Employment in Australia's mining industry is the highest it's been since 2012 as the industry continues to be the key driver of the Australian economy through uncertain times.

According to the Australian Bureau of Statistics (ABS), around 270,000 people were employed full-time or part-time in mining as of May 2021. The mining industry also fosters apprenticeships to ensure a steady supply of local labour in the coming years.

With many mining companies having faced skills shortages due to COVID-19 restrictions, employment is likely to rise further now that many restrictions have been lifted and companies can hire the personnel they need to increase production and meet the high demand for iron ore, gold and other commodities.

Mining employment by state

Employment grew the most in Queensland, with an additional 8,100 new mining jobs over the quarter, though Victoria has the highest proportional growth at 52 per cent or 3,800 new workers. South Australia also reported its largest intake since November 2014 with 32 per cent employment growth.

However, principal mining state Western Australia only experienced 2.12 per cent growth or 2,400 new jobs during the quarter as remote mines struggled to access the personnel they needed due to coronavirus restrictions. This skills shortage is expected to continue for at least the next two years unless action is taken.

The WA government has proposed permanently relocating workers to remote mines rather than relying on the fly-in, fly-out (FIFO) method, while the federal government is appealing to skilled overseas workers to help fill the labour gaps.

Apprenticeship opportunities

Apprentice and trainee commencements in the mining industry were also at a 5-year high as of the end of 2020, with almost 300,000 people working for mining companies in these capacities. The mining industry is one of the major providers of apprenticeships for young Australians, many of whom have been struggling with job prospects during the pandemic.

This growth is credited to the federal government's Boosting Apprenticeship Commencements program, which provided a 50 per cent wage subsidy for apprenticeships beginning before October 2021. A further 5,000 new apprenticeship positions are expected to be created in mining over the next few years to help support the industry and regional economies.

Promoting diversity

Mining employers have also sought to break down barriers to building their workforce by making mining careers more inclusive and appealing to people of all backgrounds, particularly women.

Special training programs addressing imbalances and improving the experience of workers are already proving successful. A recent survey by the Australasian Institute of Mining and Metallurgy (AusIMM) found that 55 per cent of women in resources rated their workplace as very diverse to average compared to just 35 per cent a year earlier.

About Resources & Energy Group (ASX: REZ)

Barclay Pearce Capital client Resources & Energy Group (ASX: REZ) is a gold explorer, developer and producer, with projects in Western Australia and Queensland. ​REZ is focused on developing highly prospective and low-risk Australian mining regions.

Resources & Energy was formed in 2005, and has operated as a gold exploration and development company since 2015.

To keep up to date with their news and progress, and for more information about gold investment as a whole, subscribe to the Resources & Energy Group Chairman's List.