AusIMM Professional Employment Survey October 2015

Transcription

1 AusIMM Professional Employment Survey 2015 October

2 Table of contents Section Page Introduction 3 Respondent demographics 4 The unemployed 12 The employed 23 Future outlook 27 Students 33 2

3 Introduction In June 2015 the AusIMM invited all members to complete its annual professional employment survey. There were 2,266 respondents to this year s survey, representing 26 per cent of those invited. The survey provides an insight into the current state of the minerals professional employment market, as well as the future outlook. The 2015 survey summary results show; Unemployment rate is 16.2 per cent for Australian-based minerals professionals (up from 11.2 per cent in 2014). Globally the unemployment rate is 14.9 per cent per cent of the workforce experienced voluntary or forced redundancy in the last twelve months per cent have been unemployed for more than six months (29.6 per cent for more than 12 months). The mining engineering profession has experienced the largest increase in the number of unemployed professionals per cent of professionals have experienced pressure to work additional and unpaid overtime. The following slides will present additional graphs and information not able to be included in the AusIMM Bulletin Report. Year-on-year data are presented were possible; modifications and additions to the survey mean that year-on-year data are not always available. 3

4 Respondent demographics 4

5 Respondent demographics Demographic analysis from this survey indicated the sample is consistent with AusIMM s underlying membership distribution. An overwhelming majority of survey respondents reside within Australia. Within Australia, a majority of respondents were from the major mining states. These distributions are presented on page 6. The age and gender profile of respondents, presented on page 7, were consistent with the underlying membership distribution of the AusIMM. Over 90 per cent of survey respondents were classified as part of the workforce (page 7). This meant that they were either employed in any form including casual, part-time, full-time or voluntary; or actively looking for work. The return to study cohort, whilst small, has increased steadily over the past two years and is now nearly 300 per cent greater in 2015 than it was in For all the demographics described in this report, only those whose sample size was sufficient are presented in the analysis. For example, as only 4 respondents indicated they were below 20 years of age, this category was not statistically explored. 5

6 Distribution of all respondents 0.7% 1.4% 1.5% 2.0% 13.1% 81.2% Papua New Guinea China Indonesia New Zealand Rest of World Australia 38.9% Distribution of Australia based respondents 25.3% 15.3% 11.3% 6.1% 1.6% 0.7% 0.7% WA QLD NSW VIC SA TAS ACT NT 6

7 Demographic split by status, age and gender Workforce 90.2% Student 4.3% Retired 3.3% Career Break 1.2% Return to Study 0.8% Parental/Family/Carer Leave 0.2% 21.4% 21.7% 25.4% 13.3% 12.8% 14.4% Female 0.2% 4.0% < % Male 7

8 Workforce demographics Breakdowns of the workforce by commodity, work lifestyle and discipline are shown on pages Almost 50 per cent of respondents are in mining or process engineering roles (metallurgy / chemical / materials engineering or geotechnical engineering). Geoscience is also a very large cohort (43.5 per cent of the workforce) with exploration and mining geologists being the major sub-disciplines at 22.2 and 14.5 per cent of the total workforce respectively. For the first time in an AusIMM professional employment survey a question was asked regarding working arrangement. This revealed a majority of respondents were based in a major city. The second largest cohort represented those who are FIFO (Fly-In-Fly-Out) or DIDO (Drive-In-Drive-Out) workers who predominantly live on-site for their work commitments. Remote residential workers were those who live in mining or outback towns such as Mt Isa, Kalgoorlie etc., for the purpose of being close to work. For all the demographics described here, only those whose sample size was sufficient are presented in the analysis. For example, as only 4 respondents indicated they were below 20 years of age, this category was not statistically explored. 8

9 Distribution of respondents by discipline Other 4.7% OH&S 0.3% Community and Environment 1.8% Geotech 4.6% Met/Chem/Mat Engineering 15.0% Mining Eng 30.1% Geoscience 22.2% 14.5% 6.8% 43.5% (Exploration) (Mining) (Other) 9

10 Distribution of respondents by commodity Across Commodities 32.2% Gold 21.4% Coal 15.9% Copper 8.7% Metalliferous Other 8.2% Iron 7.8% Uranium 0.5% Other 5.2% 10

11 Demographic split by employment type Major City Base 51.4% Full time Employment 67.3% FIFO/DIDO 22.1% Self employed 10.4% Contracting 7.4% Remote Residential 13.2% Part time Employment 6.1% Work From Home 5.5% Other 5.7% Other 7.8% Casual Employment 3.0% 11

12 The unemployed 12

13 Unemployment Global minerals and mining sector unemployment has risen steadily since The Australian unemployment rate for minerals professionals has increased from 12.2 in 2014 to 16.2 per cent in 2015, this is nearly three times the seasonally adjusted national Australian unemployment rate of 6.1 per cent in June, 2015 (ABS Cat ). The rise in unemployment is seen across all minerals professionals, regardless of commodity or discipline. When analysed by commodity, iron ore professionals are experiencing the highest unemployment and have also seen the biggest year on year rise; unemployment nearly doubled from 11.9 per cent in 2014 to 23.2 per cent in Geoscience and Management roles remain at the top of discipline unemployment; 16.5 per cent and 15.6 per cent respectively. In particular, exploration geologists showed the highest unemployment overall at 20.8 per cent, with mine geologists sitting at 10.4 per cent unemployment. Of disciplines, mining engineers experienced the most significant year on year rise, jumping from 8.7 per cent in 2014 to 14.9 per cent in For both discipline and commodity, unemployment is higher across the board when restricted to Australian-based members only. This is shown on page 16. The trend of rising employment is also shown with respect to location within Australia, with combined data from South Australia and Northern Territory being the only outlier showing a fall in unemployment. Regarding the different working arrangements the mining industry offers, FIFO workers show the highest overall unemployment whilst those working from home, predominantly self-employed consultants, indicated the lowest unemployment but highest underemployment. The unemployment rate of men (15.4 per cent) is significantly greater than women (11.4 per cent). analysing just Australia; 11.4 per cent for women and 17.0 per cent for men. This becomes more pronounced when 13

14 Unemployment continued The unemployed cohort can be subdivided into different groups based on their experiences in the past 12 months. A significant group, 29.6 per cent, has been unemployed for greater than 12 months and can be classified as long-term unemployed. This group has spent the entire year preceding the 2015 professional employment survey actively searching for work and has been unable to find employment. Overall, this group is the most amenable to accepting non-preferred conditions such as lower salary or a non-preferred location, and is most likely to accept a role outside of the industry. A second group are those unemployed who have experienced a forced redundancy in the previous 12 months and have been unable to find work. This group constitutes 5 per cent of the total workforce and one third of all unemployed. Within this group, nearly 1 in 5 began the year unemployed, managed to secure a role, and was subsequently made redundant after a few months. A final group worth exploring are graduating students who have entered the workforce during the past 12 months. This group is significantly overrepresented in the unemployment cohort overall, featuring a 35 per cent unemployment rate despite the overall trend of the unemployment rate decreasing with age. It is important to note that this is a small group, representing only 1.5 per cent of the workforce; however these are students who have obtained and retained AusIMM membership which indicate serious interest in the mining industry long term. However, 1 in 5 unemployed in this group have indicated they are focusing their job search outside the minerals and mining sector, and a further 1 in 2 have indicated they would accept a role outside the sector per cent of unemployed respondents have indicated that they are looking for work with a focus on jobs outside of the minerals and mining sector. Younger professionals are more willing to leave the sector per cent of respondents under 45 reported that they are focusing on jobs outside of the minerals sector compared to 9.6 per cent of respondents over 45. Unemployed women, regardless of their job-search focus, have indicated that they are more inclined to accept a job outside the industry. 14

15 AusIMM's Workforce Snapshot; Australian based and All Members 100% 90% 80% 70% 60% 76.3% 69.1% 62.6% 55.9% 77.1% 70.0% 64.1% 57.6% 50% 40% 30% 20% 10% 0% 2.4% 1.7% 3.4% 3.3% 17.2% 17.4% 17.2% 17.4% 12.6% 13.2% 7.3% 7.0% 7.5% 7.9% 19.6% 2.1% 18.9% 6.8% 7.2% 10.9% 12.2% 16.2% 1.9% 10.0% 11.2% 14.9% Australian based Members All Members Unemployment Underemployment Overemployment Working Outside Sector Satisfactory Employment 15

16 Unemployment rate by location 10.0% 10.9% 11.2% 12.2% 14.9% 16.2% 1.9% 1.7% 5.2% 5.7% 6.1% 6.1% All Members Unemployment Australia based Members Unemployment Aus National Unemployment (ABS July trend) 17.3% 13.2% 16.3% 13.5% 11.4% 9.4% 19.6% 13.7% 12.6% 18.4% 6.3% 5.1% 10.0% 7.8% NSW & ACT SA & NT QLD TAS & VIC WA New Zealand Rest of World

17 Unemployment breakdown by age, gender and working arrangement Less than % 8.7% 10.1% 11.2% 9.4% 15.4% 11.2% 11.4% 30 to to % 11.5% 10.3% 11.3% 1.9% 1.8% Male Female 50 to % 19.2% FIFO or DIDO 2.1% 18.6% 60 to % 22.3% Remote residential Major City 2.8% 13.9% 11.1% 7.8% 70 and Over 13.2% 16.3% Work from Home Other 4.8% 10.2% 18.4% 32.4% Unemployment Underemployment 17

18 Unemployment by commodity and discipline Metaliferous Other Iron 9.3% 9.7% 11.9% 23.2% Environmental Science/Engineering Mining Engineering 4.3% 10.8% 8.7% 14.9% Gold 14.0% 16.1% Met/Mat/Chem Eng 8.5% 12.7% Copper 9.0% 10.7% Management Roles Across Disciplines 12.8% 15.6% Coal 8.8% 11.0% Geotechnical Engineering 5.2% 10.5% Across Commodities 11.2% 17.3% Geoscience 15.1% 16.5%

19 Comparison of Australia based member unemployment with all member unemployment Iron 23.2% 24.4% Discipline Commodity Gold Copper Coal Met/Chem/Mat Eng Geoscience Mining Engineering 16.1% 18.3% 10.7% 13.0% 11.0% 11.6% 12.7% 13.5% 16.5% 17.6% 14.9% 16.9% All Member Unemployment Australia based Member Unemployment 19

20 Length of time unemployed 29.7% 23.7% 22.0% 20.2% 22.2% 30.1% 25.3% 29.6% 28.4% 16.2% 14.6% 13.9% 5.7% 10.3% 7.9% Less Than 1 Month 1 to 3 Months 3 to 6 Months 6 to 12 Months More than 12 Months

21 Job considerations; I am open to considering a job that. Is outside the industry 55.8% 63.1% 70.1% Involves lower responsibility 66.7% 69.3% 88.9% Has a lower salary 78.3% 81.9% 93.4% Has non preferred working hours 53.9% 58.0% 83.4% Is in a non preferred location 60.3% 59.0% 83.4%

22 Job search outlook and those employed outside the industry 70.5% 10.7% 15.9% 3.0% I am confident of getting a job in the near future I expect it will take me at least 6 months to find a new job I am uncertain how long it will take me to find a new job Other 22

23 The employed 23

24 Employed The survey collected information about the employer-employee relationship. Respondents were asked to indicate whether they have experienced an increase, decrease, or no change over the last year for a number of measures centring on support, e.g. professional development, and working conditions, for example responsibility. Considered together, they are intended to provide insight into the current employment conditions. These measures are presented on page 25. Salary and rostered days off (RDOs) have been reported by the majority of members to have decreased, whilst working hours and responsibility have significantly increased. FIFO members have reported an overall decrease in general onsite amenities, a decrease in the quality and variety of food provided on-site, and a decrease in support for their commute between home and site. This indicates that for less pay and support, minerals professionals are working longer hours, more days, and taking on greater responsibility. In a separate question, 37 per cent of survey respondents indicated they felt pressure or expectation to work unpaid overtime or extra hours. There is also a high level of churn in the industry; 18.3 per cent of the workforce changed employers over the last 12 months. Approximately 50 per cent of these movements were motivated by redundancies. Overall, 16.4 per cent of the workforce experienced a redundancy in the previous 12 months; more than 80 per cent of these redundancies were forced. 1 in 6 professionals who underwent a forced redundancy were rehired by the same employer. Approximately 3 in 4 of these individuals indicated at least one of the following; a decrease in salary or rostered days off, or an increase in working hours. For the first time in an AusIMM professional employment survey, minerals professionals employed within the mining industry were distinguished from those employed in another, unrelated sector. 3.3 per cent of AusIMM members globally indicated they were employed outside of the minerals and mining sector, increasing to 3.4 per cent of members within Australia. Globally, there is a significant gender difference; the employment rate outside the minerals and mining sector is far higher for women (8.2 per cent) compared to men (2.5 per cent). 24

25 Employer employee measures Net Change Professional Development Support 41.6% 49.5% 8.9% -32.7% Responsibility 9.1% 50.8% 40.0% 30.9% Salary 29.6% 47.8% 22.6% -7.1% Rostered Days Off 13.4% 79.1% 7.5% -5.9% Working Hours 15.6% 52.3% 32.2% 16.6% FIFO Commute Support 25.0% 70.1% 4.9% -20.1% FIFO Food Provided On site 28.2% 64.1% 7.7% -20.5% FIFO On site Amenities 19.0% 73.7% 7.3% -11.7% Decrease No Change Increase 25

26 Workplace pressure and turnover Felt Pressure/Expectation to Work Unpaid Overtime/Extra Hours 37.0% Changed Employers 18.3% Forced Redundancy 13.3% Voluntary Redundancy 3.1% Employed outside the industry in 2015 Overall Males Females 3.3% 2.5% 8.2% 26

27 Future outlook 27

28 Future outlook Respondents were asked about their personal career expectations across the next 12 months, and their expectations of employment opportunities for the minerals industry as a whole over the next 12 months. A key observation here is that this is a measure of the future outlook, therefore those who ve indicated they see no change in the industry are, given the current downturn, indicating that they expect the industry to remain depressed. The greater than 50 per cent of respondents who foresee fewer opportunities are in fact saying that they expect the industry to worsen from its current state. Another observation is the pattern of greater personal opportunity than industry opportunity. This is due to the proportion of people that, despite a struggling industry, are in stable jobs, or may have had the door of opportunity opened for them through taking on increased responsibility due to surrounding redundancies. This does not, however, change the fact that personal opportunities, like the industry outlook, are seen to be deteriorating. There are consistently negative expectations across all demographics. Retired members displayed the most pessimistic of outlooks, with planned retirees less positive that those who indicated they retired due to lack of opportunity. 28

29 Personal career expectations for the next 12 months 34.2% 34.6% 34.2% 38.1% 37.3% 40.0% 27.7% 28.1% 25.9% Increased Opportunity No Change Decreased Opportunity

30 Expectations of mining industry opportunity over the next 12 months 59.8% 50.8% 53.0% 30.7% 30.0% 19.1% 18.5% 17.0% 21.2% Increased Opportunity No Change Decreased Opportunity

31 Breakdown of respondents indicating decreased industry opportunity Retired (Planned) 64.3% Retired (Lack of Opportunity) 57.1% Unemployed 56.1% Career Break 55.6% Employed 52.1% Return to Study 50.0% Average 53.0% 31

32 Breakdown of personal outlook by major demographics Iron 17.2% 23.4% 59.3% Gender Discipline Commodity Gold Copper Coal Met/Chem/Mat Eng Geoscience Mining Engineering Female Male 34.4% 26.8% 19.1% 20.8% 26.0% 27.7% 24.3% 26.1% 29.9% 35.1% 35.4% 34.2% 32.0% 36.2% 33.9% 34.2% 35.6% 38.1% 45.5% 45.1% 42.0% 36.2% 41.8% 39.7% Management Role 25.9% 34.5% 39.5% Increased Opportunity No Change Decreased Opportunity 32

33 Students 33

34 Student snapshot Overall, students are slightly more pessimistic than optimistic about their job search prospects postgraduation. Men are more optimistic about their career prospects than women as shown on page 34. Final year students are far more pessimistic about their job search prospects; only 16.3 per cent of final year students indicated they were confident about finding work when they graduate. This number includes the 7.3 per cent of students who have already secured a graduate role. This has fallen significantly from 2014 where 19.3 per cent of students indicating they had already begun their job search reported that they had secured a graduate position. In line with this uncertainty, students are keeping their options open; 64 per cent reported that they are looking for work in industries other than minerals per cent of all the student members and 48.9 per cent final year students indicated that they had obtained industry placements in the form of vacation work or part-time employment. This is even across gender; however men have been more active in their search for these placements. Students expressed an overwhelming interest in minimum wage internships and short-term (less than 1 month) unpaid placements for the purposes of gaining exposure and industry experience per cent of students are also interested in longer term unpaid placements for the purpose of gaining experience. 34

35 Student expectations; Are you confident of finding work upon graduation? 42.9% 39.3% 31.3% 33.7% 36.8% 34.3% 34.3% 29.5% 17.9% No Unsure Yes Female Male All Students 35

36 Student success and development; Have you gained industry experience? 39.3% 38.8% 38.9% 35.7% 46.3% 43.2% 25.0% 14.9% 17.9% Yes No Searching but Unsuccessful No Haven't Looked Female Male All Students 36

37 Student interest in opportunities; Would you be interested in the following work placement opportunities? 92.9% 92.5% 92.6% 92.9% 86.6% 88.4% 71.4% 67.2% 68.4% Minimum Wage Internships Short Term Unpaid Internships (Less than 1 Month) Female Male All Students Long Term Unpaid Internships (1 3 Months) 37