The Australian Resources and Energy Employer Association has released modelling investigating the estimated labour required to operate new, expansion and restarted mining, oil and gas projects expected to enter production by December 2029.
Resources and Energy Workforce Forecast: 2024-2029 indicates that Western Australia’s resources and energy industry will need a minimum of 11,000 new workers before the end of 2029.
The report lists 107 national major projects as either committed or advanced in feasibility and considered likely to proceed within the five-year period.
Western Australia has 48 projects in its investment pipeline which, according to AREEA’s modelling based on Department of Industry project data, are forecast to create demand for 11,065 new workers.
AREEA’s CEO, Steve Knott AM, said, “Western Australia remains the powerhouse of Australia’s resources and energy industry, accounting for 40 per cent of the national forecast workforce growth over the next five years.”
Despite this, the industry lost 35,300 workers nationally in the year to May 2024, with the majority (31,000) from Western Australia.
The sector currently directly employs 144,900 West Australians, a decrease of 17.6 per cent from 175,900 in May 2023 and the lowest Western Australian resources and energy workforce since 2021.
Mr Knott said the state’s pipeline was still “diverse and prosperous” with eleven energy (gas, LNG and oil) projects driving $55.7 billion or 66 per cent of total investment over the next five years.
Of 37 mining projects, iron ore will spur demand for 2,095 workers, led by Southdown, Western Range and Lake Giles – all by the end of 2026. Seven gold projects, including Hemi gold and the KCGM Mill Expansion, should require nearly 1,700 new workers by the end of 2027.
While lithium potential (seven projects, 970 workers) has eased, together with other critical minerals and rare earths (seven projects,1,000 workers), it will continue to support a buoyant labour market.
Four copper projects – with West Musgrave the jewel in the crown – will require around 1,200 workers by the end of 2026.
A range of other minerals, including nickel, cobalt and alumina, make up eight projects requiring about 1,500 workers across the forecast period.
Mr Knott said the Federal Government’s industrial relations reforms exacerbated the sector’s challenges.
“On top of international price volatility and the competitive squeeze on commodities including nickel and lithium, the Federal Government has failed to articulate how new IR laws will address the nation’s falling productivity growth and help secure more business investment.”
Mr Knott said iron ore, coal and gas helped Australia’s export earnings reach a record $466 billion in the year to June 2023.
“They delivered the first back-to-back Commonwealth surpluses in 16 years – without which vital services such as Medicare, the NDIS, hospitals, schools and aged care would be deprived of critical investment,” Mr Knott said.
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