No Signs of Improvement in Latest Australian Geoscientist Employment Survey Results:
Employment prospects for professional geoscientists in Australia further deteriorated in the first six months of 2015 according to results released today from the latest Australian Geoscientist Employment survey conducted this month by the Australian Institute of Geoscientists (AIG).
Even worse are indications in the survey data of just how severely the prolonged downturn in employment prospects for geoscientists is now starting to bite and contributing to serious erosion of Australia’s geoscience capabilities.
At the end of June 2015:
Of the geoscientists describing themselves as being self-employed in the survey, more than 36% were unable to secure more than 10% of their desired workload, pointing to an actual unemployment rate of 22.6%, an increase of 1.2% in the six months since December 2014.
The outcome of these results is a combined unemployment and underemployment rate amongst professional geoscientists in Australia of 35.1% – the highest level recorded since this series of surveys by AIG commenced in June 2009 and well above the 31.3% recorded at the peak of the global financial crisis in September 2009.
No state is considered to have fared better than another in respect of geoscientist employment and underemployment, with combined unemployment and underemployment rates of about 30% or more across the country.
The combined unemployment and underemployment rate in mineral exploration specifically was highest in South Australia at 39.3% of geoscientists employed or seeking work in that sector. This rate was 38% in the Northern Territory, 35% in Queensland, 33% in Western Australia, 30% in NSW and 29% in Victoria. Too few responses were received from Tasmania for valid analysis of the situation affecting that state.
Amongst unemployed and underemployed respondents:
Of those in employment, 43% were confident of retaining their positions for the next 12 months.
Marked changes in areas of employment for geoscientists are evident in the survey results.
The dramatic fall in employment in mineral exploration across Australia is seen as verifying AIG’s warnings, based on previous survey results, of a looming crisis in the mineral exploration sector. Metalliferous mining, usually a relatively stable employment area, also declined.
Apparent growth in employment in energy resource (oil, gas and coal) exploration and production is a welcome surprise considering the uncertainty and low prices affecting the sector.
AIG members responsible for compiling and interpreting the survey results expressed real concerns regarding the apparent shift in where Australian geoscientists are employed. “The decline in mineral exploration employment is real,” according to Mr Andrew Waltho, an AIG Council member and past President of the Institute. “What is most concerning though is that the increase in other sectors isn’t an indication of increased opportunities, but instead due to their representation being increased due to mineral exploration’s decline”. “In effect, they may have become a relatively larger piece of a much smaller pie, which would be a really serious prospect for Australian geoscience” Mr Waltho said.
“Some 626 people, about one in 12 of Australia’s geoscientists, responded to the survey. “Having 35% of a profession struggling to secure work over a period of several years must have an impact.” Mr Waltho said. “This is borne out by the number of respondents indicating that they are seeking permanent work outside their chosen profession increasing every time AIG runs an instalment in this survey series.”
AIG President, Mr Wayne Splisbury, expressed profound concern for the Institute’s members and their families affected by the prolonged downturn in employment prospects.
“Geoscientists are aware of the cyclic nature of geoscientific employment which, in Australia, reflects upswings and downturns in the fate of Australia’s minerals and resource industries. The current downturn, however, is without precedent in the memories of Australian geoscience professionals.
“What’s particularly disconcerting is that loss of employment opportunities in minerals exploration is really starting to bite, not just in terms of the level of exploration activity, but in what this means for a whole range of things. This includes:
Mr Spilsbury also said “Federal and State Government initiatives to promote exploration need to be given a chance to be proven to be effective in arresting the decline in exploration activity evident in Australia for the past three years.”
“We need solid, well targeted actions to improve the attractiveness of exploration investment and enable companies to use that investment productively, rather than negotiating an ever-deepening mire of red tape in relation to securing access to land for exploration in particular.”
The new financial year, for example, provides companies with their first opportunity to submit Exploration Development Incentive claims for eligible greenfields exploration. For these schemes to be truly successful, companies need to be able to explore in the first place and that requires effective, fair and equitable access to land. These measures deserve bipartisan support. The mining industry plays a large role in Australia’s economy and its success plays a big role in maintaining the standard of living of all Australians.
“There are also a discussion needed on extending to self-employed geoscientists those tax provisions that specifically cater for the needs of groups that consistently face cyclical, irregular employment.”
A PDF version of this article is available here.
17th August 2015
