD 

Charters Towers - QLD 

Ernest Henry underground - QLD 

Yarwun alumina refinery expansion (CAR Stage 2) - QLD 

Dingo to Walton rail duplication - QLD 

Fisherman's Landing LNG project - QLD 

Anduramba Molybdenum - QLD 

Aurukun bauxite mine - QLD 

Black Star Open Cut Deeps - QLD 

Daunia - QLD 

Westmoreland - QLD 

Lucky Break - QLD 

Micro LNG plant - QLD 

Olive Downs North - QLD 

Rocklands Copper project - QLD 

Middlemount (stage 2) - QLD 

Mt Garnet - QLD 

North Queensland nickel-cobalt project (Nornico - stage 1) - QLD 

Roseby Copper project (phase 1) - QLD 

Lions Way pipeline - QLD 

Ensham bord and pillar underground mine - QLD 

Agate Creek - QLD 

Einasleigh Copper project - QLD 

Curtis LNG project - QLD 

Gladstone LNG project - QLD 

Shell Australia LNG - QLD 

Cloncurry Copper project - QLD 

Drake Coal project - QLD 

Surat Basin Rail (Southern Missing Link) - QLD 

Surat Gas Project - QLD 

Washpool coal project - QLD 




Lions Way pipeline - QLD 

Ensham bord and pillar underground mine - QLD 

Agate Creek - QLD 

Einasleigh Copper project - QLD 

Curtis LNG project - QLD 

Gladstone LNG project - QLD 

Shell Australia LNG - QLD 

Cloncurry Copper project - QLD 

Drake Coal project - QLD 

Surat Basin Rail (Southern Missing Link) - QLD 

Surat Gas Project - QLD 

Washpool coal project - QLD 

Mount Morgan tailings project - QLD 

Valhalla - QLD 

China First Coal project (Waratah Galilee) - QLD 

George Fisher - QLD 

Grosvenor underground - QLD 

Hail Creek expansion - QLD 

Byerwen Coal Project - QLD 


Alpha Coal Project - QLD 

Australian Iron and Steel Project (stage 1) - QLD 

CHALCO alumina refinery (linked to Aurukun bauxite mine) - QLD 

Caval Ridge (Peak Downs expansion) - QLD 

Dugald River - QLD 

Lady Loretta - QLD 

Lake Vermont - QLD 

Moura Link - Aldoga Rail - QLD 

Fisherman's Landing LNG project - QLD 

Kevin's Corner - QLD 

Marborough Heap Leach project - QLD 

Mount Carbine - QLD 


Surat Basin to Gladstone pipeline - QLD 

Walloon gas field - QLD 

Weipa - QLD 

Wiggins Island Coal Terminal (stage 1) - QLD 

Wilkie Creek - QLD 

Wonbindi - QLD 

Woori - QLD 

Australia Pacific LNG - QLD 

Balaclava Island coal terminal - QLD 

Eagle Downs (Peak Downs East underground) - QLD 

Hay Point Coal Terminal Phase 3 - QLD 

Jellinbah East - QLD 

Moranbah South project - QLD 

New Acland (stage 4) - QLD 


QAL refinery expansion - QLD 

Red Hill underground - QLD 

Sarum - QLD 

Wandoan opencut - QLD 

Australian Iron and Steel Project (stage 2) - QLD 

Codrilla - QLD 

Ellensfield coal mine project - QLD 

Monto coal mine (stage 1) - QLD 

Pisolite Hills - QLD 


Gladstone Nickel project (stage 1) - QLD 

Georgina Basin Phosphate project - QLD 

Kunioon - QLD 

Mt Carlton (Silver Hill) - QLD 

Watershed Tungsten project - QLD 

Belvedere underground - QLD 

Millennium expansion - QLD 


Mungana & Red Dome - QLD 

Vermont East/Wilunga - QLD 

Winchester South - QLD 

Central Queensland gas pipeline - QLD 

Gladstone Nickel project (stage 2) - QLD 

Dawson South (stage 2) - QLD 

Ensham Central longwall underground - QLD 

Goonyella Riverside Expansion - QLD 

Monto coal mine (stage 2) - QLD 


Minimbah Bank Third Rail Line (stage 1) - NSW 

Moolarben stage 1 - NSW 

Eastern Gas Pipeline* - NSW 

Kooragang Island coal terminal expansion - NSW 

Moomba to Sydney* - NSW 

Narrabri Coal Project (stage 1) - NSW 

NCIG export terminal (Newcastle Coal Infrastructure Group) - NSW 

Northparkes (E48 development) - NSW 

Snapper (stage 2 of Pooncarie mineral sands project) - NSW 

Blakefield South - NSW 

Mount Arthur opencut (MAC20) - NSW 


Mangoola (Anvil Hill opencut) - NSW 

Metropolitan longwall - NSW 

Cadia East - NSW 

Boggabri opencut - NSW 

8 | National Resources Sector Employment Taskforce: Technical Paper 

Bickham opencut - NSW 

Hera - NSW 

Hunter Valley Operations Expansion - NSW 

Camden Gas Project stage 3 (coal seam gas) - NSW

NCIG export terminal (Newcastle Coal Infrastructure Group) - NSW 

Northparkes (E48 development) - NSW 

Snapper (stage 2 of Pooncarie mineral sands project) - NSW 

Blakefield South - NSW 

Mount Arthur opencut (MAC20) - NSW 


Mangoola (Anvil Hill opencut) - NSW 

Metropolitan longwall - NSW 

Cadia East - NSW 

Boggabri opencut - NSW 

Bickham opencut - NSW 

Hera - NSW 

Hunter Valley Operations Expansion - NSW 

Camden Gas Project stage 3 (coal seam gas) - NSW 

Minimbah Bank Third Rail Line (stage 2) - NSW 

Cowal - NSW 

ERMS synthetic rutile plant - NSW 

Gloucester Coal Seam gas project - NSW 

South East opencut - NSW 

Kooragang Island ammonium nitrate facility - NSW 

Majors Creek - NSW 

Mount Arthur North underground - NSW 

Narrabri Coal Project (stage 2) - NSW 

Rasp mine project - NSW 

Tomingley (Wyoming) gold project - NSW 

Gloucester Coal Seam Gas pipeline - NSW 

2 Export Terminal Arrival Tracks - NSW 

Nundah Bank 3rd Road (rail) - NSW 

Camden Gas Project stage 2 (coal seam gas) - NSW 

Drayton mine extension - NSW 

Dubbo Zirconia project - NSW 

Kempfield - NSW 

Ulan West - NSW 

Western Rail Coal Unloader - NSW 

Wongawilli Colliery - NSW 

Maules Creek - NSW 

Austar underground (Stage 3) - NSW 

Bowden’s silver project - NSW 

Casino project - NSW 

Newstead to Bulla Park* - NSW 

Prungle (Karra) - NSW 

Queensland–Hunter gas pipeline* - NSW 

Twelve Mile - NSW 

Woodlawn tailings retreatment project - NSW 

Woodlawn underground redevelopment - NSW 

Liverpool Range rail project - NSW 

Mount Pleasant Project - NSW 

Ravensworth North - NSW 

Wallarah underground longwall - NSW 

Kingsgate Molybdenum-Bismuth project - NSW 

Moorilda (McPhillamys) - NSW 

North Mine Deeps - NSW 

Saddler's Creek underground and opencut - NSW 

Copper Hill project - NSW 

Duralie Extension project - NSW 

NRE No. 1 Colliery - NSW 

Warkworth extension - NSW 

NRE No. 1 Colliery (preliminary works project) - NSW 

Potosi (stages 2 and 3) - NSW 

Wellington Power Station Pipeline - NSW 

Moolarben (stage 2) - NSW 

Kitan - NT 

Montara/Skua oilfield - NT 

Puffin oil field - NT 

Talbot oil field - NT 

Condensate processing facility - NT 

Crux liquids project - NT 

Central Tanami - NT 

Molyhil (tungsten) - NT 

Wonarah Phosphate Rock Project - NT 

Ranger pit extension - NT 

Nolans project - NT 

Redbank Copper project - NT 

Bigrlyi - NT 

Timor Sea LNG project - NT 

Darwin iron ore berth - NT 

Sunrise Gas project - NT 

Bonaparte LNG (floating) - NT 

Tassie Shoal methanol project - NT 

Browns Sulphide project (expansion of Browns Oxide project) - NT 

Ranger heap leach facility - NT 

Tanami project - NT 

Mt Todd - NT 

Eucla Basin (Jacinth and Ambrosia deposits) - SA 

Honeymoon - SA 

Crocker Well and Mount Victoria - SA 

Kanmantoo - SA 

Four Mile - SA 

Kalkaroo - SA 

Oban ISR operation - SA 

Willcherry Hill (Stage 1) - SA 

Peculiar Knob - SA 

Port Bonython Fuel storage - SA 

Port Lincoln - SA 

Port Bonython - SA 

Cairn Hill iron ore copper gold project - SA 


Mutooroo - SA 


Honeymoon - SA 

Crocker Well and Mount Victoria - SA 

Kanmantoo - SA 

Four Mile - SA 

Kalkaroo - SA 

Oban ISR operation - SA 


Peculiar Knob - SA 

Port Bonython Fuel storage - SA 

Port Lincoln - SA 

Port Bonython - SA 

Cairn Hill iron ore copper gold project - SA 


Mutooroo - SA 

Mt Gee - SA 

Mt Gunson - SA 

Reliance deposit - SA 

Hawks Nest Magnetite Project - SA 

Olympic Dam expansion stage 1 - SA 


Olympic Dam optimisation - SA 

Olympic Dam Smelter expansion - SA 


Kipper gas project (stage 1) - VIC 

Turrum - VIC 

West Seahorse - VIC 

Donald - VIC 

Latrobe magnesium project - VIC 

Monash Energy project - VIC 

Kipper gas project (stage 2) - VIC 

Basker, Manta and Gummy oil development - VIC 

Basker, Manta and Gummy gas development - VIC 

WIM 150 zircon/ titanium project - VIC 

Micro LNG plant - TAS 

BassGas (Yolla Mid Life Enhancement) - TAS 

Barnes Hill - TAS 

King Island Scheelite mine redevelopment - TAS 

Mt Lindsay - TAS 

Renison Expansion Project (Rentails) - TAS 

Source: Taskforce analysis of ABARE unpublished data 


3. Demand for labour and skills 

The Taskforce was asked to undertake an analysis of the resources sector’s labour and skills 

needs on a national basis over the next five years. Acknowledging that the number and scale 

of projects and the uncertainty of timing can affect projections, the Taskforce has: 

• modelled three growth scenarios for construction of resources projects—low, medium 

and high, based on the value of construction likely to go ahead 

• examined trends in demand for resources, as this will be a key influence on demand 

for skills, in the construction and operations phases of resources sector projects 

• modelled four growth scenarios for the gas sector—based on six, 10, 14 or 16 trains 

being built 

• estimated labour wastage (replacement demand) for the mining operations and 

gas sectors at 10 per cent per annum, noting it is estimated retirements will account 

for 2 per cent per annum. The Taskforce did not model replacement demand for 

the construction sector, noting the average employment in the four quarters to 

February 2010 in the construction workforce is 981,800 (ABS 2010a) and the resources 

construction workforce is a small portion of this overall workforce 

• tested the outcomes with the Western Australian and Queensland state governments 

and industry associations 

• reviewed advice from industry reports, its industry survey, consultations and 

submissions about the extent of skills demand. 

The modelling suggests the: 

• number of short-term construction jobs is likely to peak at around 45,000 during 

2012 and 2013, with strong jobs growth for technicians, tradespeople and machinery 

operators and drivers 

• number of new jobs in mining operations is expected to increase by 4.9 per cent per 

annum, creating around 61,500 new jobs by 2015 

• replacement demand in mining operations could be around 16,000 people per annum, 

including approximately 3,000 people retiring per year 

• the number of new jobs in gas operations will be between 1,800 and 3,200. 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 people per annum, 

including approximately 500 people retiring per year. 

Modelling outcomes were discussed with the Western Australian Department of Training and 

Workforce Development on 19 May 2010, and the Queensland Department of Employment, 

Economic Development and Innovation, and the Queensland Department of Education and 

Training, on 25 May 2010. Both states supported the methodology used and considered the 

modelling outcomes broadly consistent with their own analysis. 


3.1 Trends in demand for resources 

Demand for labour in the resources sector depends on the demand for resources. There 

are two distinct elements: demand for labour for the construction phase and for the 

operation phase. 

Much of the demand for resources comes from export markets, so developments in those 

markets have a major influence on demand and, in turn, demand for skills. The Reserve Bank 

of Australia (RBA) and the Australian Treasury have recently drawn attention to strong current, 

and likely future, overseas demand for resources sector products. 

In its May 2010 Statement on Monetary Policy, the RBA noted mining investment has been at 

record levels as a share of GDP, with further increases expected: 

…outlook for mining sector investment has strengthened over the past year, 

underpinned by further large increases in bulk commodity prices and an expectation 

that demand for raw materials from China and other emerging economies will grow 

solidly in the medium term. Mining investment is at a historically high level, well above 

the peaks of previous mining booms in the early 1980s and the late 1960s and early 

1970s, supported by large projects in the oil and gas, coal and minerals sectors. 

Figure 4 shows the growth of mining investment as illustrated by the value of mining 

engineering done over the past 20 years. 

RBA, 2010 

Figure 4: Mining engineering work done, per cent of nominal GDP, 1987–2009 

1 

0.8 

0.6 

0.4 

0.2 

0 

Jun-87 

Jun-89 

Jun-91 

(per cent) 

Jun-93 

Jun-95 

Jun-97 

Jun-99 

Jun-01 

Jun-03 

Jun-05 

Jun-07 

Jun-09 

Date 

Coal Oil and gas Minerals 

Sources: RBA analysis of ABS; RBA 2010 


The RBA suggested this large pipeline of work would result in a further substantial increase 

in mining investment over coming years. For its part, Treasury forecast new business 

investment will rise by 7 per cent in 2010–11, and by 12.5 per cent in 2011–12. Investment in 

machinery and equipment, and in engineering construction is expected to drive the recovery 

in business investment. Treasury noted mining-related investment is expected to drive this 

investment in engineering construction, with extremely robust growth of 19 per cent forecast 

in 2010–11 and 20.5 per cent in 2011–12. With strong growth expected in the LNG sector, and 

further major resource projects in the pipeline, Treasury anticipates engineering construction 

investment will continue to grow significantly as a share of total business investment over 

coming years (RBA 2010). 

Treasury further noted there are currently around a dozen large-scale LNG projects under 

construction, or active consideration in Australia, which have the potential to increase 

Australia’s LNG production capacity fourfold – although it should be noted that Australia has 

never before supported construction of more than two gas trains concurrently and such an 

expansion has never occurred anywhere in the world beyond Qatar. 

3.2 Demand for construction labour and skills 

3.2.1 Modelling approach 

DEEWR prepares annual updates of employment projections for industries for each five-year 

period, the latest being to 2014–15. The projections are an annual average for the five years. 

These are based in part on economic models, including models by Access Economics and the 

Monash model developed by the Centre of Policy Studies at Monash University, but also take 

into account recent employment trends and prospective industry developments. In the five 

years to 2014–2015, projections show employment in the construction industry growing at an 

average rate of 2.4 per cent per year. This compares with an average annual growth rate of 

1.8 per cent across all industries over the same period (DEEWR 2010a). 

However, the scale of investment in resources projects has grown dramatically in recent 

years. As noted by Richardson (2010), in real terms the volume of engineering construction in 

Australia increased from $9.5 billion in 2000–01 to $47.6 billion in 2008–09. The anticipated 

scale of resources sector project construction in the next five years identified by ABARE and 

considered by the RBA in its May 2010 statement on monetary policy and by Treasury in the 

2010–11 Budget papers is unprecedented. 

This suggests using employment projections for the whole construction sector, to estimate 

potential growth in resources construction, would be inappropriate. 

The Taskforce has therefore modelled an alternative approach to estimating the demand for 

labour over the next five years. It involved using a typical construction industry occupational 

profile for a given value of construction and then applying it to the expected value of major 

resources project construction activity as identified by ABARE. The latest data suggests 958 

employees are required per $1 billion expenditure on heavy engineering construction. 


Three growth scenarios were modelled for construction employment—low, medium and high 

based on the known value of construction (283 projects have a value and 78 projects have 

no value attributed to them). The Taskforce considers projects with no listed value may not 

commence construction by 2015 (ABARE unpublished data): 

• The low-growth scenario is based on all advanced projects proceeding (75 projects). 

• The medium-growth scenario is based on all advanced projects plus 27 per cent of the 

value of less advanced projects (ie 50 per cent of the value of all projects on the ABARE 

database) proceeding. 

• The high-growth scenario is based on all advanced projects plus 63.5 per cent of the 

value of less advanced projects (ie 75 per cent of the value of all projects on the ABARE 

database) proceeding. 

The Taskforce then projected on this basis against the anticipated value of major resources 

projects and assumed demand for skills, at an occupational level (see Appendix I), that mirrors 

recent overall employment in engineering construction. Modelling includes the small number 

of projects likely to commence construction in 2016. 

3.3 Modelling outcomes 

It is important to note construction jobs on resources projects can last from a few months to a 

few years, and over the period 2010–2016 construction workers are likely to have a number of 

jobs as they move from project to project. Overall projections for employment are as follows: 

• low-growth scenario with a peak of around 30,000 jobs during 2010 and 2011 and 

102,000 short-term project jobs over the period 2010 to 2016 

• medium-growth scenario with a peak of around 45,000 jobs during 2012 and 2013 and 

170,000 short-term project jobs over the period 2010 to 2016 

• high-growth scenario with a peak of around 70,000 jobs during 2012 and 2013 and 

255,000 short-term project jobs over the period 2010 to 2016. 


Demand for labour by year for project construction 

Figure 5 gives estimates of the potential number of construction workers required by the 

resources sector by year according to planned project capital expenditure over 2010 to 2015. 

For each of the projects the Taskforce estimated the construction periods using both known 

and estimated dates of operation and number of construction workers by capital expenditure. 

The Taskforce suggests the medium-growth scenario is most likely. It notes 60 of the 75 

advanced projects are already under construction, and the remaining 15 are committed and 

generally expected to commence construction within the next two years. In terms of the 

less advanced projects, history indicates many are delayed as they go through the various 

approvals processes leading to a Final Investment Decision. Under this scenario, employment 

will gather momentum and peak in 2012 and 2013 possibly at around 45,000 jobs. The decline 

in estimated construction employment from 2014 is a result of uncertainty surrounding 

forward project activity and not necessarily indicative that construction activity will slow 

dramatically. 

Figure 5: Estimated construction employment by year–three growth scenarios 

100 000 

90 000 

80 000 

Number of jobs 

70 000 

60 000 

50 000 

40 000 

30 000 

20 000 

10 000 

0 

2010 2011 2012 2013 2014 2015 

Year 

Low growth scenario Medium growth scenario High growth scenario 

Source: Taskforce estimates based on ABARE unpublished data 

Projections by occupation—construction skills 

Projections by occupation are shown in Table 2. The Taskforce notes most construction jobs 

will be short term and workers may move from job to job. Under each scenario, most 

additional demand for construction skills is projected to be for technicians and tradespeople, 

machinery operators and drivers and labourers. The projections were modelled from a base 

year of 2009, the latest year where a known value of construction engineering work and a 

known workforce by occupation is available (ABS 2010a; ABS 2010b). 


Table 2: 

Projected demand for construction skills 

Projected short tem construction jobs 

over the period 2009–2016 

Occupation 

Low Medium High 

Managers 10,485 17,329 25,994 

Professionals 10,137 16,755 25,133 

Technicians and tradespeople 23,664 39,112 58,668 

Community and personal service workers 234 386 579 

Clerical and administrative workers 12,596 20,819 31,229 

Sales workers 842 1,391 2,086 

Machinery operators and drivers 21,892 36,184 54,275 

Labourers 21,452 35,456 53,184 

Other 1,679 2,776 4,163 

TOTAL 102,981 170,209 255,313 

Sources: Taskforce analysis of ABS 2010a and ABS 2010b 

Detailed projections by occupation arising from major project construction activity against 

this methodology are presented at Appendix I. Over the projection period, for all scenarios, 

there is likely to be strong demand for fabrication engineering tradespeople (including 

welders) plumbers, mechanical engineering tradespeople, electronics and telecommunications 

tradespeople and electricians. The projections also suggest strong demand for machine 

operators and truck drivers. These jobs will become available for various periods between 

2010 and 2016. 

Under the Taskforce’s medium-growth scenario, the maximum number of labourers required 

during the peak is likely to be around 9,000 (ie 20 per cent of all construction jobs). 

Consistency with state and territory projections for construction employment 

The Taskforce’s medium and high growth scenarios for construction labour demand are 

broadly consistent with projections prepared for the Western Australian Government by 

Pit Crew Management and Consulting Services (Pit Crew) and projections prepared by the 

Queensland Major Contractors Association (QMCA). 

Analysis by the Government of Western Australian 

The Government of Western Australian engaged Pit Crew to produce a six-monthly industry 

report forecasting the demand for labour on major construction and engineering projects in 

Western Australia over the next three to five years (the Pit Crew Report WA 2009 in Western 

Australia Department of Training and Workforce Development 2010). 

The Pit Crew report includes the outcomes of modelled construction labour demand for 

69 Western Australian projects with a total capital value of $169.2 billion. This includes 

$104.7 billion worth of projects already under construction or approved and that Pit Crew 

anticipates will proceed. By comparison, the ABARE database identifies 119 Western Australian 

projects in the advanced and less advanced stage. Not all projects have a current known value 

(ABARE 2010a). 


Figure 6 shows Pit Crew’s total construction labour demand forecast in December 2009 

compared to previous forecasts. If current forecast labour demand is correct, the need for 

labour would double from approximately 11,000 onsite now, to approximately 22,500 in late 

2012. The December 2007 (yellow) and June 2008 (green) lines represent previous forecasts of 

labour demand, which were significantly higher than actual labour demand. 

Figure 6: Forecast total construction labour demand in Western Australia, 

2009–10 to 2015–16 

30 000 

25 000 


20 000 

15 000 

10 000 

5 000 

0 

Jul-08 

Jan-09 

Jul-09 

Jan-10 

Jul-10 

Jan-11 

Jul-11 

Jan-12 

Jul-12 

Jan-13 

Jul-13 

Jan-14 

Jul-14 

Jan-15 

Date 

Dec-09 Dec-07 Jun-08 Jan-09 Jun-09 

Source: The Pit Crew Report WA 2009 in WA Department of Training and Workforce Development 2010 

Projections by Heuris Partners support the views of Pit Crew and the Taskforce, suggesting the 

workforce required in the Pilbara for resources construction will be 22,000 in 2010, rising to 

28,000 in 2012. In 2009 it was around 13,000 (Waller 2010). 

Analysis by the Queensland Major Contractors Association 

In April 2010, the Queensland Major Contractors Association (QMCA) noted the huge 

emerging demand arising from planned resources and energy sector projects for 

Queensland (QMCA 2010). 

QMCA stated that by 2011–2012, there will be significant potential for privately 

funded resource and energy sector projects to ‘fill the gap’ left by the anticipated 

reduction in public sector investment. The QMCA 2010 Major Projects List assumed 

a number of sizeable projects commencing in the coal seam methane to liquefied 

natural gas (CSM-LNG), mining, ports, rail and resources sectors. QMCA noted at the 

time of publication a significant level of uncertainty about the likely timing of Final 

Investment Decisions for a number of these projects. 


The outcome of the QMCA’s analysis for Queensland is shown in Figure 7. 

Figure 7: 2010 Major projects workforce demand—Queensland, 2009–10 to 2015–16 

25 000 

20 000 


15 000 

10 000 

5 000 

0 

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 

Year 

Construction Workforce Project Staff Total Resources 

Source: QMCA 2010 

Figure 7 includes expected workforce demand for resources and other construction projects. 

Should the current planned mine, ports, rail and resources infrastructure projects proceed 

in parallel with the CSM-LNG energy projects as currently predicted, QMCA suggests major 

contractors will need to increase their overall capacity from 10,760 employees (2010–11 fourquarter 

average) to 23,660 in 2012–13. Overall levels of project staff will need to increase by 

approximately 3,220 (120 per cent) and construction workers by 9,670 (120 per cent). QMCA 

also notes the steep fall off from 2013–14 is a result of uncertainty surrounding forward 

project activity and not necessarily indicative that construction activity will slow dramatically. 

The Taskforce’s medium-growth scenario is therefore broadly consistent with these state views. 

3.4 Mining production 

Demand for operational skills in mining will increase over the period to 2015 and beyond. 

The key to this growth is export markets, especially in Asia. For example, ABARE data indicate 

Australia exports around two-thirds of its coal production (ABARE 2010). 

The world economy, including Australia’s key Asian export markets, appears to be 

strengthening. In its May 2010 statement on monetary policy, the RBA observed ‘the IMF 

[International Monetary Fund] now forecasts world output to expand by around 4 ¼ per cent 

in 2010, with a similar expansion in 2011’ (RBA 2010). 

The RBA also noted ‘the recovery in Asia has been particularly strong, and growth has also 

picked up in other emerging countries’ and stated ‘momentum in the Chinese economy 

remains strong and has shown few signs of slowing recently’. In the 2010–11 Budget papers, 

Treasury also noted strengthening commodity demand has been driven by a recovery in global 

industrial production. 


Treasury expects export volumes will increase in line with the anticipated recovery in 

global economic activity and grow by 5 per cent in 2010–11 and 6 per cent in 2011–12. 

Exports of non-rural commodities are expected to increase by 3.5 per cent in 2009–10, 

8 per cent in 2010–11 and 7.5 per cent in 2011–12. Treasury also noted, according to 

ABARE estimates, the value of Australia’s LNG exports is projected to reach $13.5 billion 

by 2014–15 (Australian Treasury 2010a). 

Projections of output and commodity prices 

In March 2010, ABARE published its projections on likely trends in output and commodity 

prices. Appendix II lists the ABARE projections in major resource commodities over the period 

to 2015. These show strong growth in production, largely to serve export markets. 

ABARE suggests further strong growth in commodity prices. Over its outlook period to 

2014–15, ABARE anticipates renewed demand from emerging economies such as China 

and India will continue to have a significant influence over energy and minerals 

commodity markets. 

ABARE also noted: 

• After falling considerably in early 2009, world prices for many energy and minerals 

commodities are forecast to recover in 2010 and 2011, supported by the improved 

outlook for world economic growth and the continued weakness of the US dollar. 

• Beyond 2011, prices are generally projected to decline in real terms but to remain 

above historical averages. 

• In the short term, supply capacity is expected to increase, although there could be 

challenges, such as higher project costs, price volatility and sovereign risk in some 

countries. 

• Australian export earnings from energy and minerals are projected to increase over 

the medium term, from $130 billion in 2009–10 to $175 billion in 2014–15 (in 2009–10 

dollars), supported by recovering world demand and prices (ABARE 2010). 

Higher commodity prices and the anticipated strong growth in resources sector output will 

likely see a significant rise in demand for labour. 

3.5 Demand for labour and skills in mining operations 

(excludes gas) 

3.5.1 Modelling approach—mining operation skills 

DEEWR’s latest projections for employment growth between 2009–2010 and 2014–2015 in the 

mining industry are based on an average rate of 3.3 per cent per annum, which equates to 

around 28,000 new jobs. Employment across all industries is forecast to grow at 1.8 per cent 

annually in the five years to 2014–2015 (DEEWR 2010b). 

The Taskforce has modelled projections of potential employment growth for mining 

operations based on the approach used by the National Institute of Labour Studies (NILS) 

(Lowry et al 2006) in preparing projections of employment growth on behalf of the Chamber 

of Mines in Western Australia in 2006 and subsequently for the Minerals Council of Australia in 

2008. This model appears to project recent employment changes reasonably well. 


NILS used the basis of projections of growth in output by commodity to model employment 

growth (Lowry et al 2006). For example growth in employment in coal mining in the base 

period, 2008, is assumed to be the same as the growth in output over the projections time 

period. Commodity projections from ABARE, Access Economics and BIS Shrapnel were 

averaged to gain a ‘consensus’ view on likely growth paths. 

The projections for employment growth for each commodity/industry are then aggregated to 

get overall industry employment at the end of the projection period. The approach assumes 

the occupational composition of jobs in mining remains static over the projection period and 

there is no change in labour productivity. 

The Taskforce notes it is possible to assume productivity improvements through more 

advanced mining techniques, which would reduce employment growth. It is also possible to 

assume productivity could fall given many projects now target more difficult ore deposits 

(Richardson 2010). On balance, the Taskforce assumed no change in labour productivity in 

modelling employment growth. 

3.5.2 Modelling outcomes—mining operations skills 

The NILS approach (Lowry et al 2006) suggests employment growth in mining operations of 

61,500 from 2008 to 2015, an average annual growth rate of 4.9 per cent per annum. 

Table 3 presents aggregated data on likely demand by occupation, with the largest growth 

expected to be for professionals, technicians and tradespeople, and machinery operators. 

Further modelling of employment growth, disaggregated by major cities and other places of 

employment, suggests around 25 per cent of mining industry professional employment growth 

will occur in capital cities and the main growth in regional areas will be for technicians and 

tradespeople, and for machinery operators and drivers (Taskforce analysis, unpublished 2010). 

Table 3: Projected employment in mining operations, 2015 

Occupation 

Base 

employment 

(2008) 

Employment 

growth 

Projected 

employment 

(2015) 

Managers 13,977 5,571 19,548 



Community and personal service workers 733 292 1,024 


Sales workers 597 238 835 


Labourers 8,140 3,244 11,384 

Other 1,675 667 2,342 

TOTAL 154,447 61,559 216,005 

Sources: ABS 2007; ABS 2010b 

Detailed projections of national demand for mining skills by occupation are presented at 

Appendix I. Key outcomes for technicians and tradespeople include projections of strong 

growth for mechanical engineering tradespeople, building and engineering technicians, 


electricians and fabrication engineering tradespeople. For machinery operators and 

drivers, there is likely to be strong growth in employment of stationary plant operators and 

truck drivers. 

Considered by state, the Taskforce projections suggest mining employment will rise by around 

25,500 in Western Australia and by around 15,000 in Queensland (see Appendix I). The 

projections may underestimate employment growth in resources in South Australia, where 

the South Australian Government’s Training and Skills Commission has estimated 5,000 new 

resources jobs by 2015. Empoyment growth in South Australia will depend on the timing of 

the expansion of the Olympic Dam Project (SATSC 2009). 

3.6 Gas operations 

3.6.1 Modelling approach—gas operations skills 

The main proposals for gas projects likely to be operational by 2015 are located in Western 

Australia and Queensland. It is not certain the proposed Inpex project in the Northern Territory 

will be operational by 2015. 

Employment growth in Western Australia and Queensland will depend on the number of 

LNG trains constructed by 2015, the location of trains and whether they are tied to existing 

infrastructure or are ‘greenfields’ projects. 

For employment growth in Queensland, the Taskforce has relied on modelling done by Energy 

Skills Queensland as it was developed in consultation with relevant project proponents. The 

Taskforce has forecast demand for gas operations skills in Western Australia in consultation 

with industry. 


3.6.2 Modelling outcomes—gas operations skills 

Energy Skills Queensland (ESQ) has projected new jobs growth by occupation, based on slow, 

moderate and rapid growth scenarios (Table 4). This modelling assumes base employment of 

1,000 people in all scenarios, that is, there were 1,000 people already employed in the industry 

in 2009. 

In Queensland all of the CSG/LNG projects will be greenfields. Owing to the nature of CSG 

technology, which requires significant numbers of drillers, each train will need between 550 

and 650 professional and technical staff during operations. 

Table 4: 

Energy Skills Queensland new jobs growth by occupation, Queensland, 

projections to 2015 

Occupational Groups 

by Skills and Activities 

Scenario A 

‘Slow Economic 

Growth’ 14/15 mtpa 

(4 Trains) 

Scenario B 

‘Moderate Economic 


(6 Trains) 

Scenario C 

‘Rapid Economic 


(8 Trains) 

2010 2015 2020 2010 2015 2020 2010 2015 2020 

ENGINEERING 

(Professional and 

Para-professional Skills) 205 340 373 341 580 630 374 715 756 

SCIENCE 

(Professional and 

Para-professional Skills) 73 68 75 109 103 113 124 133 149 

VOCATIONAL OCCUPATION 

(Technical Skills) 831 2,134 2,645 1,248 3,197 3,964 1,328 3,584 4,854 

Drilling 476 990 990 715 1,484 1,484 741 1,820 1,953 

Electrotechnology 

(Electrical) 35 146 232 53 218 347 61 253 447 

Field Construction 24 44 44 36 66 66 43 88 88 

Mechanical 

(Diesel Fitting) 75 201 274 113 301 410 128 309 482 

Process Plant Operations 190 682 1017 285 1022 1525 312 999 1724 

Water Management 

(Operations) 29 71 88 43 106 132 43 115 160 

VOCATIONAL OCCUPATION 

(Non Technical Skills) 205 378 453 306 567 680 198 677 857 

Occupational Health 

and Safety 38 84 104 56 126 156 68 154 190 

Cultural Heritage 67 85 80 100 127 100 82 169 162 

Admin/Logistics/ 

Transport/Warehouse 100 109 269 150 314 404 148 354 505 

UNSKILLED LABOUR 67 134 147 100 200 222 115 253 284 

OTHER 0 31 58 0 47 86 0 31 91 

Compliance and 

Shutdown Teams 0 31 58 0 47 86 0 31 91 

TOTAL DEMAND 1,381 3,085 3,752 2,104 4,694 5,659 2,239 5,393 6,991 

Source: Energy Skills Queensland (ESQ) 2009 


On the basis of ESQ’s modelling, the Taskforce considers that if only two trains become 

operational by 2015, the number of professional and technical staff needed for operations in 

Queensland will be around 1,200. 

The Taskforce based employment projections for Western Australia on consultations with 

the Australian Petroleum Production & Exploration Association (APPEA) and industry 

representatives. Differences in the extraction process means there is a different employment 

profile in Western Australia. 

In Western Australia, the number of employees required per train will depend on the 

workforce model adopted (ie fly-in/fly-out (FIFO), residential or a mix of the two) and the 

number of greenfields projects. When an additional LNG train is built alongside an existing 

train (a brownfields development), it requires significantly fewer operational employees due 

to existing processes, work flows and team capability. 

Discussions with industry suggest the number of employees required for a train at a 

greenfields site can range from around 150 to 300 depending on whether the workforce 

is residential, a mix of residential and FIFO, or all FIFO. A typical workforce includes plant 

operators (around 50 per cent), maintenance technicians (mechanical and electrical trades — 

around 35 per cent) and engineering professionals and paraprofessionals (around 15 per cent). 

Additional trains in the same LNG brownfields development require about 10 to 20 per cent of 

the number of employees required for the first train. 

Table 5 shows the number of operational positions required by 2015 under three growth 

scenarios for Western Australia. Estimates assume: 

• The first two projects are greenfields and require 260 onsite employees per train. 

• The remaining projects are brownfields (additional trains in an existing site) and 

require between 25 and 50 employees per train. 

Table 5: 

Growth scenarios for Western Australia (4, 6 and 8 trains) 

Estimated employment breakdown per train 

Low-growth 

scenario 

(4 trains) 

Mediumgrowth 

scenario 

(6 trains) 

High-growth 

scenario 

(8 trains) 

Operators 300 335 375 

Maintenance technicians (mechanical/electrical trades) 210 235 365 

Engineering 90 100 110 

TOTAL 600 670 750 

Source: Taskforce analysis based on industry advice 

These estimates do not include supporting roles such as logistics, catering and security. 

The Taskforce considers it likely there will be two to four new trains operating in Queensland 

by 2015, and four to six new trains in Western Australia. This would create between 1,200 and 

2,500 professional and trade jobs in operations in Queensland and between 600 and 700 in 

Western Australia. 


These estimates do not account for any increase in employment in Western Australia’s offshore 

LNG industry. Employment growth offshore is expected to be low, so the Taskforce has not 

attempted to make any projections. The number of new jobs will depend on the development 

concepts that are approved. 

Companies in the gas sector predicted a growth in demand for occupations across the entire 

scope of operations and maintenance, as the sector rapidly expands in new fields, such as CSG. 

A LNG train typically takes three years to build, so the operational workforce is expected to 

grow significantly from 2013 to 2015. 

3.7 Replacement demand 

Over time, people leave their current jobs for jobs in the same industry (turnover) or they leave 

the industry for another industry or to retire (replacement demand). There is limited data 

available concerning these movements. 

Turnover 

SkillsDMC (2010) has estimated turnover rates for a range of sectors including drilling (29 per 

cent), quarrying (17 per cent), and mining (13.3 per cent). 

Twenty of the 34 resources companies that responded to the National Resources Sector 

Employment Taskforce Survey answered questions about their company’s annual labour 

turnover rate (the Taskforce survey is included in Appendix VI): 

• In 2007, the rate ranged between 0 and 40 per cent, with most companies reporting 

rates between 5 and 20 per cent. 


rates between 20 and 30 per cent. 


rates between 5 and 20 per cent. Compared to 2007 and 2008, more companies 

reported rates of 40 per cent or higher—five companies experienced turnover rates of 

between 40 per cent and 90 per cent. 

Industry turnover rates vary substantially, including across types of workers. For example, a 

large resources company advised the Taskforce that turnover for its FIFO workers (up to 30 per 

cent per year) is double that of other employees. 

Potential job vacancies 

The concept of Gross Replacement is a measure of the amount of recruitment needed to 

effectively replace people leaving an occupation. A potential job vacancy can be created in 

three ways: 

• by a person leaving the job to work in another job in the same occupation 

(‘occupational churn’, which makes no net change to occupational employment 

numbers) 

• by a person leaving both the job and the occupation to work in another occupation, 

become unemployed or exit the labour force (e.g. caring duties, retirement, death, 

emigration etc.) 

• by the employer seeking to fill a new position. 


The number of people who leave jobs in a particular occupation over the course of a year, 

excluding the occupational churn component, is called the Gross Outflow from the occupation. 

This data is available on an occupation basis as shown in Table 6, not an industry basis. 

However, analysis of trends for major occupations in the resources sector suggests an average 

gross replacement rate of around 10 per cent per annum, with lower rates for the professions. 

Table 6: 

Estimates of gross replacement rates for major resources sector occupations 

Ocupation % 

Professions 

Trades 

Plant and machinery 

operators 

Chemical and materials engineers 5.3 

Civil engineering professionals 5.3 

Electrical engineers 5.3 

Electronics engineers 5.3 

Industrial, mechanical and production engineers 5.3 

Mining engineers 5.3 

Other engineering professionals 5.3 

Environmental scientists 9.7 

Geologists and geophysicists 9.7 

Automotive electricians 9.6 

Motor mechanics 9.6 

Metal casting, forging and finishing trades 9.7 

Sheetmetal tradespeople 9.7 

Structural steel and welding tradespeople 9.7 

Aircraft maintenance engineers 10.8 

Metal fitters and machinists 10.8 

Precision metal tradespeople 10.8 

Toolmakers and engineering patternmakers 10.8 

Electricians 7.6 

Air conditioning and refrigeration mechanics 10.1 

Electrical distribution tradespeople 10.1 

Electronics tradespeople 10.1 

Other machine operators 14.3 

Crane, hoist and lift operators 12.7 

Drillers, miners and shot firers 12.7 

Engineering production systems workers 12.7 

Earthmoving plant operators 14.5 

Truck drivers 12.0 

Concreters 17.4 

Structural steel construction workers 17.4 

Other construction and mining labourers 17.4 

Source: Taskforce analysis of ABS 2008a 


Retirements 

At the industry level, concerns have been expressed that the resources sector workforce is 

relatively old, leading to likely strong demand to replace retirees. Figure 8 examines the age 

profile of the mining and construction sectors compared to all industries as at February 2010. 

The data indicate the age profile of the sectors is similar to all industries. However the mining 

sector employs less people under 25 as a proportion, with 10 per cent of people employed in 

mining aged under 25, compared to 16 per cent in construction and all industries. The age 

profile for the mining sector for age 55 and beyond is lower than for all industries, which 

supports anecdotal evidence that people typically leave construction and mining before 

age 60. 

Figure 8: Age profile of the mining (includes oil and gas extraction) and construction 

industries, February 2010 

30 

Share of employment (per cent) 

25 

20 

15 

10 

5 

0 

15 - 19 20 - 24 25 - 34 35 - 44 45 - 54 55 - 59 60 - 64 65+ 

Age groups 

Mining Construction All Australian Industries 

Source: ABS 2010a 

DEEWR estimates of retirement from the mining and oil and gas industries, where people 

leave the workforce entirely, suggest 7 per cent of the current workforce will retire over 

the next five years, and 16 per cent over the next 10 years. The modelling appears broadly 

consistent with advice from the resources sector about potential retirement. The joint 

submission from the Minerals Council of Australia, the Chamber of Minerals and Energy 

Western Australia and Queensland Resources Council indicates the majority of employees 

within the minerals industry have a median age of 40, compared with a median age for all 

industries of 37. Information contained in the submission from APPEA shows, as of June 2008, 

11.3 per cent of the oil and gas workforce were aged over 55, well below the national average 

of 15.5 per cent for the same period. 

Within the occupational groups across the mining sector, Taskforce analysis suggests a high 

proportion of managers (19 per cent) and machinery operators and drivers (16 per cent) are 

likely to retire in the next 10 years. This is significantly higher than other occupations, such as 

technicians and trade workers (11 per cent) and labourers (14 per cent). 


In its recent report prepared for Skills Australia titled Economic modelling of skills demand 

(Access Economics 2009), Access Economics noted there is no single definition of replacement 

demand that is ‘correct’. Access Economics noted much labour market movement relates to 

turnover or replacement of existing workers, but this movement may or may not generate a 

training demand. Reasons include: 

• retirement (where the replacement worker would need training) 

• movement to another role with a different skill set (requiring training) 

• moving to another occupation but using the same skills set (not requiring training) 

• time out of the workforce (which may or may not require retraining or refresher 

training on return). 

Access Economics modelled retirement by broad occupation group and concluded that 

considered together, employment growth and retirements represent the number of job 

openings relevant to future qualification demand. The Taskforce has adopted a similar 

approach to determine likely demand for professionals. 

Table 7 estimates losses to retirement of mining employees by occupation over the five years 

from 2010 to 2015 following the Access Economics approach. The estimates assume overall 

losses by occupation for mining follow the pattern for overall national employment by 

occupation. The data suggest losses of professionals in mining to retirement will be around 

2,700 in the five years from 2010 to 2015. 

Table 7: Projected losses from mining sector employment to retirement, 2010 to 2015, 

by occupation 

Occupation Mining 5-year loss (no.) 

Managers 15,166 -1,940 

Professionals 26,460 -2,664 

Technicians and tradespeople 43,696 -3,794 

Community and personal service workers 327 -30 

Clerical and administrative workers 14,307 -1,375 

Sales workers 477 -35 

Machinery operators and drivers 53,899 -5,427 

Labourers 9,030 -868 

Total 163,362 -16,133 

Source: Taskforce analysis of Access Economics 2009 

Summary 

In conclusion if replacement demand is 10 per cent, it appears around 16,000 job opportunities 

are likely to arise each year in mining (including around 3,000 retirements) and 2,000 in oil 

and gas (around 500 retirements) as workers leave the industry each year for other industries 

or to retire. 


4. Supply of labour and skills 

This chapter analyses the expected supply of skilled labour from domestic sources and from 

migration. 

Supplies of skills for the resources sector can come from: 

• the existing stock of skills in the national labour market—including the unemployed 

and the employed 

• new supplies of skills, including from: 

• vocational education and training 

• higher education 

• temporary and permanent migration. 

The Taskforce has used data from ABS, the Department of Immigration and Citizenship (DIAC), 

the NCVER and the DEEWR higher education statistics collection. The Taskforce also engaged 

the NCVER to model skills supply for technicians and tradespeople. 

Supply depends significantly on decisions by individuals. Are employers willing to take on 

apprentices? Are individuals interested in undertaking the relevant apprenticeships or higher 

education courses? Ultimately, are individuals interested in working in the sector, with the 

wages and working conditions on offer in the relevant locations? Changing circumstances 

can affect decisions. For example, the four Australian universities that offer mining 

engineering courses as part of the Minerals Tertiary Education Council (MTEC) all reported 

a decline in first-year enrolments in 2010, which they attributed to the global recession and 

downturn in the mining sector in 2009. On the other hand, enrolments could increase as the 

sector rebounds. 

A summary of supply, including information from modelling, suggests: 

• Over 600,000 people are currently unemployed, including around 48,000 professionals 

and 60,000 tradespeople across all states and territories. 

• The trades workforce will increase from 1,593,000 to 1,697,371 or 6.6 per cent 

nationally to 2015 according to NCVER’s average case scenario. There will be strong 

growth in the supply of electricians (up 22,056 or 16.7 per cent), bricklayers, carpenters 

and joiners (up 22,671 or 16 per cent) and fabrication engineering tradespeople (up 

5,870 or 7.1 per cent). 

• The number of tradespeople employed in mining and oil and gas operations and 

related construction is currently 90,000 people or 5.6 per cent of the total number of 

tradespeople in Australia. If the sector gains 5.6 per cent of the expected trade growth 

over the next five years this will provide only 1,213 additional electricians and 499 more 

fabrication engineering tradespeople (includes welders/boilermakers),which are highest 

in demand. 

• The resources sector does not train its ‘fair share’ of apprentices (data compared to 

other sectors). 

• The number of completions from university engineering courses is projected to grow by 

11.2 per cent from 6,312 in 2008 to 7,020 in 2014, with a significant increase in mining, 

chemical and civil engineering. However, the number of geoscience graduates is likely 

to fall over the same period. 


• After taking likely retirement into account, supply of mining, chemical, civil and other 

engineers will increase at a faster rate of growth than in previous years but is still 

unlikely to meet demand. 

• Migration will remain an important source of supply—despite the global recession, in 

the 12 months to 30 June 2009, resources and construction companies sponsored 9,840 

people into Australia on temporary 457 visas. 

4.1 Australia’s existing stock of skills 

The domestic supply of skills to the resources sector can come from: 

• people who are appropriately skilled for the work but are unemployed or using their 

skills in other sectors 

• people who are unskilled for the sector, whether employed or unemployed, but could 

undertake training to become suitably skilled for the jobs available 

• people not currently in the labour force — skilled or unskilled. 

Table 8 examines Australia’s stock of skills in selected professional and technician and trade 

occupations in early 2010, including people employed in a particular occupation and those 

who are now unemployed but recently worked in that occupation. While the unemployment 

rate for professionals, technicians and tradespeople is generally well below that for less 

skilled workers, the data indicate in early 2010, Australia had around 48,000 unemployed 

professionals as well as over 60,000 unemployed technicians and tradespeople. To some extent, 

the number of unemployed professionals and tradespeople may reflect the after-effects of the 

global recession as well as people moving jobs. 

Table 8: Number employed and unemployed for selected occupations, February 2010 

Occupation Employed* Unemployed** 

All professional occupations 2,300,704 48,172 

Engineering professionals 119,645 3,794 

Natural and physical science professionals 90,544 2,233 

All technicians and tradespeople occupations 1,583,681 60,857 

Automotive electricians and mechanics 94,203 2,425 

Building and engineering technicians 115,725 4,189 

Electricians 126,972 3,270 

Electronics and telecommunications tradespeople 90,616 3,875 

Fabrication engineering tradespeople 81,933 3,533 

Mechanical engineering tradespeople 135,105 4,366 

Miscellaneous technicians and tradespeople 61,375 1,684 

Plumbers 72,274 2,427 

Sources: ABS 2010a; ABS 2010c 

* Employed by occupation **Unemployed by last occupationRefer to Appendix III for a list of all professional, 

technician and tradespeople occupations 


Clearly, there are unemployed professionals and tradespeople in all states and territories who 

could play a critical role in alleviating resources sector skills concerns. For example, the data 

suggest Australia has: 

• around 4,000 unemployed engineering professionals 

• over 3,000 unemployed electricians 

• over 3,500 unemployed fabrication engineering tradespeople, including welders. 

Information provided by Australian Manufacturing Workers Union (AMWU) and advice from 

the Construction Forestry Mining and Energy Union (CFMEU), both members of the Industry 

Reference Group, support the view that there are considerable numbers of unemployed 

tradespeople across Australia who are available for employment in the resources sector. 

4.2 Unemployment by occupation and by state and territory 

Table 9 provides a breakdown by state and territory of unemployed people who were 

previously employed in selected professional, technical and trades occupations in the last two 

years. These data are derived from the ABS Labour Force Survey, which is based on a sample 

of approximately 29,000 private dwellings and covers about 0.33 per cent of the Australian 

civilian population aged 15 years or over. 

Table 9: Unemployment by selected previous occupation, by state and territory 2010 

Professionals 

Unemployed 

NSW VIC QLD SA WA TAS NT ACT AUS 

All professional 

occupations 18,465 12,200 8,167 2,793 4,424 869 206 1,048 48,172 

Engineering professionals 1,091 1,085 511 585 490 0 0 32 3,794 

Natural and physical 

science professionals 663 179 676 141 417 45 0 112 2,232 

All technicians and 

tradespeople occupations 17,652 14,220 14,975 3,786 8,060 1,205 481 478 60,857 

Automotive electricians 

and mechanics 674 584 654 121 154 204 0 34 2,425 

Building and engineering 

technicians 1,576 777 595 316 812 32 48 32 4,189 

Electricians 1,139 651 691 150 504 66 68 0 3,270 

Electronics and 

telecommunications 

tradespeople 1,302 958 1,047 172 298 34 18 46 3,873 

Fabrication engineering 

tradespeople 812 964 530 54 1,000 172 0 0 3,533 

Mechanical engineering 

tradespeople 1,031 554 895 474 1,283 54 75 0 4,366 

Miscellaneous technicians 

and tradespeople 632 201 383 89 379 0 0 0 1,686 

Plumbers 1,115 230 759 122 177 24 0 0 2,427 



Available data suggest while unemployment remains low in towns located close to existing 

mining sites or major projects, many regions and cities continue to experience significant levels 

of unemployment. For example, DEEWR unemployment data in Table 10, shows at March 2010 

unemployment was relatively high in Cairns and in the Bundaberg–Hervey Bay region in 

Queensland. Unemployed people in these areas may provide an additional source for the 

resources sector to draw on to meet its skills needs. 

Table 10: Unemployment in selected areas, March quarter 2010 

Area 

Number of 

unemployed people Unemployment rate % 

New South Wales 213,900 5.9 

Hunter* 14,883 5.2 

Queensland 133,500 5.6 

Cairns 12,877 11.7 

Townsville—Thuringowa 2,020 5.7 

Mackay—Rockhampton—Gladstone 8,288 6.3 

Bundaberg—Hervey Bay 6,224 7.7 

Brisbane 55,800 5.1 

Western Australia 63,300 5.1 

Geraldton—Port Hedland—Karratha 2,003 5.6 

Perth 47,200 5.1 

South Australia 44,800 5.3 

Port Augusta—Whyalla—Port Pirie 1,406 5.6 

Adelaide 35,000 5.6 

Australia 641,000 5.6 

Source: DEEWR 2010c 

* For illustrative purposes, includes Cessnock, Lake Macquarie, Maitland, Muswellbrook, Newcastle, Port Stephens 

and Singleton. 

4.3 New supplies of skills 

4.3.1 Vocational education and training 

Recent trends in skills formation 

Since the resources boom of the previous decade, Western Australia and Queensland have 

moved to increase their output of apprentices and trainees to meet the increased demand for 

skills. Thesse two states experienced the highest levels of growth (4,100 or 43.2 per cent and 

8,000 or 30.2 per cent respectively) of all states and territories between 2005 and 2009. 


Figure 9: Number and percentage change in apprentice and trainee completions by 

state and territory, 2005 to 2009 

NSW 

9 400 (24.8%) 

Vic 

-3 300 (-7.4%) 


Qld 

SA 

WA 

Tas 

200 (3.7%) 

2 100 (22.8%) 

4 100 (43.2%) 

8 000 (30.2%) 

NT 

0 (0%) 

ACT 

100 (4.0%) 

-7 000 -5 000 -3 000 -1 000 1 000 3 000 5 000 7 000 9 000 11 000 

Source: NCVER 2010 

Number of completions 

Projections of skills formation 

The Taskforce engaged the NCVER to develop projections of the future supply of tradespeople 

for 2010–2020 with three possible scenarios: best case, average and worst case. The estimates 

for supply of tradespeople reflect supply to the overall national labour market and the 

resources sector will need to compete with other industries to engage them. 

NCVER’s analysis examines trends in commencements, completions and attrition, by trade, to 

derive a net supply figure over the projection period: 

• In the best case scenario, the highest contract commencement rate and the lowest 

contract cancellation/withdrawal and attrition rates are used. 

• In the average case scenario, average rates are used. 

• In the worst case scenario, the lowest commencement rate and the highest 

cancellation/withdrawal and attrition rates are used. 

Resources sector trades expected to experience the highest rates of growth—short of the worst 

case scenario occurring—include electricians, bricklayers, carpenters and joiners, fabrication 

engineering tradespeople, and mechanical engineering tradespeople, with building and 

engineering technicians, and electronics and telecommunications tradespeople faring less well. 


Table 11 provides estimates of the total number of tradespeople by occupational group in 

2010 and in 2015 and includes information about the increase or decrease. For example the 

number of electricians is expected to increase by around 22,000 (17 per cent) by 2015 under 

the average case scenario. 

Table 11: Projected growth in skills supply for selected technicians and tradespeople, 

2010 to 2015, best, average and worst case scenarios 

2015 

2015 

2015 

Building and engineering 

technicians 

Fabrication engineering 

tradespeople 

Mechanical engineering 

tradespeople 

Bricklayers, and carpenters 

and joiners 

2010 

Best case 

scenario 

122,100 +122,978 

+878 

+1 % 

82,400 104,283 

+21 883 

+27 % 

141,400 167,428 

+26 028 

+18 % 

141,400 190,811 

+49,411 

+35 % 


+52 146 

+39 % 

Electronics and telecommunications 

tradespeople 

101,400 114,518 

+13,118 

+13 % 

Average case 

scenario 

110,622 

-11,478 

-9 % 

88,270 

+5,870 

+7 % 

149,534 

+8,134 

+6 % 

164,071 

+22,671 

+16 % 

154,256 

+22,056 

+17 % 

97,261 

-4,139 

-4 % 

Worst case 

scenario 

98,156 

-23,944 

-20 % 

75,372 

-7,028 

-9% 

132,057 

-9,343 

-7% 

141,871 

+471 

0 % 

129,788 

-2 412 

-2 % 

81,704 

-19 696 

-19 % 

Total Trades 1,593,000 1,975,502 1,697,371 1,412,668 

Source: Karmel and Mlotkowski, 2010 

Table 12 uses the NCVER’s average case scenario to provide information on projected supply 

growth in the skilled trades during the critical period of 2010 to 2015, when many major 

projects are scheduled. The data suggest nationally there will be significant numbers of 

new tradespeople in several key trades relevant to the resources sector. However, while this 

‘apparent supply’ is significant, it will be accessed by all industries, not just the resources sector, 

and skill formation trends will vary from state to state. 


Table 12: Projected new skill formation in the skilled trades, Australia, 2010 to 2015 

Trade 2010 2015 variation 

Agricultural, medical and science technicians 49,700 64,460 14,760 

Building and engineering technicians 122,100 110,622 -11,478 

Automotive electricians and mechanics 98,300 107,909 9,609 

Fabrication engineering tradespeople 82,400 88,270 5,870 

Mechanical engineering tradespeople 141,400 149,534 8,134 

Bricklayers, and carpenters and joiners 141,400 164,071 22,671 

Floor finishers and painting tradespeople 60,400 55,815 -4,585 

Glaziers, plasterers and tilers 67,000 71,866 4,866 

Plumbers 73,400 82,508 9,108 

Electricians 132,200 154,256 22,056 

Electronics and telecommunications tradespeople 101,400 97,261 -4,139 

Wood tradespeople 32,100 33,335 1,235 

Miscellaneous technicians and tradespeople 51,700 45,670 -6,030 

Total Trades 1,153,500 1,225,577 72,077 


Skill formation by state and territory 

Figure 10, Figure 11 and Table 14 provide information by state under the average case 

scenario. The total number of tradespeople is expected to increase by: 

• 35,319 in New South Wales 

• 27,580 in Queensland 

• 15,249 in Victoria 

• 11,480 in Western Australia. 

Figure 10: Projected growth in the supply of tradespeople, 2010 to 2015, by state and 

territory, average case scenario 

NT 

1 324 

ACT 

1 917 


TAS 

SA 

WA 

VIC 

QLD 

3 575 

7 928 

11 480 

15 249 

27 580 

NSW 

35 319 

AUS 

10 4371 

0 20 000 40 000 60 000 80 000 100 000 120 000 


Number of tradespeople 


Table 13 and Figure 11 show that under the average case scenario, the supply of technicians 

and tradespeople in Western Australia will grow by 5 per cent to 2015. This is unlikely to be 

sufficient to meet demand. 

Table 13: Projected supply of technicians and tradespeople, by state and territory, 

2010 to 2015, by scenario 

2010 

2015 

Best case scenario 

New South Wales 464,900 584,119 

+119,219 

+26% 

Victoria 386,200 468,605 

+82,405 

+21% 

Queensland 337,400 424,625 

+87,225 

+26% 

South Australia 115,700 144,485 

+28,785 

+25% 

Western Australia 213,300 257,151 

+43,851 

+21% 

Tasmania 32,800 42,826 

+10,026 

+31% 

Northern Territory 22,000 26,976 

+4,976 

+23% 

Australian Capital 

Territory 

20,700 26,715 

+6,015 

+29% 

2015 

Average case 

scenario 

500,219 

+35,319 

+8% 

401,449 

+15,249 

+4% 

364,980 

+27,580 

+8% 

123,628 

+7,928 

+7% 

224,780 

+11,480 

+5% 

36,375 

+3,575 

+11% 

23,324 

+1,324 

+6% 

22,617 

+1,917 

+9% 

2015 

Worst case 

scenario 

331,585 

-54,615 

-14% 

304,420 

-32,980 

-10% 

102,600 

-13,100 

-11% 

190,953 

-22,347 

-10% 

30,080 

-2,720 

-8% 

19,487 

-2,513 

-11% 

18,393 

-2,307 

-11% 

Australia 1,593,000 1,975,502 1,697,372 1,412,668 

Source: Karmel and Mlotkowski 2010 


Figure 11: Projected growth in the supply of tradespeople, 2010 to 2015, 

by state and territory, percentage change, average case scenario 

Vic 

3.9% 

WA 

5.4% 


NT 

Aus 

SA 

NSW 

Qld 

6.0% 

6.6% 

6.9% 

7.6% 

8.2% 

ACT 

9.3% 

Tas 

10.9% 

0 2 4 6 8 10 12 


per cent 

It is concerning that Western Australia’s supply is not expected to increase as rapidly as most 

other states given its resources sector’s needs and the reluctance of people to move from the 

east coast to Western Australia. 

State skill formation by occupation 

It is also concerning that in Western Australia, growth in the net supply in the key electrical 

trade is low by comparison with other states, particularly as it has been identified as an 

occupation likely to be in shortage from 2012 (see Figure 12). 


Figure 12: Projected growth in supply of selected tradespeople, 2010 to 2015, 

by state and territory, percentage change, average case scenario 

NSW 

10.9% 

18.3% 

Vic 

6.4% 

12.4% 


Qld 

SA 

WA 

Tas 

NT 

7.2% 

3.0% 

4.4% 

5.6% 

7.4% 

7.7% 

14.3% 

16.4% 

25.4% 

36.5% 

ACT 

15.7% 

81.0% 

Aus 

7.1% 

16.7% 

0 10 20 30 40 50 60 70 80 90 

per cent 

Fabrication engineering trades workers 

Electricians 


The NCVER examined the resources sector’s expected share of trade and apprentice 

employment, which in February 2010 was 5.6 per cent, or 90,000 people. The majority were 

concentrated in other construction services (29,700), metal ore mining (15,700), heavy and civil 

engineering construction (12,500) and coal mining (11,500). 

Those trades in which the resources sector’s share was higher than its overall share of trade 

employment included horticultural trades which have a significant role in site rehabilitation 

(26.9 per cent), mechanical engineering trades (15.3 per cent), building and engineering 

technicians (12.8 per cent) and fabrication engineering trades (8.5 per cent). Electricians came 

in slightly below at 5.5 per cent. 

The resources sector’s overall share of trade apprentices is lower than its share of trade 

employment. In December 2009, the sector employed 6,776 (3.6 per cent) trade apprentices. 

The majority were concentrated in other construction services (3,497), heavy and civil 

engineering construction (1,129), other mining support services (793) and metal ore 

mining (638). 

Projections on the future supply of trade skills to the resources sector 

NCVER analysis (average case scenario) suggests if the resources sector maintains its share of 

tradespeople, it will employ approximately 95,000 in 2015. 


The resources sector’s role in trade skills formation 

NCVER assessed the relative contribution of the resources sector to skills formation to meet its 

own needs and concluded that: 

A related issue is the extent to which the industry contributes to the supply itself. The 

issue is whether the resources sector trains its fair share of apprentices. We address this 

issue by comparing the share of apprentices with the share of tradespeople. We find 

that the sector employs considerably fewer apprentices than would be expected from 

its share of trade employment. In fact, the sector would have to double its number of 

apprentices to be on par with other industries. It is interesting to note that the two 

occupations in which the sector pulls above its weight—building and engineering 

technicians and horticulturalists—are the two occupations for which the resources 

sector is a major employer. 

Karmel and Mlotkowski 2010 

Table 14: Relative share of apprentices employed by the resources sector, by selected 

occupations (fair share=100) 

Relative share of apprentices employed by selected occupations 

Technicians and tradespeople 63 

Building and engineering technicians 160 

Fabrication engineering tradespeople 45 

Mechanical engineering tradespeople 39 

Electricians 27 

Electronics and telecommunications tradespeople 24 

Horticultural tradespeople 113 

Miscellaneous technicians and tradespeople 30 


Note: the occupations are those for which the resources sector employs 4 per cent or more of the employment in 

that occupation. 

As part of its analysis, the NCVER examined the contribution made by the resources sector to 

the employment of trade apprentices. This was done on the basis of the sector’s share of trade 

apprentices relative to its trade employment share, with a value of 100 or higher indicating 

the sector employs its share, or more, of trade apprentices. 


Overall, the resources sector’s share of apprentices is 64, suggesting it does not employ its fair 

share of trade apprentices. Oil and gas extraction, coal mining and metal ore mining employ 

well below their ‘fair share’. 

Table 15: Relative share of apprentices employed by the resources sector, by industry (fair 

share=100) 

Relative share of apprentices employed by industry 

Coal mining 17 

Oil and gas extraction 10 

Metal ore mining 34 

Exploration 40 

Other mining support services 137 

Heavy and civil engineering construction 77 

Land development and site preparation services 29 

Other construction services 100 

Total resource industries 64 

Total other industries 102 

Total 100 

Source: Karmel and Mlotkowski 2010 

4.3.2 Higher education 

Higher education supply 

The higher education system supplies skills for many of the occupations in the resources sector, 

for example, accountants, planners and auditors. Crucial to the core business and technical 

operations of the resources sector are the specialised fields of engineering (e.g. mining, 

petroleum, chemical and civil engineering) and geoscience (e.g. geology, geophysics and 

geochemistry). In recent years concerns have been raised that the number of graduates from 

these areas need to increase. 

Commencements in engineering 

The latest higher education data is for 2008. Over the period 2002–2008, the number of 

students commencing in engineering courses was at its lowest point in 2005 but since then 

numbers have been increasing. Between 2005 and 2008, the number of domestic students 

commencing in undergraduate engineering courses increased by 16 per cent, from 10,619 to 

12,321. In 2008, just over one in four students commencing in undergraduate engineering 

courses were overseas students and just over one in two students commencing postgraduate 

courses were overseas students. 


Table 16: Student commencements in engineering* higher education courses, by citizenship 

and course level, 2002 to 2008 

2002 2003 2004 2005 2006 2007 2008 

Postgraduate commencements 

Domestic 2,985 3,050 3,015 2,810 2,725 2,737 2,893 

Overseas 2,368 3,413 3,416 3,323 3,156 3,458 3,616 

Total 5,353 6,463 6,431 6,133 5,881 6,195 6,509 

Undergraduate commencements 

Domestic 11,114 10,898 10,655 10,619 11,046 12,084 12,321 

Overseas 3,946 4,370 4,020 3,967 4,085 4,935 4,974 

Total 15,060 15,268 14,675 14,586 15,131 17,019 17,295 

Total commencements 

Domestic 14,171 14,033 13,742 13,579 13,931 15,000 15,440 

Overseas 6,314 7,783 7,436 7,301 7,247 8,393 8,590 

Total 20,485 21,816 21,178 20,880 21,178 23,393 24,030 

Source: Taskforce analysis of Higher Education Student Data DEEWR 2010 

*Engineering includes Australian Standard Classification of Education (ASCED) codes: 030000 –039999. 

Commencements in geoscience 

Over the period 2002–2008, the number of students commencing in geoscience courses was 

at its lowest point in 2005 and has since increased, but commencement numbers in 2008 

were well below those seen between 2002 and 2004. Between 2005 and 2008, the number 

of domestic students commencing in undergraduate geoscience (or earth science) courses 

increased by 34 per cent, from 171 to 229. In 2008, just over one in five students commencing 

undergraduate geoscience courses were overseas students and just over one in three 

commencing postgraduate geoscience courses were overseas students. 

Table 17: Student commencements in geoscience* higher education courses, by citizenship 

and course level, 2002 to 2008 

2002 2003 2004 2005 2006 2007 2008 

Postgraduate commencements 

Domestic 209 185 183 178 212 239 210 

Overseas 52 44 58 49 68 75 106 

Total 261 229 241 227 280 314 316 

Undergraduate commencements 

Domestic 266 253 337 171 197 215 229 

Overseas 8 7 10 2 31 70 59 

Total 274 260 347 173 228 285 288 

Total commencements 

Domestic 475 438 520 349 409 454 439 

Overseas 60 51 68 51 99 145 165 

Total 535 489 588 400 508 599 604 

Source: Taskforce analysis of Higher Education Student Data DEEWR 2010 

*Geoscience includes Australian Standard Classification of Education (ASCED) codes for earth sciences: 

010700 –010799. 


4.3.3 Projected trends in higher education domestic undergraduate 

completions, 2009 to 2014 

Using recent commencements and completions data, the Taskforce has estimated future 

numbers of graduates (see Appendix IV). These estimates are based on 2008 data for domestic 

undergraduate students (the latest data available). Completion numbers have been projected 

for the years 2009 to 2014, as it is expected a student will be ready to enter the workforce the 

year after they complete their course ie from 2010 to 2015. 

Engineering 

Across all engineering fields, the number of completions for domestic students from 

undergraduate courses is projected to grow by 11.2 per cent from 6,312 in 2008 to 7,020 in 

2014. Tables 18 and 19 provide expected completions across courses relevant to the resources 

sectors and Appendix IV provides estimates for each year. 


undergraduate courses for engineering fields of education, 2008 and 2014 

2008 2014 

Growth 

% 

Mining engineering 139 253 82 

Chemical engineering 347 443 28 

Civil engineering 935 1 107 18 

Maritime engineering and technology 76 104 37 

Source: Taskforce analysis of Higher Education Student data, DEEWR, 2010 

The largest increases in growth in completions of engineering courses are projected to occur in 

Western Australia and Queensland between 2008 and 2014. 


undergraduate courses for engineering 1 , by state and territory, 2008 and 2014 

2008 2014 

Growth 

% 

Western Australia 715 1,017 42 

Queensland 1,142 1,598 40 

New South Wales 1,676 1,993 19 

South Australia 427 467 9 

Tasmania 134 178 32 

Northern Territory 11 15 37 

Victoria 2,106 1,692 -20 

Australian Capital Territory 2 101 58 -42 

Source: Taskforce analysis of Higher Education Student Data, DEEWR, 2010 

Notes: 

1 Engineering includes Australian Standard Classification of Education (ASCED) codes: 030000 –039999 

2 From 2005 completions from the Australian Defence Force Academy are included with NSW—prior to 2005 

they are included with the Australian Capital Territory 


Geoscience 

Domestic undergraduate completions in geoscience are expected to increase from 2009 to 

2011 and then decrease between 2011 and 2014. Between 2009 and 2014 completions are 

expected to fall by 19 per cent. For more detailed analysis of completions see Appendix IV. 

4.3.4 Employment destinations for higher education graduates 

Graduate Careers Australia found that 90.6 per cent of the mining engineering graduates who 

completed their qualifications at the end of 2008 were working in a mining-related occupation 

four months later. For geology graduates, 81.4 per cent were working in occupations directly 

related to their degrees. 

Table 20 provides data on graduates working in a field related to their training. 

Table 20: Proportion of graduates working in areas related to training, by field of study, 2008 

Broad field of education 

Proportion of bachelor degree graduates 

working in areas related to training (%) 

Chemical engineering 90.6 

Civil engineering 85.7 

Electrical engineering 85.2 

Electronic/computer engineering 80.6 

Mechanical engineering 84.9 

Mining engineering 90.6 

Other engineering 81.8 

Geology 81.4 

Chemistry 83.9 

Physics 66.1 

Source: Graduate Careers Australia 2009 

However, the Taskforce’s analysis of census data indicates many mining professionals are 

employed in other industries, which suggests many do not remain in mining. In 2006, only 

55 per cent of those qualified as mining engineers were working in mining, while 8 per 

cent were working in professional, scientific and technical services in areas, such as scientific 

research and engineering. Only around 30 per cent of geologists and geophysicists were 

working in mining. Around 21 per cent of geologists and 27 per cent of geophysicists were 

working in professional, scientific and technical services. See Table 21. 


Table 21: Number and percentage of those with mining engineering and geoscience 

qualifications working in mining, 2006 

Field of Education 

Total employed 

Number 

employed in mining 

(ANZSIC* 2006) 

Proportion 

working in mining 

% 

Mining engineering 7,429 4,068 55 

Geology 9,247 3,146 34 

Geophysics 1,034 305 29 

Geochemistry 139 14 10 

Source: Taskforce analysis of ABS 2007 

* Australian and New Zealand Standard Industrial Classification 

4.3.5 Immigration 

Temporary and permanent skilled migration has made a significant contribution to the supply 

of skills to the labour market in recent years. The importance of migration to the resources 

sector as a means of meeting its skill needs and in contributing to continued productivity and 

expansion has been confirmed in consultations and submissions to the Taskforce. 

This contribution has been made directly, for example through employer-sponsored programs 

such as the Employer Nomination Scheme and Regional Sponsored Migration Scheme, as well 

as through the General Skill Stream of the permanent Migration Program, which has created 

an onshore pool of skills from which the resources sector can draw. 

These have been supplemented by temporary programs such as the Subclass 457 visa and 

labour agreements with the Australian Government, the latter including a number of 

agreements negotiated with labour hire companies supplying skilled workers to the resources 

sector. 


Table 22 shows the numbers of primary visa applications for both the Migration Program 

and the Subclass 457 visa by selected occupations, not all of which are in the resources and 

construction sectors. Around 19 per cent of those granted, Subclass 457 visas (9,840) were for 

work in the resources and construction sectors. 

Table 22: Primary visa applications granted by selected occupations, 2008–09 

Occupation 

Migration Program 

(permanent) 

Subclass 457 visa* 

(temporary) 

Engineering, distribution and process managers 551 1,053 


Building and engineering professionals 5,633 4,321 

Building and engineering associate professionals 541 2,397 


Fabrication engineering tradespeople 966 1,659 

Electrical and electronics tradespeople 2,012 713 

Structural construction tradespeople 874 640 

Mobile plant operators 9 106 

Intermediate stationary plant operators 6 30 

Intermediate mining and construction workers 19 216 

Subtotal—selected occupations related to the resources sector 13,789 14,318 

Total—all occupations 50,652 50,661 

Source: Department of Immigration and Citizenship (DIAC) unpublished data 2010 

* Includes visas granted under labour agreements. 

In 2008–09, employers in the mining sector were granted 4,300 Subclass 457 visas (8.5 per cent 

of all granted), a decline of 11.9 per cent from the previous financial year. Employers in the 

construction sector were granted 5,540 visa applications (a 10.9 per cent share and a decrease 

of 2.6 per cent from the previous year) (DIAC 2010). 

Recent trends indicate Subclass 457 visa applications are increasing. For example, the number 

of primary visa applications lodged in March 2010 was the highest in 12 months, and the 

application rate was 19 per cent higher than the previous month (DIAC 2010). 

Despite this, in March 2010, the application rate was still 3 per cent lower than in March 2009, 

and remains well below the rates seen during 2007–08. For their part, trade occupations 

accounted for only 9 per cent of total applications during the March quarter 2010, a decrease 

from 16 per cent for the same quarter last year (DIAC 2010). 


5. Where are the skills gaps? 

This chapter examines recent labour market trends, competition for skills sought by the 

construction and resources sector, existing skill shortages across the economy and resources 

companies’ current and anticipated recruitment difficulties. 

The Australian economy continues to strengthen following the global recession, although 

recovery is geographically patchy. Some communities have higher rates of unemployment 

than others. For example, in Mackay, near the mining centre of the Bowen Basin, the 

unemployment rate is 6.3 per cent, while in Cairns it is 11.7 per cent (see Table 11). 

Economic growth is expected to strengthen over the next two to three years. Employment 

has risen for eight consecutive months to April 2010 and seems likely to continue to rise (ABS 

2010c). Job vacancies, both broadly and for skilled labour, are also increasing with strong 

growth in vacancies for engineering professionals and in key trades for the resources sector in 

the past year. However earnings growth is relatively subdued, including in the mining industry. 

This suggests skill shortages have yet to add significantly to wage pressures in the resources 

sector. 

The resources and construction sectors report recruiting difficulties for some professional 

occupations—particularly for senior and specialist positions—and a tightening of the labour 

market in some trades, but there is currently no shortage of applicants for entry-level 

positions: 

It is not uncommon for Newcrest to receive 100s if not 1000+ applications for entry‐level, 

unskilled operator roles, when advertised, especially in a residential location such as 

Orange. 

Newcrest submission 

There is significant potential for skills gaps and skills shortages to emerge over the period 

2011–2013 as the construction of new resources projects ramps up and resources companies 

seek additional workers to support expansion and to replace workers who leave. 

Construction of major infrastructure projects is likely to peak in 2012–13 coinciding with the 

expected peak in construction of resources projects. 

In most occupations and locations, the picture is one of gathering demand and potential skill 

shortages rather than significant existing skill shortages. However, trends vary from state 

to state and the resources sector, in seeking to recruit for jobs in remote locations, will face 

competition from employers in metropolitan areas. 

Current skills shortages at the national level include civil, electrical, mechanical, mining and 

petroleum engineers, geologists, carpenters, plumbers and the automotive trades. Although 

DEEWR analysis has not identified shortages of welders at the national level, shortages are 

apparent in South Australia, Western Australia and the Northern Territory. For Western 

Australia, there are also shortages of earthmoving plant operators, motor mechanics, 

carpenters and joiners and concreters (see Appendix V). 


Looking ahead, Western Australia is likely to face significant shortages by late 2012 for 

structural steel and welding tradespeople, fitters, electricians, earthmoving plant operators, 

structural steel concrete workers, motor mechanics, crane lift and hoist operators, carpenters 

and joiners, concreters and other construction and mining operators. 

In Queensland, shortages will depend on the progress of coal seam gas (CSG) projects but 

are likely to include mining production managers, civil, electrical, mechanical and petroleum 

engineers as well as fitters, electricians, electrical instrumentation, drillers and plant and 

machinery operators. Skill shortages are likely to be more significant in regions where 

resources projects are concentrated. 

5.1 Strong economic growth is likely to increase the 

competition for skills and labour from other industries 

As discussed earlier, both Treasury and the RBA expect economic growth will strengthen 

for the next two to three years. Stronger economic growth is likely to result in reductions 

in unemployment. In its 2010–11 Budget papers, Treasury forecast the unemployment rate 

will continue to fall, reaching 5 per cent by the end of 2010–11 and 4.75 per cent by the end 

of 2011–12, ‘around its full employment rate’ (Australian Treasury 2010b). This will lead to 

greater competition for scarce skills between employers, which may lead to skill shortages in 

some occupations (RBA 2010). 

Employment rose in April for the eighth consecutive month and the unemployment rate 

remained steady at 5.4 per cent. The DEEWR Skilled Vacancy Index (SVI) (trend) increased by 

1.3 per cent in April 2010. In annual terms, the SVI was 18.6 per cent higher than in April 2009. 

Over the year to April 2010, increases in skilled vacancies were recorded for all but one of 

the states and territories. Skilled vacancies are well below 2008 levels but have recovered 

in the past year. The largest increases were recorded for Western Australia (up by 73.9 per 

cent), the Northern Territory (up by 26.9 per cent) and New South Wales (up by 17.1 per cent). 

Queensland recorded the only fall (down by 40.3 per cent). 

Considered by occupation, there were strong increases in vacancies for building and 

engineering professionals (up 47.0 per cent), in the metal trades (up 118.1 per cent) 

construction and wood trades (up 83.7 and 74.0 per cent respectively) and electrical and 

electronic trades (up by 42.9 per cent) (DEEWR 2010a). 

5.2 Trends in earnings 

Recent ABS Labour Price Index survey data suggest earnings growth in mining is increasing 

somewhat, but at similar levels to several other industries covered in the survey. In the four 

quarters to March 2010 the Labour Price Index survey indicates mining earnings rose by 3.4 per 

cent over this period while for all industries, wages rose by 2.6 per cent. Construction wages 

also rose by 2.9 per cent over this period (ABS 2010d). 


5.3 The potential for skills gaps 

The Taskforce has modelled potential skills demand against potential supply from the 

vocational education and training sector, higher education and the unemployed. From this 

modelling it has attempted to estimate skills gaps—that is, where demand for skills exceeds 

skills supply. 

5.4 Skills demand 

In Chapter 3, the Taskforce identified three key outcomes: 

• the creation of up to 45,000 non-ongoing jobs in each of 2012 and 2013 in project 

construction (medium-growth scenario) 

• the creation of up to 61,500 new jobs in mining operations by 2015 and up to 16,000 

further jobs annually as a result of people leaving the industry 

• The number of new jobs in gas operations will be between 1,800 and 3,200. 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 

people per annum, including approximately 500 retirements. 

Around half these jobs will be in professions and trades, and half in less skilled 

occupations, including significant jobs growth for plant and machinery operators and drillers 

in Queensland. 

5.5 Supply of skills 

5.5.1 Trades 

A summary of supply including information from modelling suggests: 

• Australia has 60,000 unemployed tradespeople across all states and territories 

• trades completions are projected to be around 179,800 Australia wide between 

2010 and 2015 

• the resources sector (mining and gas) does not train its fair share of apprentices. 

5.5.2 Professions 

The Taskforce’s analysis suggests the number of completions from university engineering 

courses is projected to grow by 11.2 per cent from 6,312 in 2008 to 7,020 in 2014, with a 

significant increase in mining, chemical and civil engineering. The number of completions 

in geoscience is projected to increase from 2009 to 2011 and then decrease by 18.8 per cent 

(see Appendix IV). 

5.5.3 Other 

While the resources sector attracts labour from other industries, there is also a significant 

supply of labour available to meet its needs for less skilled positions from the unemployed 

(with support and training), those not currently in the labour force and new entrants over 

the next five years. 


5.6 Supply gaps 

5.6.1 Trades 

The Taskforce estimates the number of new trade positions required as a result of expansion in 

the mining and gas sectors will be around 16,000 and replacement demand will be about 4,400 

per annum, that is, 22,000 over 2010–2015. 

As construction project jobs are short term the Taskforce has assumed the 39,000 short-term 

trades jobs required during construction over 2010–2015 (under the medium case scenario) will 

each last on average for a 12-month period—ie 7,800 trades required at any point in time (but 

in reality there will be peak periods of trades employment). 

NCVER projections suggest there will be around 179,800 trade completions over the five 

year period 2010–2015 (see NCVER report, Appendix Table A2 at www.deewr.gov.au/nrset). 

Historically the resources sector has employed 5.6 per cent of all tradespeople. If the resources 

sector recruits 5.6 per cent of anticipated completions to 2015, then the implied supply of 

around 10,000 tradespeople to the resources sector between 2010 and 2015 would be well 

below projected new jobs in the period ahead, suggesting a supply imbalance of around 

35,800. Outcomes are shown in Table 23. 

Table 23: Projected supply of trades versus projected new and replacement jobs 

Number of 

new jobs for 

tradespeople 

2010 to 2015 

Construction 7,800 

Mining 

15,000 

operations 

Gas operations 1,000 

Total new 

jobs for 

tradespeople 

(construction, 

mining and gas 

operations) 

Jobs as a result 

of attrition 

(mining and 

gas) 

Supply of 

tradespeople 


mining and gas 

operations) 

Projected 

shortfall of 

tradespeople 

23,800 22,000 10,000 35,800 

Source: Taskforce estimates based on ABS 2008b, Karmel and Mlotkowski, 2010 

Note: Estimates include construction, mining and gas operations except in the column estimating ‘jobs as a result of 

attrition’—here construction has been excluded because it is difficult to estimate the attrition rate for construction 

jobs in the resources sector and the jobs are short-term project positions. 


The Taskforce notes the potential for creation of around 16,800 short-term professional 

jobs in construction, around 9,600 professional jobs in mining and possibly a further 1,000 

professional jobs in gas operations over the period to 2015. 

The Taskforce has modelled skills demand and supply balances for the key resources sector 

professions, such as engineering. The same approach is followed in modelling supply/demand 

imbalances for the professions as is used for modelling trades jobs. The Taskforce has assumed 

the estimated professional jobs created during construction last an average of one year. 


5.6.3 Engineers 

Engineers Australia (EA) has expressed concern about the supply of engineers. In its 

submission to the Taskforce, EA noted recent increases in higher education completions for 

undergraduate domestic engineering students, but commented that recent increases only 

reverse the falling trend since 2001 and before. EA contended to meet demand, engineering 

graduations need to increase substantially. EA also suggested more migrant engineers need to 

be attracted to Australia, especially into the construction and scientific and technical services 

industries. In particular, EA stressed that more engineers at the Level 3 and Level 4 (15 to 20 

years of experience) were required through the migration program. 

Table 24 provides projections of supply to the resources sector, compared with projected new 

jobs for engineers and losses to attrition over the period to 2015. 

The estimates suggest the resources sector will not face an absolute shortfall of engineers, 

given the national supply is projected to significantly exceed demand for engineers in the 

resources sector. However, the resources sector will need to recruit heavily to meet its needs 

(10 per cent of all engineering graduates). The sector has historically employed around 

4 per cent of graduates so it will need to more than double its recruitment of graduates 

and if successful may cause skills supply issues for other industries. 

Table 24: Projected supply of engineers versus projected new and replacement jobs, 

2010 to 2015 

Number of 

new jobs for 

engineers 

2010 to 2015 

Construction 780 

Mining 

3,205 

operations 

Gas operations 400 

Total new jobs 

for engineers 


mining 

and gas) 

Jobs as a 

result of 

attrition 

(mining 

and gas) 

Supply of 

engineers 

(new 

graduates) 

Projected 

shortfall of 

engineers 

4,385 2,100 40,000 NO SHORTFALL 

Source: Taskforce estimates based on ABS 2008b and Karmel and Mlotkowski, 2010 

Notes: Assumes employment share for engineers in resources remains constant over projection period 

compared to base period. 

Estimates include construction, mining and gas operations except in the column estimating ‘jobs as a result of 

attrition’—here construction has been excluded because it is difficult to estimate the attrition rate for construction 

jobs in the resources sector and the jobs are short-term project positions. 


5.6.4 Mining engineers (includes petroleum engineers) 

Mining engineers account for around 40 per cent of all engineers in the resources sector 

(ie around 4,900). For the period 2010–2015, Taskforce modelling suggests there will be 1,600 

new jobs for engineers and 1,300 due to replacement demand (estimated at 260 per annum— 

around 5.3 per cent). The sector could therefore be looking to recruit 2,900 mining engineers. 

The supply from new graduates should be around 1,200 so unless the sector can reduce 

attrition and attract engineers working in other industries, there could be a shortfall of 1,700 

over the next five years. 

5.6.5 Geoscientists 

Around 3,400 people are employed as geoscientists in the resources sector. For the period 

2010–2015, Taskforce modelling suggests there will be 2,200 new jobs for geoscientists and 

1,650 due to replacement demand (estimated at 330 per annum—around 9.7 per cent). The 

sector could therefore be looking to recruit around 3,800 geoscientists. The supply from new 

graduates should be around 800 leaving a potential short fall of around 3,000. However, as 

approximately 70 per cent of people with geoscience qualifications work outside the 

resources sector, there may be scope for companies to recruit these people. 

5.6.6 Other 

Modelling presented earlier in this report suggested the expansion of mining operations could 

lead to the creation of 21,400 positions for machinery operators and drivers. In construction, 

a further 36,200 short-term project positions could be created for machinery operators and 

drivers, together with 35,500 short-term positions for labourers. This skill need could be 

addressed by recruiting from the unemployed including those who have lost jobs through the 

global recession, those not in the labour force and new entrants to the labour market over the 

next five years. 

5.7 Competing demands for construction skills sought by the 

resources sector 

As the economy strengthens there will be competing demands for skills from other industries 

with competition from infrastructure projects particularly relevant given the skills required. 

While Treasury anticipates strong growth in business investment in 2010–11 and that dwelling 

investment will rise, it suggests that: ‘Investment in new non-residential building, by contrast, 

is expected to remain subdued. Outside of stimulus-related activity, there is a limited pipeline 

of work in the building sector, reflecting credit constraints, high vacancy rates and soft 

property prices. Despite support from the Government’s Building the Education Revolution 

program, investment in this sector has fallen sharply over the past year. This weakness is 

expected to continue into 2010–11 with investment forecast to fall by a further 6.5 per cent’ 

(Australian Treasury 2010a). 


Treasury noted that as commercial property vacancy rates stabilise and previously built floor 

space is absorbed through the broader economic recovery, building approvals are expected 

to recover during 2011, leading to renewed activity in the sector. This is expected to lead to a 

modest recovery in investment in 2011–12, with growth of 4 per cent. 

This suggests limited competing demand for construction skills for the next 12–18 months. 

Over $70 billion worth of major non-resources infrastructure projects ($100 million+) have 

been identified across Australia that are due to start construction in the next two years or 

are already underway. The listing at Figure 13 is not comprehensive as there are additional 

projects where a final decision to proceed has yet to be made. Where the dates of projects 

were not stated by sources, construction periods have not been included. Information on 

all major infrastructure projects expected to be undertaken in the next five years is not 

available. For example, the next five-year Nation Building—Economic Stimulus Plan program 

(2014–2019) is not due to be announced until 2012–13. This will include major Australian 

Government‐funded infrastructure projects around Australia. 

New South Wales has the highest total dollar value of known major infrastructure projects 

of $19.6 billion, Victoria $17.3 billion, Queensland $11.9 billion, and Western Australia $9.9 

billion. This includes Building the Education Revolution (BER) projects but excludes the 

federally funded Australian Rail Track Corporation—Economic Stimulus Package Projects 

($1.188 billion), as the funding is allocated to the Corporation and the state-by-state breakup 

is not available (Figure 13). 

Across Australia, the types of construction projects include rail, road, port, hospitals and 

sporting complexes. It appears that construction activity will be strongest in 2012–2013 when 

construction in the resources sector is also expected to peak (average growth scenario). 


Figure 13: Other major infrastructure projects 

Source: Taskforce analysis 


5.8 Skills shortages are limited to date but will increase 

The labour market is tightening with some professions experiencing shortages, such as 

mining engineers, mining production managers, geologists in some locations, geophysicists 

and automotive trades. 

Table 25 details the consolidated views of stakeholders about current and emerging skills 

shortages, by occupation. It also includes views provided to the Taskforce through submissions, 

surveys and consultations. Pit Crew (Table 26) has suggested Western Australia is currently 

only facing shortages for electricians, and construction and mining labourers, but that by 

early 2012, will be facing shortages in most of the key trades in the construction and resources 

sectors, such as electricians, structural steel tradespeople, fitters, earthmoving contractors, 

structural steel construction workers and motor mechanics. In Queensland, skill shortages 

are expected for civil, electrical and mechanical engineers and mechanical engineering 

tradespeople and electricians. 


Table 25: Current and emerging skills shortages, 2010 onwards 

Resource occupations* DEEWR Taskforce CPSISC 

Skills 

DMC 

Pit 

Crew 

WA 

Energy 

Skills 

QLD RESA MISC 

Managers P P P P 

Construction managers P P P 

Production manager (mining) P P P P 

Professions 

Civil engineer P P P P 

Electrical engineer P P P P 

Mechanical engineer P P P P 

Mining engineer P P P P 

Petroleum engineer P P P 

Geoscience P P P P P P 

Surveyor P P P P 

Trades 

Metal fabricator P P P 

Welder P P 

Fitter (general) P P P 

Metal machinist P P P 

Carpenter P P P 

Plumber (general) P P 

Electrician P P P P P 

Motor mechanic (includes diesel P P P P P 

mechanic) 

Automotive electrician P P 


P P P P 

tradespeople 

Other 

Driller 

P 

Chemical, gas, petroleum and power 

P P P P 

plant operator 

Building and engineering technician P P P P 

Construction and mining labourer P P 

Crane, lift and hoist operators P P 

Source: Taskforce analysis 2010; Taskforce submissions, surveys and consultations 2010; CPSISC 2010; Skills DMC 

2010; The Pit Crew Report WA 2009 in WA Department of Training and Workforce Development 2010; Energy Skills 

Queensland (ESQ), 2009; Resources and Engineering Skills Alliance (RESA) 2009; Industry consultations; MISC 2009 

Notes: * The table uses occupations listed in the skill shortages in resources occupations table in Appendix V, 

DEEWR unpublished data 2010, with the following additions: manager, construction manager, geoscience 

(includes geologists and geophysicists), surveyor, electronics and telecommunications trades workers, 

building and engineering technician, construction and mining labourer, and crane, lift and hoist operator. 


Table 26: Pit Crew Management Consulting Services Pty Ltd, workforce analysis by ANZCO category, November 2009–November 2013 

ANZSCO 

category 

November 

quarter 

2009 

February 

quarter 

2010 

May 

quarter 

2010 

August 

quarter 

2010 

November 

quarter 

2010 

February 

quarter 

2011 

May 

quarter 

2011 

August 

quarter 

2011 

November 

quarter 

2011 

February 

quarter 

2012 

May 

quarter 

2012 

August 

quarter 

2012 

November 

quarter 

2012 

February 

quarter 

2013 

May 

quarter 

2013 

3223 

Structural 

steel and 

welding 

Tradespeople 

About level 

About 

level 

About 

level 

Some 

availability 

Some 

availability 

Some 

availability 

About 

level 

About 

level 

About level 

Moderate 

shortage 

Moderate 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

3232 Fitters About level 

About 

level 

About 

level 

Some 

availability 

Some 

availability 

Some 

availability 

Some 

availability 

Some 

availability 

About level 

Moderate 

shortage 

Moderate 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

3411 

Electricians 

Moderate 

shortage 

High 

shortage 

High 

shortage 

Moderate 

shortage 

Moderate 

shortage 

About 

level 

About 

level 

About 

level 

About level 

About 

level 

About 

level 

High 

shortage 

High 

shortage 

Acute 

shortage 

Acute 

shortage 

7212 

Earthmoving 

plant 

operators 

About level 

Some 

availability 

Some 

availability 

Some 

availability 

About level 

Moderate 

shortage 

Moderate 

shortage 

High 

shortage 

Acute 

shortage 

Acute 

shortage 

High 

shortage 

High 

shortage 

Moderate 

shortage 

About 

level 

Some 

availability 

8217 

Structural 

steel 

construction 

workers 

About level 

About 

level 

About 

level 

Some 

availability 

Some 

availability 

About 

level 

About 

level 

About 

level 

Moderate 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

3212 Motor 

mechanics 

About level 

About 

level 

Some 

availability 

Some 

availability 

About level 

About 

level 

Moderate 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

Moderate 

shortage 

7121 Crane, 

lift & hoist 

operators 

About level 

About 

level 

Some 

availability 

Some 

availability 

About level 

About 

level 

Moderate 

shortage 

Moderate 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

High 

shortage 

Moderate 

shortage 

3312 

Carpenters & 

joiners 

Some 

availability 

Some 

availability 

Some 

availability 

Some 

availability 

Some 

availability 

Moderate 

shortage 

Moderate 

shortage 

High 

shortage 

Acute 

shortage 

Acute 

shortage 

Acute 

shortage 

High 

shortage 

About level 

Some 

availability 

Some 

availability 

8212 

Concreters 

Some 

availability 

Some 

availability 

Some 

availability 

Some 

availability 

Some 

availability 

Moderate 

shortage 

Moderate 

shortage 

High 

shortage 

Acute 

shortage 

Acute 

shortage 

Acute 

shortage 

High 

shortage 

About level 

Some 

availability 

Some 

availability 

8219 Other 

construction 

& mining 

labourers 

Moderate 

shortage 

Moderate 

shortage 

Moderate 

shortage 

About 

level 

Some 

availability 

Some 

availability 

Some 

availability 

Some 

availability 

Some 

availability 

About 

level 

Moderate 

shortage 

High 

shortage 

Acute 

shortage 

Acute 

shortage 

Acute 

shortage 

Source: The Pit Crew Report WA 2009 in WA Department of Training and Workforce Development 2010. 

Note:This table provides a one-page summary showing the anticipated relative difficulty in the resourcing of projects over the next 2–3 years, 

which ranges from acute shortage to good availability with respect to the ability to recruit specific skills originating from Western Australia. 

August 

quarter 

2013 

High 

shortage 

High 

shortage 

Acute 

shortage 

Some 

availability 

Moderate 

shortage 

About 

level 

About 

level 

Some 

availability 

Some 

availability 

High 

shortage 

November 

quarter 

2013 

Moderate 

shortage 

Moderate 

shortage 

Acute 

shortage 

Some 

availability 

About level 

Some 

availability 

Some 

availability 

Some 

availability 

Some 

availability 

High 

shortage 


5.9 Summary 

The Taskforce’s analysis indicates skills shortages will occur in a number of professional, 

technician and trades, and plant and machinery occupations important to the resources sector, 

with the likelihood these shortages will intensify around 2011–2012. 

The potential skill shortages include: 

• engineering professionals in a number of disciplines, including mining engineering, civil 

and mechanical engineering and geoscientists, including geologists and geophysicists. 

Geoscientists could be in severe shortage 

• trades, including fabrication (particularly welders), electricians, mechanics (including 

diesel mechanics) 

• machinery and plant operators, including machinery operators and drivers, stationary 

plant operators and truck drivers. 

As the economy strengthens, there will be competing demand for skills from other industries. 

Employers will need to have strategies to attract and retain labour. While higher wages have 

attracted many to the sector, it is clear many employees are interested in other conditions as 

well, including access to training, career progression and a family-friendly work environment. 

Increasing competition for graduates and skilled workers highlights the importance of 

attraction and retention strategies. Shah and Burke’s analysis (Shah and Burke 2004), while 

dated, suggested the ‘probability of job separation’ from the mining sector is relatively high, 

compared to other industries. This suggests employers need to be as innovative as possible in 

sourcing local labour where available (anecdotal advice to the Taskforce suggests turnover is 

higher for FIFO workers) as well as finding ways to reduce skills attrition. 

Skills shortages are likely to appear first in Western Australia and in regional Queensland 

(Bowen Basin initially and later the Surat Basin and around Gladstone). The construction sector 

has used a FIFO/DIDO workforce skills solution for many years. Further growth in FIFO/DIDO 

numbers seems likely in the period ahead where project work has a limited life. This expansion 

of FIFO has been facilitated by increases in flights from other centres, including from Brisbane, 

Melbourne and Sydney to Karratha. For communities, such as Cairns, with above average 

unemployment rates, FIFO jobs can present important employment opportunities in both 

construction and operations of resources projects. 

5.9.1 Trades 

Other than attracting tradespeople from other industries, the main short-term options to 

increase the supply of skills to the resources sector include recruiting from the unemployed 

and through temporary or permanent migration. Australia has 60,000 unemployed 

tradespeople across all states and territories, including a pool of fabrication tradespeople 

(including welders) and electricians, which are key trades for the sector (see Appendix III). 

In the longer term, the resources sector should consider increasing its training activities in 

regard to the trades, noting the NCVER’s conclusion that it does not undertake its ‘fair share’ 

of training—adult apprenticeships are an option given the sector’s reluctance to employ 

young people and a number of companies already use this strategy. 



In the short term, besides attracting professionals from other industries, the main options 

appear to be: 

• recruit from the unemployed (Australia has 48,000 unemployed professionals) 

(see Appendix III) 

• increase the number of students completing relevant degrees at university 

• increase the sector’s recruitment of graduates 

• utilise temporary or permanent migration. 

In the longer term, promoting career paths in the resources sector to prospective students, and 

working with universities to ensure increased demand for places can be met, may add to the 

supply of skills in key professions relevant to the industry. Again FIFO/DIDO can play a role in 

meeting skills needs, particularly through recruitment from areas with high unemployment. 

5.9.3 Less skilled occupations 

Demand for labour in some of the less-skilled occupations can be addressed by recruiting 

workers from other industries and accessing the unemployed with appropriate skills training. 


Appendix I—Taskforce modelling outcomes 

Construction 

Table 27: Heavy and civil engineering construction projection for technicians and trades 

workers and machinery operators and drivers (short-term jobs), 2009 to 2016 

Occupation 

Low 

Growth 

Scenario 

Medium 

Growth 

Scenario 

High 

Growth 

Scenario 

Managers 10,485 17,329 25,994 


Professionals, not further defined 52 85 128 

Arts and Media Professionals, not further defined 0 0 0 

Arts Professionals 0 0 0 

Media Professionals 22 37 55 

Business, Human Resource and Marketing Professionals, 

0 0 0 

not further defined 

Accountants, Auditors and Company Secretaries 529 874 1,311 

Financial Brokers and Dealers, and Investment Advisers 23 39 58 

Human Resource and Training Professionals 912 1,508 2,262 

Information and Organisation Professionals 371 614 921 

Sales, Marketing and Public Relations Professionals 130 215 323 

Design, Engineering, Science and Transport Professionals, 

15 24 37 


Air and Marine Transport Professionals 180 297 445 

Architects, Designers, Planners and Surveyors 682 1128 1692 

Engineering Professionals 3,385 5,595 8,393 

Natural and Physical Science Professionals 2,730 4,512 6,768 

Education Professionals, not further defined 18 30 46 

School Teachers 4 6 9 

Tertiary Education Teachers 172 285 427 

Miscellaneous Education Professionals 9 14 21 

Health Professionals, not further defined 5 8 12 

Health Diagnostic and Promotion Professionals 445 736 1,104 

Health Therapy Professionals 10 16 24 

Medical Practitioners 11 18 27 

Midwifery and Nursing Professionals 60 100 149 

ICT Professionals, not further defined 57 93 140 

Business and Systems Analysts, and Programmers 69 114 171 

Database and Systems Administrators, and ICT Security 

117 193 290 

Specialists 

ICT Network and Support Professionals 49 81 122 

Legal, Social and Welfare Professionals, not further defined 0 0 0 

Legal Professionals 11 18 27 

Social and Welfare Professionals 69 114 171 

Technicians and Trades Workers 23,664 39,112 58,668 

Technicians and Trades Workers, not further defined 498 823 1,235 

Engineering, ICT and Science Technicians, not further defined 71 118 177 


Agricultural, Medical and Science Technicians 89 147 220 

Building and Engineering Technicians 5,008 8,278 12,417 

ICT and Telecommunications Technicians 363 600 900 

Automotive and Engineering Trades Workers, not further 

31 51 77 

defined 

Automotive Electricians and Mechanics 897 1,483 2,225 

Fabrication Engineering Trades Workers 3,159 5,222 7,833 

Mechanical Engineering Trades Workers 3,710 6,131 9,197 

Panelbeaters, and Vehicle Body Builders, Trimmers and 

112 185 278 

Painters 

Construction Trades Workers, not further defined 69 115 172 

Bricklayers, and Carpenters and Joiners 1,432 2,367 3,550 

Floor Finishers and Painting Trades Workers 97 159 239 

Glaziers, Plasterers and Tilers 118 195 292 

Plumbers 2,387 3,946 5,919 

Electrotechnology and Telecommunications Trades Workers, 85 140 211 


Electricians 2,094 3,461 5,192 

Electronics and Telecommunications Trades Workers 2,480 4,099 6,149 

Food Trades Workers 56 93 139 

Skilled Animal and Horticultural Workers, not further defined 0 0 0 

Animal Attendants and Trainers, and Shearers 8 13 19 

Horticultural Trades Workers 473 782 1,172 

Other Technicians and Trades Workers, not further defined 0 0 0 

Hairdressers 6 10 14 

Printing Trades Workers 6 10 14 

Textile, Clothing and Footwear Trades Workers 6 10 14 

Wood Trades Workers 21 35 53 

Miscellaneous Technicians and Trades Workers 388 641 962 

Community and Personal Service Workers 234 386 579 

Clerical and Administrative Workers 12,596 20,819 31,229 

Sales Workers 842 1,391 2,086 

Machinery Operators And Drivers 21,892 36,184 54,275 

Machinery Operators and Drivers, not further defined 494 816 1225 

Machine and Stationary Plant Operators, not further defined 69 115 172 

Machine Operators 1,239 2,047 3,071 

Stationary Plant Operators 2,296 3,795 5,692 

Mobile Plant Operators 11,981 19,803 29,704 

Road and Rail Drivers, not further defined 268 443 665 

Automobile, Bus and Rail Drivers 233 386 579 

Delivery Drivers 60 99 148 

Truck Drivers 4,762 7,870 11,805 

Storepersons 490 810 1,215 

Labourers 21,452 35,456 53,184 

Other 1,679 2,776 4,163 

TOTAL 102,981 170,209 255,313 

Sources: Taskforce estimates based on ABS 2010a; ABS 2010b 


Mining 

Table 28: Projections of growth in mining employment (less oil and gas) 2008 to 2015, 

by occupation 

Occupation 

Base 


(2008) 


Growth 

Projected 


(2015) 

Managers 13,977 5,571 19,548 


Professionals, not further defined 123 49 172 

Arts and media professionals, 

not further defined 0 0 0 

Arts professionals 0 0 0 

Media professionals 53 21 74 

Business, human resource and marketing 

professionals, not further defined 0 0 0 

Accountants, auditors and company 

secretaries 1,256 501 1,757 

Financial brokers and dealers, 

and investment advisers 55 22 78 

Human resource and training professionals 2,167 864 3,031 

Information and organisation professionals 882 352 1,234 

Sales, marketing and public relations 

professionals 310 123 433 

Design, engineering, science and transport 

professionals, not further defined 35 14 49 

Air and marine transport professionals 426 170 596 

Architects, designers, planners and surveyors 1,621 646 2,267 

Engineering professionals 8,041 3,205 11,247 

Natural and physical science professionals 6,485 2,585 9,069 

Education professionals, not further defined 44 17 61 

School teachers 9 3 12 

Tertiary education teachers 409 163 572 

Miscellaneous education professionals 20 8 29 

Health professionals, not further defined 12 5 16 

Health diagnostic and promotion 

professionals 1,057 421 1,479 

Health therapy professionals 23 9 33 

Medical practitioners 26 10 37 

Midwifery and nursing professionals 143 57 200 

ICT professionals, not further defined 134 54 188 

Business and systems analysts and 

programmers 164 65 229 

Database and systems administrators, and 

ICT security specialists 277 111 388 

ICT network and support professionals 117 47 163 

Legal, social and welfare professionals, not 

further defined 0 0 0 

Legal professionals 26 10 37 

Social and welfare professionals 164 65 229 



Technicians and tradespeople, not further 

defined 671 267 938 

Engineering, ICT and science technicians, 


Agricultural, medical and science technicians 1,035 413 1,448 

Building and engineering technicians 8,649 3,447 12,097 

ICT and telecommunications technicians 151 60 211 

Automotive and engineering tradespeople, 


Automotive electricians and mechanics 1,542 615 2,157 

Fabrication engineering tradespeople 2,870 1,144 4,014 

Mechanical engineering tradespeople 13,741 5,477 19,218 

Panelbeaters, and vehicle body builders, 

trimmers and painters 28 11 40 

Construction tradespeople, not further 

defined 12 5 16 

Bricklayers, and carpenters and joiners 268 107 374 

Floor finishers and painting tradespeople 59 23 82 

Glaziers, plasterers and tilers 20 8 28 

Plumbers 191 76 267 

Electrotechnology and telecommunications 

tradespeople, not further defined 94 37 131 

Electricians 5,751 2,292 8,043 


tradespeople 468 187 655 

Food tradespeople 361 144 505 

Skilled animal and horticultural workers, not 


Animal attendants and trainers, and shearers 0 0 0 

Horticultural tradespeople 95 38 133 

Other technicians and tradespeople, not 


Hairdressers 0 0 0 

Printing tradespeople 8 3 12 

Textile, clothing and footwear tradespeople 20 8 28 

Wood tradespeople 0 0 0 

Miscellaneous technicians and tradespeople 1,666 664 2,330 

Community and personal service workers 733 292 1,024 


Sales workers 597 238 835 



Machinery operators and drivers, 

not further defined 1,328 529 1,858 

Machine and stationary plant operators, 


Machine operators 1,068 426 1,493 

Stationary Plant operators 40,334 16,076 56,411 

Mobile Plant operators 3,470 1,383 4,853 

Road and rail drivers, not further defined 162 65 227 

Automobile, bus and rail drivers 542 216 758 

Delivery drivers 22 9 31 

Truck drivers 5,639 2,248 7,887 

Storepeople 991 395 1,387 

Labourers 8,140 3,244 11,384 

Other 1,675 667 2,342 

TOTAL 154,446 61,559 216,005 

Source: Taskforce estimates based on ABS 2007, ABS 2008b, ABARE, Access Economics, BIS Shrapnel projections. 

Table 29: Projected employment growth for mining operations (excludes oil and gas), 

by state and territory, 2008 to 2015 

State/territory 

Base employment 

(2008) Employment growth 

Projected employment 

(2015) 

New South Wales 28,088 11,195 39,283 

Victoria 8,900 3,547 12,447 

Queensland 38,186 15,220 53,407 

South Australia 9,078 3,618 12,696 

Western Australia 64,008 25,512 89,521 

Tasmania 2,062 822 2,884 

Northern Territory 4,071 1,623 5,693 

TOTAL 154,393 61,537 215,931 

Source: Taskforce estimates based on ABS 2008a 


Appendix II—Detailed ABARE projections of 

commodity production 2008–2015 

Table 30: ABARE commodity projections 2008 to 2015* 

2008 2009 2010 2011 2012 2013 2014 2015 

change 

2010- 

2015 

COAL 

Production Mt 185.9 204.5 213.0 218.0 228.0 250.0 270.0 300.0 

Annual change (No.) 18.6 8.5 5.0 10.0 22.0 20.0 30.0 87.0 

Annual growth rate (%) 10.01 4.16 2.35 4.59 9.65 8. 11.11 40.85 

URANIUM 

Production t 10,114 10,311 8,973 10,510 10,810 11,890 12,480 13,125 

Annual change (No.) 197.0 -1338.0 1537.0 300.0 1080.0 590.0 645.0 4152.0 

Annual growth rate (%) 1.95 -12.98 17.13 2.85 9.99 4.96 5.17 46.27 

IRON ORE 

Production Mt 324.7 353.0 423.9 427.8 491.0 536.3 562.5 576.9 


Annual growth rate (%) 8.72 20.08 . 92 14.77 9.23 4.89 2.56 36.09 

METALLURGICAL COAL 

Production Mt 139.4 130.6 158.3 162.1 168.8 176.3 181.6 187.1 

Annual change (No.) -8.8 27.7 3.8 6.7 7.5 5.3 5.4 28.8 

Annual growth rate (%) -6.33 21.21 2.41 4.13 4.46 3.00 3.00 18.17 

GOLD 

Production t 229.7 217.9 241.6 267.5 272.0 266.1 272.8 275.8 

Annual change (No.) -11.9 23.7 25.9 4.5 -5.9 6.6 3.0 34.2 

Annual growth rate (%) -5.16 10.87 10.73 1.68 -2.16 2.50 1.11 14.17 

PRIMARY ALUMINIUM 

Production kt 1,964.0 1,973.6 1,920.4 1,931.9 1,948.4 1,944.6 1,936.9 1,940.7 

Annual change (No.) 9.5 -53.1 11.5 16.6 -3.9 -7.7 3.8 20.3 

Annual growth rate (%) 0.49 -2.69 0.60 0.86 -0.20 -0.39 0.20 1.06 

ALUMINA 

Production kt 19,358.6 19,596.9 20,203.5 21,370.0 24,440.0 25,880.0 26,080.0 26,220.0 

Annual change (No.) 238.3 606.6 1,166.5 3,070.0 1,440.0 200.0 140.0 6,016.5 

Annual growth rate (%) 1.23 3.10 5.77 14.37 5.89 0.77 0.54 29.78 

BAUXITE 

Production Mt 63.5 64.0 66.2 67.4 75.9 80.4 84.9 91.2 



NICKEL 

Production kt 355.6 316.6 330.9 338.2 352.4 366.8 377.7 393.2 

Annual change (No.) -39.0 14.3 7.3 14.2 14.4 10.8 15.6 62.3 

Annual growth rate (%) -10.96 4.51 2.22 4.19 4.08 2.95 4.12 18.83 


COPPER 

Production kt 863.0 889.7 890.2 970.9 980.6 990.6 1000.0 1037.0 



ZINC 

Production kt 1,571.4 1,410.8 1,335.6 1,420.6 1,484.5 1,497.0 1,522.0 1,539.0 

Annual change (No.) -160.6 -75.2 85.0 63.9 12.5 25.0 17.0 203.4 

Annual growth rate (%) -10.22 -5.33 6.36 4.50 0.84 1.67 1.12 15.23 

Source: ABARE 2010 *table may not add due to rounding 

t tonne = 1000 kilograms; kt kilotonne = 1000 tonnes; Mt megatonne = 1,000,000 tonnes 


Appendix III—Employed and unemployed by 

occupation 

Table 31: Number employed and unemployed for selected professional occupations 

Professionals Employed Unemployed 

Accountants, auditors and company secretaries 181,623 5,379 

Air and marine transport professionals 22,175 198 

Architects, designers, planners and surveyors 103,735 2,830 

Business and systems analysts, and programmers 113,635 3,045 

Database and systems administrators, and ICT security specialists 32,148 1,011 


Human resource and training professionals 81,512 1,897 

ICT network and support professionals 46,332 1,194 

Information and organisation professionals 117,664 2,586 

Legal professionals 70,205 914 

Media professionals 53,497 2,288 


Sales, marketing and public relations professionals 109,318 3,543 

Tertiary education teachers 81,093 1,784 

Total Professionals 2,300,704 48,172 

Source: ABS 2010a; ABS 2010c 


Table 32: Number employed and unemployed for selected technician and tradespeople 

occupations 

Technicians and tradespeople Employed Unemployed 

Agricultural, medical and science technicians 50,591 1,157 


Bricklayers, carpenters and joiners 144,267 6,325 





Floor finishers and painting tradespeople 55,640 4,126 

Glaziers, plasterers and tilers 72,891 2,707 

Horticultural tradespeople 79,072 3,764 

ICT and telecommunications technicians 49,527 3,076 

Mechanical Engineering tradespeople 135,105 4,366 


Plumbers 72,274 2,427 

Wood tradespeople 33,186 858 

Total technicians and tradespeople 1,583,681 60,857 


Table 33: Number employed and unemployed for selected occupations 

Occupation Employed Unemployed 

All professional occupations 2,300,704 48,172 



All technicians and tradespeople occupations 1,583,681 60,857 








Plumbers 72,274 2,427 



Appendix IV—Higher education 

Linear projection model for higher education data 

Engineering and related technologies 

Commencements 

In this method a linear trend has been applied to existing commencements for 2002–2008, 

and this trend has been projected to provide commencement numbers for 2009 and 2010. 

The latest available data from the Department of Education, Employment and Workplace 

Relations (DEEWR) Higher Education Student Data Collection is for 2008. 

Completions 

Completions have been projected for the years 2009–2014, as it is expected a student will be 

ready to enter the workforce the year after they complete their course ie from 2010–2015. 

The crude completion ratio is determined by calculating the average of the completion ratios 

from 2005–2008. 

Crude 

completion 

ratio 

= 

2005 

Completions 

2001 

Commencements 

+ 

2006 

Completions 

2002 

Commencements 

+ 

2007 

Completions 

2003 

Commencements 

+ 

2008 

Completions 

2004 

Commencements 

This ratio was then applied to the commencement number five years earlier to determine 

the projected completions. For example completions for 2009 have been projected using 

commencements for 2005, allowing five years for completion of an engineering degree. While 

the model assumes a five year period for the average time taken to complete an engineering 

degree, some universities advise the average completion period is six years. 

Note: Completions for 2009-2012 have been projected using actual commencement figures; however completions 

for 2013-2014 have been determined using projected commencements. 

Earth Sciences (Geoscience) 

The approach used for projecting engineering and related technologies has also been used for 

geoscience, noting that a geoscience degree generally takes less time to complete (four years). 


Commencements 

In this method, a linear trend has been applied to existing commencements for 2002–2008, 

and this trend has been projected to provide commencement numbers for 2009–2011. 

The latest available data from the DEEWR Higher Education Student Data Collection is 

for 2008. 

Completions 

The crude completion ratio is determined by calculating the average of the completion ratios 

from 2005-2008. 

Crude 

completion 

ratio 

= 

2005 

Completions 

2002 

Commencements 

+ 

2006 

Completions 

2003 

Commencements 

+ 

2007 

Completions 

2004 

Commencements 

+ 

2008 

Completions 

2005 

Commencements 

This ratio was then applied to the commencement number four years earlier to determine 

the projected completions. For example completions for 2009 have been projected using 

commencements for 2006, allowing four years for completion of an earth sciences degree. 


Completions and projections in selected domestic engineering and geoscience undergraduate courses 

Table 34: Number of completions and projected completions in higher education undergraduate courses 

for engineering and geoscience fields of education 

2002 2003 2004 2005 2006 2007 2008 

Engineering 6,199 6,199 6,548 5,994 6,371 6,152 6,312 

Mining engineering 134 146 136 85 115 115 139 

Chemical engineering 337 261 331 233 362 334 347 

Civil engineering 825 827 753 676 676 762 935 

Maritime engineering and technology 365 245 502 249 309 238 76 

Geoscience 361 265 307 220 153 146 138 

2009 2010 2011 2012 2013 2014 

Engineering 6,018 6,260 6,848 6,982 6,891 7,020 

Mining engineering 139 182 212 196 233 253 

Chemical engineering 359 390 453 395 429 443 

Civil engineering 874 907 988 1,004 1,061 1,107 

Maritime engineering and technology 269 287 295 110 144 104 

Geoscience 132 144 153 128 120 112 

Source: Taskforce analysis of Higher Education Student Data, DEEWR, 2010 

Engineering includes Australian Standard Classification of Education codes: 030000 –039999. 

Geoscience includes Australian Standard Classification of Education codes for earth sciences: 010700 –010799 

Note: 2002 to 2008 are actual numbers and 2009 to 2014 are projections. 


People on their way into the sector 

Table 35: Bachelor degree graduates available for full-time work and in full-time study as a 

proportion of all bachelor degree graduates, and of those available for full-time 

work, the proportion of those in and seeking full-time employment, 2008 

Percentage of bachelor 

degree graduates 

Available 

for full-time 

employment 

In full-time 

study 

Of those available for 

full-time work 

In full-time 

employment 

Seeking 

full-time 

employment 

Broad field of education 

(%) 

(%) 

(%) 

(%) 

Aeronautical engineering 75.7 10.1 89.5 10.5 

Chemical engineering 83.8 9.2 90.6 9.4 

Civil engineering 89.8 3.7 97.3 2.7 

Electrical engineering 84.0 9.1 91.9 8.1 

Electronic/computer engineering 84.3 8.4 89.1 10.8 

Mechanical engineering 84.1 7.7 93.9 6.1 

Mining engineering 92.1 1.3 100.0 0.0 

Other engineering 80.9 10.5 92.4 7.6 

Geology 57.3 32.6 4.3 9.6 

Chemistry 37.7 54.9 7.5 20.4 

Physical sciences 39.4 50.0 12.4 22.9 

Total 66.2 19.6 85.2 14.8 

Source: Graduate Careers Australia 2009 


Share of employment by field of study 

Table 36: The number of people with an engineering and related technology degree or earth 

science degree by industry of employment, 2006. 

Industry 

Number employed 

by Industry 

Engineering 

and related 

technologies 

Earth 

sciences 

Proportion of employment 

by Industry 

Engineering 

and related 

technologies 

(%) 

Earth 

sciences (%) 

Agriculture, forestry and fishing 20,977 211 2 2 

Mining 37,212 3,708 4 27 

Manufacturing 240,441 614 24 4 

Electricity, gas, water and waste services 31,025 182 3 1 

Construction 121,611 260 12 2 

Wholesale trade 50,976 368 5 3 

Retail trade 59,503 648 6 5 

Accommodation and food services 16,341 156 2 1 

Transport, postal and warehousing 70,404 253 7 2 

Information media and telecommunications 23,863 150 2 1 

Financial and insurance services 10,295 350 1 3 

Rental, hiring and real estate services 11,079 86 1 1 

Professional, scientific and technical services 73,959 3,158 7 23 

Administrative and support services 20,875 196 2 1 

Public administration and safety 63,766 1,548 6 11 

Education and training 19,277 1,277 2 9 

Health care and social assistance 16,723 240 2 2 

Arts and recreation services 6,141 109 1 1 

Other services 87,742 163 9 1 

Inadequately described and not stated 24,346 240 2 2 

Total 1,006,556 13,917 100 100 

Source: ABS 2007 


Appendix V—DEEWR analysis of skill shortages 

DEEWR analysis suggests in 2009, demand for skilled labour fell significantly and skill 

shortages abated in many occupations. Reductions in the extent of skill shortages were 

notable in a number of occupations of importance to the resources and construction sectors, 

although shortages persisted in some specific occupations and in some locations. Overall, the 

number of occupations assessed by DEEWR as being in shortage between 2008 and 2009 fell 

by about 30 per cent. 

DEEWR notes that, since late 2009, the demand for skilled labour has recovered significantly 

in line with the general economic recovery. Nonetheless, skill shortages remain less prevalent 

than they were before the global recession, when shortages were apparent across most trades 

and professions. 

The DEEWR Skilled Vacancy Index (SVI) has risen by 19 per cent from its low point in June 2009. 

Despite this recovery, the level of vacancies remains historically low. 

DEEWR skill shortage research for 2010 (to date) shows the proportion of surveyed vacancies 

filled and the number of suitable applicants per vacancy have both fallen compared with the 

second half of 2009, indicating a tightening labour market. Further pressure on the supply of 

skilled labour is expected with ongoing recovery, particularly in the resource and construction 

sectors. 

Although shortages are becoming more widespread overall, increase in demand has not been 

uniform across the labour market. Shortages are particularly noticeable in the health and 

engineering professions and in construction and automotive trades. In other sectors, shortages 

remain restricted to relatively few occupations, specialisations or locations. 

The DEEWR skill shortage research program focuses on high-skill occupations, that is, those 

that generally require at least three years of post-school education and training. Many of the 

key occupations in the resources sector, such as drillers, truck drivers and plant operators, are 

low skill, but there are others that take some time to acquire, either through formal training 

or on-the-job training and experience or both. 

Managers 

The latest DEEWR research indicates there are shortages for mining production managers. 

Employers report demand for these senior roles has increased since late 2009, and that they 

have been unable to attract adequate numbers of applicants who have the required mining 

engineering and management experience. 

Engineering and science professions 

The labour market for engineering and science professionals (includes geologists and 

metallurgists) eased appreciably in early 2009 but a number of engineering occupations 

remained in shortage, including mining engineers. 


Ongoing monitoring of the labour market suggests demand began to recover from mid-to-late 

2009 and greater signs of tightening in the labour market have become evident since then. 

The increase in demand is not, however, uniform across locations or industry sectors. 

DEEWR considers shortages of engineers have returned to levels similar to those seen before 

the onset of the global recession. There was a moderate easing in the labour market in 

the first half of 2009; however, increased demand has been evident since late 2009 due, in 

particular, to heightened activity in the resources sector. Shortages were recorded for around 

80 per cent of engineering professions surveyed in January–March 2010. The vacancy fill rate 

was around 45 per cent and there were just 1.4 suitable applicants per vacancy. 

Figure 14: Number of suitable applicants per vacancy, engineers, 2007–10 

1.6 

1.4 

Number of applicants 

1.2 

1.0 

0.8 

0.6 

0.4 

0.2 

0.0 

Jan-Jun 07 

Jul-Dec 07 

Jan-Jun 08 

Jul-Dec 08 

Feb-Apr 09 

Sep-Oct 09 

Dec-09 

Jan-Mar 2010 

Year 

Source: DEEWR skill shortage research 

National shortages for geologists abated during 2009, although employers in some regions 

continued to report difficulty in recruiting. Research undertaken in 2010 shows shortages of 

geologists have re-emerged. Less than half the surveyed vacancies were filled and employers 

attracted, on average, only around one suitable applicant per vacancy. Recruitment difficulties 

varied significantly, however, according to location and industry sector. Research undertaken 

in early 2010 (based on a limited number of contacts) suggests that employers are also 

experiencing difficulty recruiting geophysicists. 

For metallurgists, the 2010 research indicates employers experienced little difficulty recruiting, 

with most vacancies attracting multiple suitable applicants. There was no evidence of 

widespread shortages of these professionals. 

Construction, metal/engineering and electrical/electronics trades 

A substantial and widespread decrease in shortages among the trades was evident in the first 

quarter of 2009. An easing labour market was especially evident for the construction and 

metal engineering trades and shortages in these trades abated. 

A pickup in demand became evident from mid-2009, but the recovery was relatively slight in 

the second half of 2009, gaining more momentum in early 2010, with shortages again being 

recorded in some trades. Nonetheless, trades employers continue to experience less difficulty 


ecruiting than they did before the global recession. The graph below shows the proportion of 

vacancies filled by key trades group from 2007–2010. 

Although vacancy fill rates are relatively low for some specific trades and shortages are 

apparent, the variation in recruitment experience across sectors and trades means the rate at 

which vacancies are filled for most trades groups remains relatively high. 

Figure 15: Vacancies filled, trades groups, 2007–10 (per cent) 

90 

80 

70 

60 

(per cent) 

50 

40 

30 

20 

10 

0 

Jan-Jun 07 

Jul-Dec 07 

Jan-Jun 08 

Aug-Dec 08 

Feb-Mar 09 

Jul-Oct 09 

Nov-09 

Feb-Mar 10 

Year 

Engineering Trades Construction Trades Electrotechnology & Telecommunication Trades 


*no data available for E&TT in November 2009 

DEEWR analysis suggests a tightening labour market has been evident for construction trades 

since late 2009. More than three quarters of vacancies surveyed in the period from July to 

September 2009 were filled and shortages were restricted to a small number of trades, the 

highest level of availability of construction tradespeople recorded in recent years. By February/ 

March 2010, however, the vacancy fill rate had fallen to around 65 per cent, there were just 

1.6 suitable applicants per vacancy, and around half the surveyed construction trades were 

assessed as being in shortage. By comparison, in early 2008 the vacancy fill rate was around 

50 per cent, there were 1.1 suitable applicants per vacancy, and almost all surveyed 

construction trades were in shortage. 


Figure 16: Number of suitable applicants per vacancy, construction trades, 2007–10 

4.5 

4.0 


3.5 

3.0 

2.5 

2.0 

1.5 

1.0 

0.5 

0.0 

Jan-Jun 07 

Jul-Dec 07 

Jan-Jun 08 

Aug-Dec 08 

Feb-Mar 09 

Jul-Oct 09 

Nov-09 

Feb-Mar 10 

Year 


In the metal/engineering trades, skill shortages remain restricted to relatively few occupations. 

In February–March 2010 three out of eight surveyed occupations were in shortage. The 

vacancy fill rate was around 70 per cent and there was an average of two suitable applicants 

per vacancy. By comparison, in late 2008 the vacancy fill rate was slightly less than 50 per cent, 

there were 0.8 suitable applicants per vacancy, and nearly 90 per cent of surveyed occupations 

were in shortage. Although the research did not identify a national shortage of welders, 

shortages were apparent in South Australia, Western Australia and the Northern Territory. 

Figure 17: Number of suitable applicants per vacancy, metal/engineering trades, 2007–10 

5.0 

4.5 

4.0 


3.5 

3.0 

2.5 

2.0 

1.5 

1.0 

0.5 

0.0 

Jan-Jun 07 

Jul-Dec 07 

Jan-Jun 08 

Aug-Dec 08 

Year 

Feb-Mar 09 

Jul-Oct 09 

Nov-09 

Feb-Mar 10 



Shortages were evident for around half of the electrical and communications trades surveyed 

in February–March 2010, but widespread shortages were not evident in the key trade of 

general electrician. The vacancy fill rate for this group was around 60 per cent and there were 

two suitable applicants per vacancy. Vacancy fill rates and numbers of suitable applicants per 

vacancy remain at higher levels than those commonly recorded before the onset of the global 

recession. For example, in late 2008 the vacancy fill rate was around 40 per cent and there was 

less than one suitable applicant per vacancy. 

Figure 18: Number of suitable applicants per vacancy, electrical and communications 

trades, 2007–10 

2.5 

2.0 


1.5 

1.0 

0.5 

0.0 

Jan-Jun 07 

Jul-Dec 07 

Jan-Jun 08 

Aug-Dec 08 

Feb-Mar 09 

Jul-Oct 09 

Feb-Mar 10 


Year 

Research undertaken in early 2010 suggests skill shortages in the automotive trades have also 

re-emerged. Twice as many of these trades, including general motor mechanic and automotive 

electrician, are now in shortage compared with August 2009. 


Table 37: Skill shortages in resources occupations, 2008 to 2010 

Managers 

2008 2009 2010 

Production manager (mining) Shortage No shortage Shortage 

Professions 

Civil engineer Shortage Shortage Shortage 

Electrical engineer Shortage Shortage Shortage 

Mechanical engineer Shortage No shortage Shortage 

Mining engineer Shortage Shortage Shortage 

Petroleum engineer n/a Shortage Shortage 

Geologist Shortage No shortage Shortage 

Trades 

Metal fabricator Shortage No shortage No shortage 

Welder Shortage No shortage No shortage 

Fitter (general) Shortage No shortage No shortage 

Metal machinist Shortage No shortage No shortage 

Carpenter Shortage No shortage Shortage 

Plumber (general) Shortage No shortage Shortage 

Electrician Shortage No shortage No shortage 

Motor mechanic (includes diesel mechanic) Shortage No shortage Shortage 

Automotive electrician Shortage Shortage Shortage 

Other 

Driller Shortage n/a n/a 

Chemical, gas, petroleum and power plant operator No shortage No shortage n/a 


Note: n/a = not assessed 


Skill shortage methodology 

Purpose 

DEEWR undertakes skill shortage research on an ongoing basis. This research also forms 

the basis of the National Skill Needs List, which is used to determine eligibility of Australian 

Apprentices and their employers for a range of incentives, and feeds into the Priority 

Occupations for the Productivity Places Program. 

The research also addresses a need for information about skill needs in each state and territory 

to underpin policy, planning and resource allocation. State and territory skill shortage lists 

incorporating the results of the research are publicly available at www.workplace.gov.au/ 

skillshortages. 

The DEEWR methodology provides indicative qualitative information on skill shortages. 

It delivers relevant useful information about employers’ experiences recruiting skilled 

workers and enables DEEWR to explore labour market issues impacting on the supply of and 

demand for particular skills through discussions with individual employers. While the DEEWR 

methodology is cost effective and targeted, it is not based on a statistically valid sample and 

does not enable the compilation of quantitative estimates. However, the Australian Bureau of 

Statistics reviewed the methodology in 2006 and found it was appropriate for its purpose. 

The DEEWR Skill Shortage research is undertaken on an occupational basis. Until the end of 

the 2007–08 program, the Australian Standard Classification of Occupations was used to define 

occupations. The skill shortage research is now undertaken on the basis of the Australian and 

New Zealand Standard Classification of Occupations (ANZSCO) in line with the introduction 

of this classification exclusively in ABS statistics from February 2008 and to better reflect the 

occupational structure of the current Australian labour market. 

1. Survey of employers who have recently advertised 

The survey of employers who have recently advertised (SERA) is a survey of employers who 

have recently advertised vacancies in selected skilled occupations. 

SERA is an important element of the research into skill shortages conducted by DEEWR 

through its state and territory Labour Economics Offices (LEOs) and National Office. The aims 

of the SERA are to: 

• better target telephone contact work by focusing on employers who have recently 

advertised and, therefore, are in a good position to comment on current recruitment 

issues for target occupations 

• provide information on employer recruitment experience 

• provide a consistent methodology for information across states and territories and 

occupations, which could be analysed over time to determine broad trends in skilled 

labour markets. 


2. Main Elements of the SERA 

DEEWR staff contact employers who have recently attempted to recruit in the occupations 

included in the skill shortage research program. To identify employers who have recruited, 

vacancy details are collected from available sources, including major metropolitan and regional 

newspapers, general employment and specialist industry and occupational internet sites, as 

well as professional associations and notices outside business premises. 

Where there are sufficient vacancy numbers, vacancies for follow-up are randomly selected. 

For some occupations, adequate numbers of vacancies are not identified. In these cases, all 

vacancies found with appropriate contact information in the survey period are followed 

up and other employers are cold canvassed to ensure assessments are based on a sufficient 

number and range of contacts. 

Contact with employers is discussion based, rather than a formatted survey, but the minimum 

information sought from employers is the number of positions available, whether vacancies 

were filled, the total number of applicants and the number of suitable applicants. However, 

supplementary information is collected where practical through the recommended questions 

and engagement with employers about labour market issues. The research aims to collect 

information about why vacancies are unfilled, as this is important for making a decision about 

the rating for each occupation. 

3. Methodology 

3.1 Sample size and selection of sample 

The number of employers contacted varies based on the number of people employed in the 

occupation and the number of vacancies advertised. In a small number of cases, the limited 

number of employers makes it impractical to contact the target number of employers who 

have recently advertised. In these cases, judgment is used regarding the number of employers 

surveyed to produce a reliable result. A minimum number of contacts is made for each 

occupation. This primarily comprises employers who have advertised vacancies over the past 

six months. However, where vacancy numbers are low and sufficient vacancies cannot be 

identified ‘cold canvassing’ of major employers and peak bodies is undertaken. 

When employers are cold canvassed, they are asked whether they have advertised vacancies 

in the target occupation in the last six months (vacancies older than six months are not 

considered as they may not be a reliable guide to current labour market conditions and they 

will reflect a previously assessed labour market). Employers are then asked whether they filled 

the vacancy and, if so, approximately how long it took them to do so. 

If cold-canvassed employers have not advertised recently, discussions focus on the employer’s 

perceptions about the labour market for the occupation and issues impacting on the labour 

market. 

Regional vacancies 

DEEWR attempts to survey an appropriate number of employers from regional areas for each 

occupation taking into account the significance of regional employment in the particular 

occupation. Regional areas are those outside the major capital cities in each state and territory. 


Smaller states and occupations 

In the smaller states particularly (South Australia, Tasmania, the Northern Territory and 

Australian Capital Territory), and for occupations that have small employer and vacancy 

numbers, the minimum number of employer contacts is not always achievable. In these 

cases, DEEWR aims to collect as many vacancies for follow-up as possible, with cold 

canvassing of employers when vacancy numbers are low. 

3.2 Collection and presentation of results 

Demand analysis 

Researchers take account of a range of data (such as that outlined below) in conjunction 

with the results of the SERA, which underpins their assessments of occupational labour 

markets. However, comment on these data sets is included in the Skill Shortage Research 

Program reports only where it presents relevant information about the labour market for that 

occupation or where it adds evidence for its rating. Comment about how changes in industry 

activity levels impact on demand for the occupation is included (for example, falling housing 

starts may impact more quickly on commencing trades such as bricklaying and demand for 

tilers and painters may hold up longer as work in progress is completed). Additionally, the 

labour market for trades with stronger demand from maintenance work, such as plumbers, 

may be less affected by a decline in housing commencements. 

Demand data could include: 

• examination of key determinants of demand (that is, the variables affecting the level of 

demand for these skills) 

• relevant industry activity statistics and projections 

• employment levels (where reliable and current) 

• vacancy levels (only where reliable data is available) 

• anecdotal information on demand from employers and industry contacts 

• a conclusion on whether demand is increasing or decreasing 

• the likely outlook for demand over the following six months. 

Supply analysis 

Analysis of supply to the occupation is important, although available data does not always 

allow a precise estimate of numbers entering an occupation. Supply trends are included in 

occupational reports with comment about anticipated changes to supply (for example the 

closure of a training course or establishment of new courses). Where there are no well-defined 

supply paths (for example, for some management and associate professional occupations) 

reports may include information about the diversity of supply sources. 

Consideration is given to the following supply issues: 

• training completions and commencements where available 

• wastage (people leaving the occupation) 

• net migration figures (if relevant and available) 

• comment on informal supply (if significant) 

• conclusion on whether overall supply to the occupation is increasing or decreasing. 


SERA results 

SERA results are not intended as a measure of the degree of shortage and are not statistically 

accurate. Reflecting this, figures are quoted in the relevant skill-shortage report in broad 

terms, but may be compared with previous results when available. The SERA is only one piece 

of evidence for the state of the labour market for a particular occupation. While it may vary 

from occupation to occupation, other relevant information (including that outlined under 

‘demand analysis’ and ‘supply analysis’) and SERA results are interpreted in light of other 

available information, such as employment growth, vacancy trends (where reliable) and 

the comments of employers, industry contacts, educational institutions and labour market 

intermediaries. 

A low vacancy fill rate may not necessarily indicate a skill shortage in the occupation. DEEWR 

examines the reasons for vacancies remaining unfilled and there are often a number of causes 

unrelated to the overall shortage. These include employers having specialist requirements, 

the position involving the operation of machinery or equipment that are not generally used 

and with which most qualified and skilled workers may not have experience, pay or conditions 

offered being below market rates, and particular working arrangements and expectations of 

employers or employees that are unrealistic. Additionally, the working arrangements sought 

by workers may not match those offered by employers, for instance workers seeking full-time 

work but employers offering part-time hours, employers seeking salary and wage employment 

but workers wanting contract work. 

3.3 Ratings 

Taking account of all available information, including the results of the SERA and the reasons 

for employers being unable to fill vacancies, researchers decide on an appropriate rating. 

Ratings are for the whole of the state or territory covered by the report (or for Australia, if it is 

a national report) unless there is a qualifier suggesting the rating varies between metropolitan 

and regional locations. Where researchers have identified differences in the labour market 

between metropolitan and regional locations this is noted in the ratings box. 

The following definitions are used: 

Shortage 

Skill shortages exist when employers are unable to fill or have considerable difficulty 

filling vacancies for an occupation, or significant specialised skill needs within that 

occupation, at current levels of remuneration and conditions of employment, and in 

reasonably accessible locations. 

Recruitment difficulty 

Recruitment difficulties occur when some employers have difficulty filling vacancies for 

an occupation. There may be an adequate supply of skilled workers, but some employers 

are unable to attract and recruit sufficient, suitable workers for reasons such as the 

specific experience or specialist skill requirements of the vacancy, differences in hours of 

work required by the employer and those sought by applicants, and particular location 

or transport issues. 

No shortage 

Research has not identified any significant difficulty filling vacancies. 


3.4 Standard employer questions 

Although the minimum information required for the SERA is whether a vacancy was filled 

within the four to six week period, other information is important in determining whether 

skills shortages exist and the reasons for these shortages. Recommended questions for 

employer contact work are provided to researchers. It must be emphasised, however, that 

researchers use their discretion regarding the questions that are appropriate in relation to the 

occupation and the attitude of the contact. 

3.5 Timing of contact work 

To reduce the influence of seasonal factors, as far as possible, DEEWR conducts SERA contact 

work for a group of occupations (for example, construction) at approximately the same time 

of the year in each state and territory. 

Identifying whether a vacancy is filled or not is measured four weeks after advertising for 

trades occupations and six weeks after advertising for professional vacancies. Therefore, 

contact with employers is generally attempted four weeks (or, in the case of professional 

vacancies, six weeks) after the surveyed advertisement appeared. However, where this is not 

possible, the questions seek information about whether the position was filled within four (or 

six) weeks. If a vacancy is filled but the employer states they had advertised for several weeks 

before the vacancy which was surveyed, the concern is whether the surveyed vacancy was filled 

within the four weeks. The focus is on the employer’s most recent recruitment experience. 

3.6 Specialisations 

To achieve a reasonable sample size the SERA is conducted on occupations at the six-digit 

ANZSCO level (although some six-digit occupations have been combined). Assessments of 

shortages in specialisations are usually based on qualitative information drawn from a smaller 

number of employer and industry contacts. 

3.7 What is a vacancy? 

The definition of a vacancy is generally as follows: ‘A vacancy is for a definite position offered 

by the direct employer for a paid employee.’ Part-time positions are surveyed if the hours of 

work are 16 or more per week and temporary/casual positions are surveyed if they are for 

three months or longer. Advertisements for self-employment or partnerships are generally 

excluded. However, in industries where there is significant subcontracting (e.g. construction) 

and the advertisement offers specific paid employment that meets the criteria, the position is 

surveyed. Vacancies advertised by recruitment agencies are included in the SERA if they are for 

an actual vacancy with a particular employer rather than a general ‘canvassing’ advertisement. 

However, recruitment agencies are often contacted for qualitative information. 

Multiple vacancies 

Employers sometimes advertise multiple vacancies without having a definite number in mind. 

In such cases, researchers attempt to seek from employers their best estimate of the number 

of vacancies involved. Employers may be asked how many people they would immediately 

employ and could afford to employ if a large number of very good candidates applied. 

3.8 When is a vacancy filled? 

A vacancy is considered to be filled if the employer recruited a suitable applicant within 

four weeks of advertising the surveyed vacancy (six weeks in the case of professions), the 

successful applicant stayed more than two weeks in the position and left voluntarily, and 

there were no performance issues. 


Incomplete recruitment exercises 

In some cases, an employer will not have completed a recruitment exercise within four to six 

weeks for administrative reasons, for example, they have not finalised formal interviews or 

have called several promising applicants for a second round of interviews. In this case, the 

researcher makes arrangements to recontact the employer when the result of the interview 

process is known. If this is not practicable, the researcher records the vacancy as filled if 

the employer is highly confident of filling the vacancy from that recruitment round. If the 

employer is unsure of the likely result, the vacancy is excluded from the SERA. 

3.9 Time period 

The period after which a vacancy is assessed (six weeks for professionals, four weeks for other 

occupations) is to some extent arbitrary, although it is reasonable to expect that employers 

would have, in most cases, completed the recruitment process in that time. Setting a defined 

time for vacancy filling gives the advantage of simple and consistent benchmark of measuring 

whether a vacancy is filled so that the SERA collection is consistent across DEEWR state offices 

and National Office, and over time. 

Advertisements often state a cut-off date for applications. In this case the vacancy is surveyed 

four to six weeks after the cut-off date if practical. 

3.10 Consultation 

Consultation with key industry, employee and professional associations is undertaken to 

confirm the findings of the research and discuss the labour market and factors impacting on 

skill needs before reports and skill shortage lists are finalised. 


Appendix VI—NRSET Industry Survey 

Background 

In order to gauge the likely labour and skill needs of major resources sector projects 3 coming 

on stream over the next five years, the National Resources Sector Employment Taskforce 

Secretariat conducted an industry survey of resource, construction and labour hire companies 

operating in the resources sector. 

The survey addressed the demand for labour and skills during the construction of major 

projects, as well as their ongoing operational needs. The survey also sought to gain a better 

understanding of employee turnover within the sector, how employers were recruiting or 

intending to recruit people with the needed skills and the extent to which employers were 

having difficulty recruiting. 

The Minerals Council of Australia, Australian Petroleum Production and Exploration 

Association, Australian Mines and Metals Association, Chamber of Minerals and Energy of 

Western Australia and the Queensland Resources Council were consulted in the preparation of 

the survey. 

Conducting the survey 

Four hundred and five companies (including 186 resources companies, 94 construction 

companies and 125 labour hire companies) were asked to participate in the survey. 

The survey was sent out by email and in hard copy on 18 March 2010, with a deadline for 

responses set for 9 April 2010. This was later extended to 30 April 2010 to accommodate 

companies having difficulties in assembling the necessary data, and the Taskforce Secretariat 

continued to receive survey responses after this date. 

Reminder emails (on 8 April 2010) and phone calls (on 12–13 April 2010) were made by the 

Taskforce to encourage survey responses. Industry associations were also urged to encourage 

their members to participate in the survey. 

Fifty-seven companies completed the survey questionnaire (37 resources companies, 

15 construction companies and 5 labour hire companies). Some companies provided the 

Taskforce with information through their submissions. 

_____________________________________________________ 

3 

Valued at over $40 million in capital expenditure (420 million for gold mining projects) 


National Resources Sector Employment Taskforce 

Survey of Resources Sector Demand for Labour and Skills 

Introduction 

On 1 September 2009, the Australian Government announced the establishment of a National 

Resources Sector Employment Taskforce with the responsibility of developing a comprehensive 

workforce development plan taking into account the planned major resource, energy and 

related infrastructure projects in Australia and their employment and skill requirements. 

The first Term of Reference for the Taskforce says ‘develop a comprehensive workforce 

development plan taking into account the planned major resource, energy and related 

infrastructure projects in Australia and their employment and skill requirements’ including 

‘examining the projects that are coming on stream over the next 5 years; mapping the 

geographic location of jobs, the number and type of jobs, the skills and quantity needed 

for nominated durations; when workers will be required and what skills needs can currently 

be met’. The Department of Education, Employment and Workplace Relations (DEEWR) 

is providing the Secretariat to the Taskforce and is conducting a survey on behalf of the 

Taskforce to gauge the likely demand for labour and skills needed for resources sector projects 

by examining projects coming on stream over the next five years which exceed $40 million in 

total capital expenditure. The survey addresses both the demand for labour and skills during 

the construction of major projects, and ongoing operational needs. 

The survey also aims to gain a better understanding of employee turnover within the sector, 

how employers recruit people with the needed skills and to what extent employers are having 

difficulty in recruiting people with the required skills. 

Confidentiality of information 

This survey is being conducted in accordance with the requirements of the Privacy Act 1988 

and is being developed under the strict guidelines and requirements of the Australian Bureau 

of Statistics. Personal information collected and stored by the Taskforce Secretariat during the 

survey will be used solely for the purpose of determining the overall demand for labour and 

skills in the resources sector, and no organisational level data will be published. 

Any information that your company provides to the Taskforce Secretariat will be treated as 

confidential. Company level data will only be able to be accessed by authorised members of 

the DEEWR Taskforce Secretariat. Company level data will be destroyed at the conclusion of 

the survey. 

The results of the survey will be used in preparing a comprehensive workforce development 

plan that addresses labour and skills shortage issues in the resources sector. The final report 

of the Taskforce may present aggregated information at the national and state level. It is 

expected that aggregated data published in the final report may be of use to State Training 

Authorities. 

Australian Government Statistical Clearing House Approval Number 02080 – 01 

1 of 16 


Due Date 

Please respond to the survey by 9 th April, either online, or by using the attached reply paid 

envelope or by emailing your response to us. If you wish to access the survey online or 

the electronic version of this form, please contact the Taskforce Secretariat by phone on 

(02)61217827 or by email at NRSET.survey@deewr.gov.au. 

Mail: 

Email: 

National Resources Sector Employment Taskforce Secretariat 

Department of Education, Employment and Workplace Relations 

GPO Box 9880 

CANBERRA ACT 2601 

NRSET.survey@deewr.gov.au 

Help available 

If you have any queries about any aspect of the survey or require assistance to complete the 

survey before the due date, please contact us by telephone on (02) 6121 7827 or by email to: 

NRSET.survey@deewr.gov.au 

How to answer 

• Please make your responses as brief as possible 

• If you are not sure about an answer, give your best approximation. 

• If you need more room to provide your response, please use an Attachment page at the end of 

this survey. Please write the question number and your response. 


2 of 16 


Q1. What is the name of your company and business unit? 

Q2. What are your position and contact details? 

Q3. What is your company’s address? 


3 of 16 


Q4. What are the main mining and construction industries in which your company 

operates? (tick all that apply) 

Note: Industry based on Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006 (Revision 1.0) 

(Latest) cat no: 1292.0 

Mining Coal Mining (ANZSIC Group 110) 

Oil and Gas Extraction (ANZSIC Group 120) 

Metal Ore Mining (ANZSIC Group 131) 

Non-Metallic Mineral Mining 

(includes Construction Material Mining (ANZSIC Group 141)and Mining n.e.c. 

(ANZSIC Group 142)) 

Exploration and Other Mining Support Services (includes: Exploration (ANZSIC 

Group 151) and Other Mining Services (ANZSIC Group 152)) 

Construction Heavy and Civil Engineering Construction (ANZSIC Group 310) 

Land development and site preparation services (ANZSIC Group 321) 

Other Construction Services (ANZSIC Group 329) 

Other (Please specify) 

Q5. In terms of your projects are you (tick one or more box): 

A resource company Yes * No * 

A contractor Yes * No * 

A labour hire company Yes * No * 


4 of 16 


The next question is about how many employees you have now. 

Employees include: 

• People who receive remuneration in wages or salary; and 

• Are engaged under a contract of service (an employment contract); and 

• Take directions from their employer/supervisor/manager/foreman on how the work is 

performed. 

and exclude: 

• Persons paid by commission only; 

• Non-salaried directors; 

• Self employed persons such as a consultants and contractors; and 

• Volunteers. 

Examples of mining, construction and related occupations 

Note: Occupation based on 1220.0 - ANZSCO - Australian and New Zealand Standard Classification of 

Occupations, First Edition, Revision 1 Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 25/06/2009 

• Managers – Production Managers (Mining), Construction Project Managers, Engineering Managers, 

etc. 

• Professionals – Accountants, External/Internal Auditors, Cartographers, Surveyors, Electrical 

Engineers, Electronics Engineers, Civil Engineers, Industrial Engineers, Mining Engineers (excluding 

Petroleum), Petroleum Engineers, Geologists, Quantity Surveyors, etc. 

• Technicians and Trades Workers – Construction Estimators, Surveying or Cartographic Technicians, 

Civil Engineering Draftspersons/Technicians, Metallurgical or Materials Technicians, Mine Deputies, 

Sheet Metal Trades Workers, Metal Fabricators, Welders, Fitters and Turners, Fitter-Welders, 

Carpenters and Joiners, Electricians, Electrical Linesworkers, Technical Cable Jointers, Electronic 

Instrument Trades Workers (General/Special Class), Gas or Petroleum Operators, etc. 

• Machinery Operators and Drivers – Crane, Hoist or Lift Operators, Drillers, Miners, Shot Firers, 

Mineral Ore Treatment Plant Operators, Sheet Metal Workers (Second Class), Conveyor Belt 

Operators, Cement Production Plant Operators, Concrete Batching Plant Operators, Concrete 

Pump Operators, Earthmoving Plant Operators (General), Backhoe Operators, Bulldozer Operators, 

Excavator Operators, Grader Operators, Railway Track Plant Operators, Truck Drivers, Storepersons, 

etc. 

• Labourers – Builder’s Labourers, Earthmoving Labourers, Concreters, Construction Riggers, 

Scaffolders, Steel Fixers, Structural Steel Erectors, Crane Chasers, Driller’s Assistants, Laggers, 

Mining Support Workers (Mineral Ore Processing Labourers), Surveyor’s Assistants, etc. 

• Other – (includes occupations from Clerical and Administrative Workers, Sales Workers and 

Community and Personal Service Workers) Contract Administrators, Program or Project 

Administrators, Office Managers, Logistics Clerks, Purchasing Officers, General Clerks, 

Bookkeepers, Accounting Clerks, Cooks, Cleaners and Laundry Workers etc. 


5 of 16 


Question 6 is in two parts: part (a) is for the construction phase, part (b) is for projects in the 

operational phase. Please use one form per project. 

Q6. How many people do you currently employ by project? Note: Only include direct 

employees and not workers employed by your contractors undertaking work on the 

project. Please copy more tables as required. 

* Fly-in Fly-out (FIFO) workforce refers to workers who commute to the workplace and are provided with food and 

accommodation during their stay at the work-site. Workers travel from their usual place of residence and remain 

there for a period of time, returning home between rosters. Also referred to as long distance commuting. FIFO 

includes Ship-in Ship-out, Drive-in Drive-out, or other transport combinations. 

PROJECT NAME: Insert Project Name 

Is your company undertaking this project development? Yes/No 

LOCATION: Insert Location of Project (including State/Territory) 

(a) CONSTRUCTION PHASE DUE TO END: Insert Month/Year 

OCCUPATION (add occupations as required) 

Managers (e.g. superintendents, supervisors and foremen positions) 

Professionals (e.g. civil engineer, geotechnical engineer) 

Technicians (e.g. building and engineering technicians) 

Tradespersons (e.g. electricians, plumbers) 

Machinery Operators and Drivers (e.g. crane, hoist and lift operators) 

Labourers (building and plumbing labourers, concreters) 

Other 

Total employees 

How many of the total are FIFO* employees? 

(b) OPERATIONAL PHASE DUE TO END: Insert Month/Year 

OCCUPATION (add occupations as required) 

Managers (e.g. superintendents, supervisors and foremen positions) 

Professionals (e.g. mechanical engineer) 

Technicians (e.g. pipe testing technician) 

Tradespersons (e.g. metal fitters and machinists) 

Machinery Operators and Drivers (e.g. drillers, miners and shot firers) 

Labourers (e.g. crane chaser, driller’s assistant, lagger) 

Other 

Total employees 

How many of the total are FIFO* employees? 

Number of employees 

Number of employees 


6 of 16 


The next two questions (7 and 8) are about future projects over the next five years. 

Q7. What are the major resource sector projects expected to exceed $40 million in total 

capital expenditure that your company will be recruiting for over the next five years? 

Project name 

Is your company 

undertaking this project 

development? (Yes/No) 

If “No” who is? 

Project type 

(e.g. Gas, Gold) 

Location 

Commencement year for 

construction 

End year for construction 

Is the new project an 

expansion of an existing 

one? Yes/No 

If an expansion of existing 

project then how many 

staff does the project 

currently employ? 


7 of 16 


For question 8 please refer to the occupations list from Q6. 

Q8. For the projects listed in Question 7, how many employees (by occupation) do you 

anticipate requiring for each major project you will be involved in over the next five 

years? If some of these positions are expected to be covered by existing employees please 

exclude them from projected employees. 

Note: Only include direct employees and not workers employed by your contractors undertaking work on the 

project. Use one table per major project. Please copy more tables as required. 

PROJECT NAME: Insert Project Name 

LOCATION: Insert Location of Project (including State/Territory) 

CONSTRUCTION PHASE DUE TO BEGIN: 

Insert Month/Year 

CONSTRUCTION PHASE DUE TO END: Insert Month/Year 

NUMBER OF 

EMPLOYEES 

Managers (e.g. superintendents, supervisors and 

foremen positions) 

Professionals (e.g. civil engineer, geotechnical 

engineer) 

Technicians (e.g. building and engineering 

technicians) 

Tradespersons (e.g. electricians, plumbers) 

Machinery Operators and Drivers (e.g. crane, hoist 

and lift operators) 

Labourers (building and plumbing labourers, 

concreters) 

Other 

OPERATIONAL PHASE DUE TO BEGIN: Insert Month/Year 

Managers (e.g. superintendents, supervisors and 

foremen positions) 

Professionals (e.g. mechanical engineer) 

Technicians (e.g. pipe testing technician) 

Tradespersons (e.g. metal fitters and machinists) 

Machinery Operators and Drivers (e.g. drillers, 

miners and shot firers) 

Labourers (e.g. crane chaser, driller’s assistant, 

lagger) 

Other 

NUMBER OF 

EMPLOYEES 

NUMBER OF 

MAN-MONTHS 

NUMBER OF 

MAN-MONTHS 

WHEN 

WILL THEY 

COMMENCE? 

e.g. March 2010 

FOR HOW LONG 

WILL THEY BE 

NEEDED? 


8 of 16 


Q9. What proportion of gross wages did you spend on training in the financial year 2008-09? 

Proportion of company’s gross wages 

% 

Q10. Based on the proportion of gross wages you spent on training (see Q9.) what percentage 

was spent on the following categories: 

Qualifications attained % 

Attainment of formal qualifications? (e.g. 50%) 

(includes nationally/state recognised qualifications e.g. Bachelor degree level, Advanced 

diploma & diploma level, Certificate level) 

Attainment of skills sets? (e.g. 25%) 

(includes single units (of competency) or combinations of units which link to a licence or 

regulatory requirement, or defined industry need) 

Non-accredited training? (e.g. 25%) 

(includes privately funded training onsite or organised by the company at another private venue 

e.g. training with Caterpillar to operate Caterpillar equipment) 

Other training? (e.g. 0%) 

Total 100% 

Q11. How many people did you train in the financial year 2008–09? And of these people, 

how many did you train through the publicly funded system (e.g. through Australian 

Apprenticeships)? 

How many people did you train in the financial year 2008–09? 

How many people did you train through the publicly funded system? 


9 of 16 


Q12. Do you have any current vacancies (permanent or temporary) for positions in the 

resources sector? (Tick one box) 

Yes * 

No * 

Q13. Has your company experienced recruitment difficulties in the last 6 months for resources 

projects? (Tick one box) 

Yes * Go to Q14 

No * Go to Q16 

Q14. If you answered Yes at Q13: 

Rate the level of recruitment difficulty your company has experienced. (Tick one box) 

Level of difficulty 

Minor 

Moderate 

Difficult 

Managed to fill vacancies, but dissatisfied with the pool of 

candidates overall (with respect to size of pool, qualifications of 

candidates, etc). 

Able to fill vacancies only after extensive effort (e.g. after readvertising 

a position). 

Unable to fill a vacancy satisfactorily. 

Tick one box 

Australian Government Statistical Clearing House Approval Number 02080 -- 01 

10 of 16 


Q15. Provide information on those occupations where you have experienced the most 

significant (i.e. “Moderate” or “Difficult”) recruitment difficulties. 

Occupation 

Refer to Mining, Construction and 

Related Occupations in question 6 

for examples of occupations. 

Length of recruitment from advertisement 

1 = Up to a fortnight 

2 = Up to 1 month 

3 = From 1 to 3 months 

4 = Over 3 months 

(Please select one) 


11 of 16 


Q16. What was your company’s annual labour turnover rate (in percentage terms) among 

employees for each of the past three calendar years (2007, 2008 and 2009)? 

Calendar year % 

2007 

2008 

2009 

Q17. Based on previous experience, what are the most common reasons for employee turnover 

in your company? (Number in order of most common reason) 

Moved to another resources sector company 

Moved to another construction company 

Moved to another industry 

Left the labour force 


Q18. For those who leave the industry what are the most common reasons? 

(Number in order of most common reason) 

Short-term contractual arrangements 

Working conditions 

Preparedness to FIFO 

Lifestyle reasons 

Family reasons 

To pursue a new career 



12 of 16 


Q19. How does your organisation most commonly recruit? 

(Number in order of most commonly used for each employee type) 

Company website 

Onsite recruitment or personal 

contacts 

Newspaper advertisements 

Internet advertisements 

Trade journal advertisements 

Word of mouth 

Job Services Australia providers 

Other recruitment companies 

Local labour hire 

Skilled migration 

Other (please specify) 

Employee type 

Professionals Trades Operators Other 

Q20. Which government employment and training initiatives have you accessed to recruit 

new labour (e.g. Australian Apprenticeship Commencement Incentive, Australian 

Apprenticeship Completion Incentive)? Was the initiative useful? How could the initiative 

be made more responsive to the labour needs of the resources sector? 

Name of government 

employment and training 

initiative 

Was the initiative useful? 

How could the initiative be 

made more responsive to the 

labour needs of the resources 

sector? 

If you have suggestions for other government initiatives please include them at Q21. 


13 of 16 


Q21. Do you have any suggestions to improve the availability of labour and skills for the 

resources sector? 


14 of 16 


Thank you for taking the time to complete this survey 

Please indicate the approximate time that it has taken to complete the survey. 

______________ Hours _______________ Minutes 

To help us clarify any specific issues, please provide a contact name and details. 

• Answering this question is OPTIONAL. 

• This question will be used to clarify any specific issues related to the questionnaire only. 

• See page 1 for the confidentiality note. 

Name: __________________________________________________________________________________ 

Phone: (________)________________________________________________________________________ 

Area code 

Email: __________________________________________________________________________________ 


15 of 16 


(Please write question number and response) 


16 of 16 


Appendix VII—Acronyms 

AAC 

ABARE 

AIG/ACA 

ATN 

ABS 

ACED 

ACTU 

AMWU 

ANET 

APESMA 

APPEA 

AQF 

AWU 

AMWU 

BER 

BMA 

CDEP 

CFMEU 

COAG 

CMEWA 

CPSISC 

CSG-LNG 

CSM-LNG 

DEEWR 

DIAC 

DIDO 

DITRDLG 

DRET 

EMA 

ENS 

ENSOL 

ESQ 

FIFO 

GAGAL 

GDP 

GTA 

GTO 

GSM 

LNG 

LPG 

MCA 

MCE 

MCMPR 

MEA 

MOU 

MTEC 

MCTEE 

NCVER 

NESA 

Australian Apprenticeship Centre 

Australian Bureau of Agricultural and Resource Economics 

Australian Industry Group/ Australian Constructors Association 

Australian Technology Network 

Australian Bureau of Statistics 

Australian Council of Engineering Deans 

Australian Council of Trade Unions 

Australian Manufacturing Workers Union 

Australian National Engineering Taskforce 

Association of Professional Engineers, Scientists and Managers 

Australian Petroleum Production & Exploration Association 

Australian Qualifications Framework 

Australian Workers Union 

Australian Manufacturing Workers Union 

Building the Education Revolution 

Billiton Mitsubishi Alliance 

Community Development Employment Project 

Construction, Forestry, Mining and Energy Union 

Council of Australian Governments 

Chamber Minerals and Energy of Western Australia 

Construction and Property Services Industry Skills Council 

Coal Seam Gas-Liquefied Natural Gas 

Coal Seam Methane-Liquified Natural Gas 

Department of Education, Employment and Workplace Relations 

Department of Immigration and Citizenship 

Drive-in Drive-out 

Department of Infrastructure, Transport, Regional Development & Local Government 

Department of Resources, Energy & Tourism 

Enterprise Migration Agreement 

Employer Nomination Scheme 

Employer Nomination Scheme Occupations List 

Energy Skills Queensland 

Fly-In Fly-Out 

Gladstone Area Group Apprentices Ltd 

Gross Domestic Product 

Group Training Australia 

Group Training Organisation 

General Skills Migration 

Liquefied Natural Gas 

Liquefied Petroleum Gas 

Minerals Council of Australia 

Ministerial Council on Energy 

Ministerial Council for Mineral and Petroleum Resources 

Mining Education Australia 

Memorandum of Understanding 

Minerals Tertiary Education Council 

Ministerial Council for Tertiary Education and Employment 

National Centre for Vocational Education Research 

National Employment Services Association 


NLS 

NRSET 

QMEA 

QRC 

RPL 

RCC 

RTO 

RITC 

RBA 

RSMS 

SOL 

SVI 

TAFE 

VET 

WELD 

National Licensing System 

National Resources Sector Employment Taskforce 

Queensland Minerals and Energy Academy 

Queensland Resources Council 

Recognition of Prior Learning 

Recognition of Current Competencies 

Registered Training Organisation 

Resources Industry Training Council 

Reserve Bank of Australia 

Regional Sponsored Migration Scheme 

Skilled Occupation List 

Skilled Vacancy Index 

Technical and Further Education 

Vocational Education and Training 

Working on Employment, Learning and Development 


Appendix VIII—References 

Access Economics 2009, Economic Modelling of Skills Demand, 22 October 2009, Skills 

Australia, Canberra, viewed January 2010, www.deewr.gov.au/skills/programs/ 

skillsaustralia/documents/ae_skills_demand.pdf 

Australian Bureau of Agricultural and Resource Economics (ABARE) 2010, Australian 

Commodities March quarter 2010, vol. 17, no. 1, ABARE, Canberra. 

Australian Bureau of Statistics (ABS) 2007, 2006 Census tables online: field of study by industry, 

cat. no. 2068.0, ABS, Canberra. 

Australian Bureau of Statistics (ABS) 2008a, Labour force survey November 2008, cat. no. 

6291.0.55.003, ABS, Canberra. 

Australian Bureau of Statistics 2008b, Labour mobility survey, February 2008, cat. no. 6209.0. 

ABS, Canberra. 

Australian Bureau of Statistics (ABS) 2010a, Labour force: Four quarter average to February 

2010, cat. no. 6291.0.55.003, ABS, Canberra. 

Australian Bureau of Statistics (ABS) 2010b, Construction work done, Australia: Four quarter 

average to December 2009, cat. no. 8755.0, ABS, Canberra. 

Australian Bureau of Statistics (ABS) 2010c, Labour force, Australia, February 2010, cat. no. 

6202.0, ABS, Canberra. 

Australian Bureau of Statistics (ABS) 2010d, Labour price index: March quarter 2010, cat. no. 

6345.0, ABS, Canberra, 

Australian Treasury 2010a, Budget papers, Statement 2: Economic outlook, p. 2–21, 

Commonwealth of Australia, Canberra, viewed 21 May 2010, www.budget.gov.au/2010-11/ 

content/bp1/download/bp1_bst2.pdf 

Australian Treasury 2010b, The resource super profits tax: a fair return to the nation, 

Commonwealth of Australia, Canberra. 

Construction and Property Services Industry Skills Council (CPSISC) 2010. Environmental 

Scan 2010–11, CPSISC, Canberra, viewed 12 May 2010. www.cpsisc.com.au/resources/ 

Corporate%20Plan/FINAL_CPSISC_Environmental_Scan_120309.pdf 

Department of Education, Employment and Workplace Relations (DEEWR) 2010a, Employment 

outlook for construction, p. 6, DEEWR, Canberra 

Department of Education, Employment and Workplace Relations (DEEWR) 2010b, Employment 

outlook for mining, p. 6, DEEWR, Canberra. 

Department of Education, Employment and Workplace Relations (DEEWR) 2010c, Small area 

labour markets Australia, December quarter 2009, DEEWR, Canberra. 

Department of Immigration and Citizenship (DIAC) 2010, Subclass 457 Business (Long Stay) 

State/Territory Summary Report, 2008-09 Financial year to 31 March 2010, DIAC, Canberra. 


Energy Skills Queensland 2009, Part A – Workforce planning report to inform the workforce 

& competency development strategy plan for the Queensland coal seam gas/liquefied natural 

gas industry, Energy Skills Queensland, Brisbane. 

Graduate Careers Australia 2009, Graduate destinations 2008; the report of the graduate 

destinations survey, Graduate Careers Australia Ltd, Melbourne. 

Heuris Partners Ltd 2008, Planning for resources growth in the Pilbara: Employment and 

Population Projections to 2020, Pilbara Industry’s Community Council (PICC), Melbourne, 

www.catalyst.org/publication/82/the-bottom-line-connecting-corporate-performanceand-gender-diversity 

Karmel, T & Mlotkowski, P 2010, Tradespeople for the resources sector: projections 2010–20, 

National Centre for Vocational Education Research, Adelaide. 

Lampard, M et al. 2010, Minerals and energy, major development projects – April 2010 listing, 

ABARE, Canberra, viewed 28 May 2010, www.abareconomics.com/publications_html/ 

energy/energy_10/ME10_Apr.pdf 

Lowry, D Molloy, S & Tan, Y 2006, The labour force outlook for the mineral resources sector: 

2005 to 2015, National Institute of Labour Studies (NILS), Adelaide. 

Mining Industry Skills Centre Inc. (MISC) 2009, Resources Industry Heartbeat Project, 

MISC, Brisbane. 

National Centre for Vocational Education (NCVER) 2010, Historical Time Series of 

Apprenticeships and Traineeships in Australia, from 1963, NCVER, Adelaide. 

National Resources Sector Employment Taskforce 2010, Resourcing the future: discussion 

paper, Department of Education, Employment and Workplace Relations, Canberra, 

viewed 11 May 2010, www.deewr.gov.au/Skills/Programs/National/nrset/Pages/ 

ResourcingtheFuture.aspx 

Queensland Major Contractors Association 2010, 2010 Major projects report: Queensland 

engineering construction outlook, QMCA, Brisbane. 

Reserve Bank of Australia 2010, Statement on monetary policy May 2010, RBA’s Statements 

on Monetary Policy, RBA, Sydney, viewed 4 June 2010, www.rba.gov.au/publications/ 

smp/2010/may/html/index.html 

Richardson, D 2010, ‘Minerals in the Australian economy’, paper presented at the National 

Peak Minerals Forum, The Australian Institute, Canberra, 29 April 2010. 

Shah, C and Burke, G 2004, Labour Mobility: Demographic, Labour Force and Education Effects 

and Implications for VET, Monash University Centre for the Economics of Education and 

Training, Melbourne. 

SkillsDMC 2010, Environmental scan 2010: building capacity and capability at enterprises to 

support workforce planning & development, SkillsDMC, Sydney. 

South Australia Training and Skills Comission (SATSC) 2009 , Skills for Jobs: Priorities for 

Developing South Australia’s Workforce, South Australia Training and Skills Commission, 

Adelaide. 


WA Department of Training and Workforce Development 2010, Workforce development – 

planning and coordination, Pit Crew data quoted p. 6, Government of WA, Perth. 

Waller, M 2010, Planning for resources growth in the Pilbara: revised employment and 

population projections to 2020, Heuris Partners, Melbourne.

National Resources Sector Employment Taskforce Technical Paper

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