North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Canada's mining industry could face a labor shortfall of more than 27,000 workers over the next 10 years - and that is the best case scenario, with no industry growth over the period, according to a report by the Mining Industry Training and Adjustment Council. "Prospecting the Future: Meeting Human Resources Challenges in the Canadian Minerals and Metals Industry" is an analysis of the situation that was published Aug. 24.

In the worst case, with high growth in Canadian mining, the workforce shortage could reach almost 71,000. Since 2002, mining GDP growth has been about twice the rate of the Canadian economy, the report says. More than 50 percent of workers in the mining industry are aged 40 to 54, an age group that represents 39 percent of the total Canadian workforce. There is a markedly lower proportion of employees below age 30 in the sector, particularly in the skilled trades and semi-skilled mining occupations.

The Canadian mining sector's labor force expanded by 3.6 percent between 2003 and 2004, compared to an average annual growth of approximately 2 percent over the past decade. Economic indicators point to continued growth in the industry for a number of years.

"With this looming skills shortage, the career potential is great for the right people with the right skill set - particularly for skilled-trade workers, engineers and geoscientists," said the council's Executive Director Paul Hebert. "Some people continue to assume mining is primarily a brute-force occupation, in fact, mining has evolved to become a highly skilled and technical industry."

Report doesn't include oil sands

The report focused on the top 10 minerals and metals by value of production in Canada: gold, nickel, potash, coal, copper, iron ore, cement, zinc, sand/gravel/stone and diamonds. The report does not include the oil sands workforce. It is based on country-wide research that includes surveys of 48 mining companies, 46 supplier and contracting companies, 694 individuals and 19 educational institutions.

The majority of the mining labor force works in Ontario (33 percent) and Quebec (27 percent), followed by British Columbia with 11 percent and Saskatchewan with 10 percent. However, the importance of the minerals and metals industry is increasing dramatically in Canada's north, the report says. Between 2003 and 2004 the Northwest Territories saw an estimated 122-percent increase in exploration expenditures, while Nunavut saw a 43-percent increase. Much of the northern growth stems from the emergence of the Canadian diamond industry. Diamond production volume increased by more than 340 percent between 2001 and 2004.

Planning for retirement should be a key priority for the mining sector, the report says, because 40 percent of employees state they intend to retire within the next 10 years, taking with them an average of 21.4 years of mining sector experience. Ramifications could include increased production costs associated with lower worker productivity among new entrants, and a potential negative impact on safety due to an influx of inexperienced workers.

Companies need to plan further ahead

Companies rarely plan more than a year ahead, but should start to do so, the report advises. They should take a more proactive approach to developing and identifying key successors to workers who will retire. They should also encourage non-traditional groups to work in the industry, the report stresses. Women accounted for only 13 percent of all mining sector employees in 2003, compared to the national average of 46.9 percent of the workforce. Women are generally not employed in coal mining and tend to be concentrated in the non-production occupations. More than 95 percent of the workforce associated with production occupations is male.

Aboriginal employees make up approximately 4.8 percent of the mining sector workforce. This rate is much higher than in other industries and in the Canadian workforce overall, where the percentage of aboriginals is only 2.6 percent. "The minerals and metals industry has increasingly recognized the aboriginal labor force as an important human resource, especially for firms operating in remote locations," the report says. At the Ekati diamond mine in the Northwest Territories, 39 percent of the operation's 800 direct jobs are held by aboriginals.

"There is evidence that aboriginal workers are under-represented in the more highly skilled positions and are often hired for entry-level positions that do not require certification," the report says. "The lack of educational opportunities for aboriginal persons in certain regions is a contributing factor." The growing gap between the needs of industry in the north and the skills available in the local labor force could be addressed through increased emphasis on community-based or distance learning, the report suggests.

Competition for Canadian graduates

Less than 3 percent of mining sector workers are members of other visible minorities, compared with 12.6 percent in the total Canadian workforce. Potential immigrants with mining experience may be having a hard time getting into the country because the points-based system is based heavily on formal educational attainment, the report says. Another problem is the difficulty in obtaining Canadian recognition of foreign credentials.

An estimated 13,800 students will enroll in mining-related university programs over the next decade. Keeping them in Canada is another challenge. Competition for Canadian graduates is intense at the global level and many are lured away by the prospect of work in more "exotic" parts of the world, even though wages and benefits in Canada are very good, according to the report. Average weekly wages were C$1,257.91 in coal mining 2003, and C$1,159.50 in metal ore mining.

"Limited awareness and inaccurate perceptions about the industry are critical challenges in terms of attracting workers," the report says. "The public - particularly young people - are often not familiar with the industry. Marketing and awareness campaigns to promote the modern mining industry and improve perceptions are important."