Extract from The Guardian
Mining shed 22,000 jobs 2013–2015, but health and community services
created almost double that number, education added 34,000 and tourism
27,000
Jobs lost in the death of Queensland’s mining boom have been dwarfed
by new jobs in service industries, pointing to a bankable future a
so-called “rocks and crops” economy, according to a new report.
The report by thinktank The Australia Institute highlights figures showing record job losses in mining have been outstripped by a wave of job creation in every key service sector from tourism to education.
While mining shed 22,000 jobs between 2013 and 2015, health and community services created new jobs for almost double that number of workers.
Jobs growth in education (34,000), tourism-related services (27,000) and professional services (26,000) also more than made up for the decline in resources jobs.
While workers appear to be surviving the declining mining industry, Australia’s big banks are having more trouble, with separate research suggesting mining companies will soon start defaulting on loans.
Tom Swann, co-author of the Australia Institute report, said data from the Australian Bureau of Statistics showed “marked improvements” in Queensland job growth “after some volatile years”.
“Last year jobs growth in Queensland hit a seven-year high, the unemployment rate fell, and all this while the participation edged upwards and the mining industry shed a record amount of jobs,” he said.
“Most of the growth has come from services, which already provide four in five jobs in Queensland. These industries are well placed to contribute new jobs in coming years.
“The easing of the high dollar and cost pressures associated with the phase-out of mining construction creates a really positive situation for jobs growth in many industries in Queensland.”
The report outlines projections from the commonwealth Department of Employment to show most industries apart from mining, especially services, will drive jobs growth.
A surge in building-related construction is predicted to pick up the slack from mining-related construction. Food product manufacturing – by far the biggest manufacturing industry in Queensland – is expected to buck a declining trend in other parts of the sector.
Banks, on the other hand, appear to be having more trouble with the mining bust.
ANZ announced last month it was writing-down $100m of bad debt from mining company loan defaults. Now a report from Bernstein Research has suggested ANZ and the Commonwealth Bank could face even larger losses from recent fossil fuel lending, the Australian Financial Review has reported.
According to the report, ANZ and CBA have each lent about $1bn to fossil fuel exploration and production companies, much of that before oil prices plummeted in 2014, raising concerns about the companies’ ability to repay the loans.
Recent research has shown Australia’s big four banks have continued lending to fossil fuel companies, amounting to about $5.5bn in 2015.
Tim Buckley, an analyst at the Institute for Energy Economics & Financial Analysis said Australian banks “to date have clearly underestimated the magnitude and breadth of stranded asset risk”.
He said the risk is bigger than indicated by the Bernstein report since it just examined exploration and production companies. Associated infrastructure companies have also been having trouble servicing their debts. Wiggins Island Coal Export Terminal in Gladstone in central Queensland, for example, has reportedly been at risk of defaulting on its future debt payments.
Swann said turning Queensland’s job growth “prospects into a reality” would be the focus of a summit at parliament house next week where senior Palaszczuk government minister, including deputy premier Jackie Trad and treasurer Curtis Pitt, will speak.
The report by thinktank The Australia Institute highlights figures showing record job losses in mining have been outstripped by a wave of job creation in every key service sector from tourism to education.
While mining shed 22,000 jobs between 2013 and 2015, health and community services created new jobs for almost double that number of workers.
Jobs growth in education (34,000), tourism-related services (27,000) and professional services (26,000) also more than made up for the decline in resources jobs.
While workers appear to be surviving the declining mining industry, Australia’s big banks are having more trouble, with separate research suggesting mining companies will soon start defaulting on loans.
Tom Swann, co-author of the Australia Institute report, said data from the Australian Bureau of Statistics showed “marked improvements” in Queensland job growth “after some volatile years”.
“Last year jobs growth in Queensland hit a seven-year high, the unemployment rate fell, and all this while the participation edged upwards and the mining industry shed a record amount of jobs,” he said.
“Most of the growth has come from services, which already provide four in five jobs in Queensland. These industries are well placed to contribute new jobs in coming years.
“The easing of the high dollar and cost pressures associated with the phase-out of mining construction creates a really positive situation for jobs growth in many industries in Queensland.”
The report outlines projections from the commonwealth Department of Employment to show most industries apart from mining, especially services, will drive jobs growth.
A surge in building-related construction is predicted to pick up the slack from mining-related construction. Food product manufacturing – by far the biggest manufacturing industry in Queensland – is expected to buck a declining trend in other parts of the sector.
Banks, on the other hand, appear to be having more trouble with the mining bust.
ANZ announced last month it was writing-down $100m of bad debt from mining company loan defaults. Now a report from Bernstein Research has suggested ANZ and the Commonwealth Bank could face even larger losses from recent fossil fuel lending, the Australian Financial Review has reported.
According to the report, ANZ and CBA have each lent about $1bn to fossil fuel exploration and production companies, much of that before oil prices plummeted in 2014, raising concerns about the companies’ ability to repay the loans.
Recent research has shown Australia’s big four banks have continued lending to fossil fuel companies, amounting to about $5.5bn in 2015.
Tim Buckley, an analyst at the Institute for Energy Economics & Financial Analysis said Australian banks “to date have clearly underestimated the magnitude and breadth of stranded asset risk”.
He said the risk is bigger than indicated by the Bernstein report since it just examined exploration and production companies. Associated infrastructure companies have also been having trouble servicing their debts. Wiggins Island Coal Export Terminal in Gladstone in central Queensland, for example, has reportedly been at risk of defaulting on its future debt payments.
Swann said turning Queensland’s job growth “prospects into a reality” would be the focus of a summit at parliament house next week where senior Palaszczuk government minister, including deputy premier Jackie Trad and treasurer Curtis Pitt, will speak.
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