Australia’s job market in the mining and resources sector has remained strong through to the end of May this year, according to recruitment services company DFP.
May represented a significant rebound in employment prospects, with the DFP mining and resources job index rising from 91.68 to 95.38.
The growth comes despite the context of the federal election, which led to many employers in other sectors delaying the hiring process due to the uncertainty it created.
Job vacancies within the mining and resources industry surged in May, rising four per cent for the month with increases across the sector.
The growth comes off the back of strong commodity prices, resulting in permanent vacancies rising by 3.9 per cent and temporary and contract vacancies increasing by 4.3 per cent.
Both the Reserve Bank of Australia’s non rural bulk commodity price index and the DFP job index rose significantly in May.
The commodity price index rose a further five per cent in May, taking its growth to 18.9 per cent over six months and 33 per cent over 12 months.
DFP suggested that hiring might actually be lagging behind the pace of price increases and despite international political headwinds, there remains significant potential for growth in employment in the mining and resources sector in the months ahead.
Western Australia’s job market continued to lead the way having risen 5.1 per cent alongside Queensland, which returned to positive territory with a 4.4 per cent increase in May.
The report also predicted the result of the federal election will provide further opportunities for job growth in the sector.
A more pro-business Coalition Government would encourage job prospects rather than a Labor Government “with an uncertain attitude between support for the coal industry and support for environmental causes”, according to DFP.
The metal ore sector remains the market leader and has achieved record results, with job vacancies rising another 2.5 per cent in the month, establishing a second successive record high. The last three months have been incredibly strong for the sector, having risen 16.4 per cent.
Demand in coal mining tumbled again and job vacancies remain 8.1 per cent lower year on year, highlighting the prudent attitude of coal producers in the context of the election results.
The DFP report anticipates, however, that the given the election is past, employment prospects will improve in the coal mining sector.
A number of job categories experienced significant growth over the past quarter, including mining and petroleum engineers, production and project managers, geologists and drillers and miners and moving plant operators.