Mining Professional Unemployment Skyrockets whilst Exports Boom. Data released today in the AusIMM's annual Mining Professional Employment Survey shows that 1 in 6 Australian mining industry professionals is out of work. The current 16.2% unemployment rate is in stark contrast to the height of the boom in 2012 when only 1.7% was reported as unemployed. In comparison, Australia's national unemployment rate sits at a respectable 6.1%. Where will we be in 12 months time?? 

The mining employment downturn is appearing in contrast to record levels of production occurring across the mining industry. Notably, iron ore and coal exports have continued to smash records whilst nickel, gold, and copper production have been continuing to rise off recent lows.

The AusIMM points out that whilst geoscientists have been the first hit in the rush to cut costs and preserve short-term shareholder value, the significant growth in unemployment over the last 12 months has been frontline mining and geotechnical engineers, and metallurgists. Those left behind, whilst thankful, are met with increased responsibilities and heightened pressure to deliver more, with less.

My observation of this alarming trend in workforce reduction is manifesting itself in many ways:

• Loss of corporate memory, leading to the future repeating of mistakes made in the past; 
  
• Loss of the talent pool as professionals move into other industries in search of secure employment; 
  
• Conditions at camp or in the office, along with training and development opportunities have evaporated; 
  
• Development of culture of fear as the mining industry casualties its workforce, reinforced by the knowledge that there are increasing numbers of talented people knocking on the door for a/your job; and 
  
• Burn-out and demotivation as those left behind are pushed to work harder to cover the lost output of their former workmates. 

Unfortunately, it doesn't end there. Minerals exploration expenditure has contracted by more than 60% in the past three years to levels not seen since 2006. These exploration projects support not only the frontline geologists and drilling companies, but their output flows through to the backroom engineering professionals that convert resources to projects ready for the (unnecessarily) arduous approvals journey for one day producing jobs for regional Australia and the tax dollars our governments are so keen to spend.

The mining industry is digging itself into a hole - figuratively, not literally - by wasting the talents it has fostered in the past decade; by putting exploration and development of the next generation of mines on the backburner for fairer economic times; and burning out the talent that they have left to hold the fort as prices decline, but volumes grow.

So, what's the solution? Those that have been in mining for 15 years or more know it, poor old Gen Y is going to hate it, and it's going to be painful for everyone involved. It is coming. You can feel it, almost taste it.