PERTH (miningweekly.com) – The resources sector was expected to shed about 12 300 jobs by November 2018, new research from the Department of Employment revealed this week.

Employment in the mining sector was expected to decrease by about 4.5% over the next five years to 2018, representing a significant slowdown compared with the growth rate of 66.2% recorded in the five years to May this year.

The majority of the job losses would be recorded in the metal mining sector, which was expected to reduce workforce numbers by some 6 200, while exploration staff would also be reduced by some 5 400. The coal mining industry was expected to lose some 5 100 employees during this time.

By contrast, the Department of Employment predicted that construction material mining would increase staff figures by about 300 over the five years to November 2018.

The Department of Employment pointed out that since May 2012, employment growth has stalled in the mining sector, growing only by 4 000, or 1.5%, over the last 12 months to May, as mineral prices fell and construction activity in the sector plateaued.

Weaker confidence in the deferral of a number of major resource projects has also been caused by the slower growth in demand from China, as well as the lower commodity prices.

The mining sector currently employs some 267 700 workers, accounting for 2.3% of Australia’s total workforce.

The largest contributor to current employment was the metals mining sector, which employs some 80 800 people, with iron-ore mining leading the charge, employing 37.4% of this figure while gold mining employed 26.7% and copper mining 11.8%.

The second-largest contributor to employment in the mining industry is the coal sector, employing 57 800 people, or 23.3% of industry employment, while mining support services employed some 34 100 staff.

The fastest rate of employment growth over the last five-year period was recorded in the oil and gas sector, which saw employment increased by 15 900, or by 125.3%, with almost 85% of this employment growth having occurred over the past two years.