Geoscientist unemployment in Australia: Some improvement but still a struggle to find work

Australian Institute of Geoscientists > Employment > Geoscientist unemployment in Australia: Some improvement but still a struggle to find work

The results of the latest Australian Geoscientist Employment Survey conducted by the Australian Institute of Geoscientists show that while there has been some improvement in employment prospects, Australia’s geoscientists continue to struggle in response to a sustained downturn in employment prospects.

The Institute has also warned however, that only governments can take the action needed to break the current investment and job growth bottleneck which has created the ‘perfect storm’ for the exploration and mining sector of over-regulation and low commodity prices for Australia’s mineral resources.

The September 2014 survey attracted an excellent response.  In all, 954 geoscientists completed the survey – about one in eight geoscientists in Australia according to the most recent Australian census figures.

The unemployment rate amongst Australia’s geoscientists at the end of September 2014 was 13.5%, down from 15.4% in June 2014.  The underemployment rate in the latest survey amongst self-employed geoscientists was 15.4%, a slight increase over the rate of 15.0% recorded in June 2014 and continuing a trend evident since the end of 2013.

GeoUnemploymentSep2014

“Geoscientists in Australia continued to experience difficulty in obtaining and sustaining employment in the third quarter of 2014,” AIG President, Mr Wayne Spilsbury, said.  “In contrast to the sharp increase in employment following the global economic downturn in 2009, any recovery in employment within the geoscience profession has been much slower this time.”

A question was added to the June 2014 survey to assess the degree of underemployment being experienced by self-employed consultants and contractors.  Results showed that 41% of those responding as being underemployed, were achieving less than one tenth of their desired workload. A further 16% were achieving between one tenth and one quarter of their desired work.  In the latest September survey, these figures were 30% and 20% respectively – considered to represent a small sign of improvement in the sector despite the increase in the number of geoscientists reporting being underemployed overall.  “If we reclassify self-employed geoscientists achieving less than ten percent of their desired workload as essentially unemployed, the unemployment rate increases from 13.5% to 18% – almost one in five professional geoscientists”, Mr Spilsbury said.

In the latest survey, one third of unemployed and underemployed respondents had been without work for three months, a further 17% for between three and six months, 16% for between six and 12 months, and the remaining third for more than 12 months.

Three quarters of underemployed and underemployed geoscientists were not confident of returning to full time employment in their chosen field within 12 months.  One in 12 were seeking long-term employment outside the profession.

“Geoscientists in Australia continued to experience difficulty in obtaining and sustaining employment in the third quarter of 2014,” AIG President, Mr Wayne Spilsbury, said.  “In contrast to the sharp increase in employment following the global economic downturn in 2009, any recovery in employment within the geoscience profession has been much slower this time.”

A question was added to the June 2014 survey to assess the degree of underemployment being experienced by self-employed consultants and contractors.  Results showed that 41% of those responding as being underemployed, were achieving less than one tenth of their desired workload. A further 16% were achieving between one tenth and one quarter of their desired work.  In the latest September survey, these figures were 30% and 20% respectively – considered to represent a small sign of improvement in the sector despite the increase in the number of geoscientists reporting being underemployed overall.  “If we reclassify self-employed geoscientists achieving less than ten percent of their desired workload as essentially unemployed, the unemployment rate increases from 13.5% to 18% – almost one in five professional geoscientists”, Mr Spilsbury said.

The following table summarises the unemployment and underemployment rates observed for Western Australia and Queensland = Australia’s “mining states”.

StateUnempSep2014

An improvement in the unemployment rate was observed in every state except Queensland, where unemployment increased by almost six percent.  A modest decrease in the under-employment rate observed in Western Australia was not evident in other states.

Some 80% of respondents were in or seeking full-time employment, while 5% were in or seeking part-time work and 15% were self-employed.  Some 60% of respondents worked or are seeking work in mineral exploration, 16% in metalliferous mining, 7,7% in coal and petroleum exploration and production, and 6% in engineering geology and groundwater resource exploration and management.

“The latest survey shows the first signs for almost a year of a possible improvement in selective employment opportunities,” Mr Spilsbury said.  “As the proportion of geoscientists working in mineral exploration and mining reflects the health of Australia’s exploration and mining industries, and a barometer for the overall outlook for resources, I hope that we are seeing, in this survey, the beginning of an upturn – but it is too early and too gradual to be confident that this is the case.  “The slow recovery from the downturn in 2012 and 2013 is something that we have not seen previously since AIG’s survey series commenced in 2009.  “We remain however in an environment where Australian-listed, junior exploration and mining companies are critically undercapitalised and finding it difficult to attract new investment – the fundamental driver of geoscientist employment rates. “The Federal Government’s promised Exploration Development Incentive is yet to be introduced and State Governments have yet to act to reduce compliance requirements that are choking a range of industries, all at a time when commodity prices are depressed creating a less than ideal investment climate.  “It is something akin to a perfect storm for exploration and mining, but one that governments can help to clear”.