South Australian Resources Sector Hiring Intentions. Quarter 2 FY October Summary
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1 South Australian Resources Sector Hiring Intentions Quarter 2 FY October Summary
2 The Resources and Engineering Skills Alliance collects and analyses South Australian resources sector jobs data and has done so for more than five years. The RESA South Australia Mining and Resources Sector Hiring Intentions Report 1 provides a lead indicator of hiring intentions and market sentiment. In October 98 mining and resources advertisements for jobs were placed for roles in South Australia, which is slightly down on September s figures but higher than at the same time last year which still suggests future positive growth. October s results are a strong starting figure for Q2 FY16-17, continuation of the growth seems likely, as shown in Graph 2, where the number of advertisements for jobs in the South Australian Mining Sector 2 has had two quarters of positive growth. This indicates the mining jobs market is showing signs of recovery, but this is yet to be confirmed as a trend. Graph 1 Mining Jobs Advertised South Australia Monthly Jan Oct Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Graph 2 Quarterly Job Advertisements Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY12-13 FY13-14 FY14-15 FY15-16 FY RESA monitors online job advertisements for vacancies for occupations in the resources sector based in South Australia. Where a single vacancy is for multiple positions it is counted as one vacancy. 2 Using ABS definition of Mining to include: Coal Mining, Oil & Gas Extraction, Metal Ore Mining, Other Mining and Services to Mining 1
3 INDEX DATA Job Ads analysis for 2016 indicates that since June, the number of jobs advertised has been growing when indexed in a simple comparison against the corresponding month in the previous year. Graph 3 shows this year s result as a percentage of the previous year s advertisements. Five months of positive growth provides a leading indicator of employment intentions (labour demand) in the South Australian Mining Industry. Graph Monthly Job Ads Indexed 180% 160% 140% 130% 145% 144% 164% 131% 148% 120% 100% 80% 75% 84% % 56% 48% 40% 20% 0% 2
4 JOB CLASSIFICATION Graph 4 shows that in October 2016, the greatest job role demand (40%) was for professionals, followed by trades, operators and entry level occupations. This appears to be consistent with projects being in planning and development stage and the quest for efficiency on site. Graph 4 Advertisements - October 2016 Job Classification 4% Entry Level 40% 29% Operator Trade Technician/Post Trade Supervisor/Manager 5% 4% 18% Professional 3
5 LOCATION The majority of positions advertised in October were in the Adelaide metropolitan area. This may be a false indication of location, as it includes agencies based in the metro area that are advertising for roles and operations in regional South Australia. Of note this month is that 50% of the roles advertised were explicitly for non-metropolitan South Australia, a positive indicator for regional employment as projects in the regions are developed and operated. Graph 5 2% Job Advertisements - Oct 2016 by region 1% Whyalla & Eyre Peninsula 10% Coober Pedy & Outback SA Adelaide 50% 37% Fleurieu Peninsula & Kangaroo Island Yorke Peninsula & Clare Valley 4
6 CONCLUSION Although it is too early to identify a clear trend, since June 2016 there have been four positive months of job advertisements for Mining roles. This is an early indicator of hiring intentions leading to growing employment in the sector. RESA s data distinguishes between mining and energy related job ads and we note that in October, 3% of advertisements occupations in the Oil and Gas sub sector a slight increase from previous months. We believe these figures provide early insight of market sentiment in the mining subsector and its response to very difficult market conditions and expect to be able to determine if mining sub-sector jobs growth follows, this will be confirmed in the months ahead. The Mining sector continues to provide important social and economic contributions to South Australia, it is apparent that mining activity will continue to provide opportunities for employment in metro and regional areas in the near future. ABOUT THIS REPORT The South Australia Mining and Energy Jobs Report is a quarterly indicator compiled by RESA based upon publicly available data. This report focusses on job advertisements as an indicator of employment trends rather than as a summary of total employment or economic activity in the sector, and as such is intended as a measure of market sentiment. 5
7 Resources and Engineering Skills Alliance RESA - Resources and Engineering Skills Alliance For more information about this analysis, contact RESA, at
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