The mining boom may have passed, but the sector has not dropped the ball on remuneration. In this article, we want to explore some of the contributing factors to the Australian mining sector’s reputation for strong salaries.

Economic trends always have a few angles, so we’ll be looking at mining’s history in Australia, it’s current state, and where mining looks set to go. Read on here to find out a bit more about what is pushing the salaries in Australia’s mining industry higher and higher.

Mining’s long history in Australia

Mining has a long history in Australia. Take a look back and you’ll see that mining and commodities have played a massive role in the development of Australia as a country. The political and economic development that took place during the Gold Rushes shaped much of Australia’s early history. The Resources Boom of the 60’s saw Australia take its place as a one of the world leading exporters of mineral resources.

The current state of mining

The present day sees mining growing even further in its significance to the Australian economy. Many of the world’s largest multinational mining companies have extensive operations currently active on and under Australian soil, and that is not set to change any time soon.

Mineral exports account for roughly 5.6% of Australia’s GDP. A staggering figure and a solid indicator of the sheer importance of mining to Australia’s economic health.

What is forcing mining wages up?

A strong and consistent demand for Australia’s mineral exports has been the backbone of the growth of wages across the sector, but there are other contributing factors. Wage growth in Australia’s mining industry can also be tracked to the demand for those with unique skills and the willingness to undertake the work.

A skills shortage has driven competition for qualified candidates, but you don’t necessarily need a postgraduate qualification to earn a living. The remote and challenging nature of fly-in/fly-out work has also pushed employers to provide strong remuneration to the select numbers that are willing.

How do these figures compare

The biggest driver of wage growth is productivity. But the caveat is that ‘real’ wage growth is driven by productivity that outstrips inflation. As we’ve touched on, mining has continued to be a productive pillar of the Australian economy.

The same can’t be said for many other sections of the economy. For reasons that are difficult to pin down, many developed countries have found that their wage growth has faltered in recent years. The meteoric growth of wages in Australia’s mining sector has not been mirrored across Australia as a whole.

Find a role in mining with Zoom Recruitment

If you are looking to make the move into Australia’s mining sector, you can start by getting in contact with us at Zoom Recruitment. With over 20 years of experience recruiting for projects across mining, construction, civil and rail projects, we can help you find the role that will see you taking leaps forward in your career.