Mining’s ripple effect to capital city jobs

Mining’s ripple effect to capital city jobs

Posted on Thursday, March 22 2012 at 2:31 PM

It’s no coincidence that Perth, located in the nation’s leading mining state has seen greater spin-off job growth from the natural resources sector than other major capital cities over the past 12 months while Adelaide, Brisbane and Sydney are in warm-up mode, according to job website Seek.

The rapidly growing mining industry’s ability to create a ripple effect from the mine site to the major capital city is exactly what the slow moving housing market has been waiting for.

As the job market heats up again in Perth and employee competition weakens this is likely to lead to potential wage increases and a major confidence boost for investors and homebuyers.

According to Seek, in just 12 months, Perth job advertisements in the mining, resources and energy sector saw a 39 per cent spike in and around the capital, while even further ahead in job growth for Perth were: sport and recreation (42 per cent); manufacturing, transport and logistics (46 per cent); marketing and communications (69 per cent); and self-employment (71 per cent).

In Brisbane over the past 12 months, while the mining, resources and energy sector saw 46 per cent job growth, it wasn’t as far advanced in its spin-off effect on jobs in the capital, with self-employment the only other sector ahead – mind you with an impressive 75 per cent growth – indicating that the spin-off job growth in other sectors is only just warming up.

Adelaide is feeling the effects of the mining sector on new jobs, with 68 per cent job growth in science and technology, 42 per cent growth in marketing and communications roles and a 30 per cent spike in mining, resources and energy roles.

Sydney has seen phenomenal growth in self-employment at 147 per cent, the only sector significantly stimulated so far by the mines. Jobs in and around Sydney in the mining, resources and energy sector grew by 47 per cent over the 12-month period.

While Melbourne has recorded a 54 per cent growth in job ads for the mining, resources and energy sector over the past 12 months and self-employment just behind with 52 per cent growth, many of the mining jobs are fly-in fly-out gigs to South Australia and Western Australia so the flow-on effect to other job sectors is understandably not as significant.

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