As the mining sector recovers jobs and economic growth across regions blossoms
A RENEWED mining boom is generating jobs with six-figure salaries and fuelling real estate prices in regional Queensland. These are the hot spots.
QLD Business
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JOBS with six-figure salaries are going begging and a real estate boom is blossoming as the mining industry wakes from a seven-year slumber and fuels an economic resurgence across regional Queensland.
In the far northwestern town of Mount Isa, global demand for copper and zinc is underwriting an economic resurgence steadily pushing up real estate prices, and frustrating bosses who cannot find enough workers to fill positions.
With around 1400 vacancies in the Queensland mining sector – half of them paying more than $100,000 a year – mining bosses have found themselves up against strong competition in civil construction.
In the coastal city of Mackay the jobs are going begging and the rental market tightening rapidly, while real estate prices have soared in Moranbah in Mackay’s hinterland by more than 20 per cent in the past year.
Mackay Mayor Greg Williamson says there are as many as 2800 jobs (in all sectors) on offer across the wider Mackay region witnessing a mining recovery Cr Williams sees as more sustainable than the early 21st Century boom.
Capital works projects around Mackay including the long-awaited ring road are also bolstering the construction industry.
But it’s the coal prices, which put the spot price for thermal coal near a $120 a tonne, which are creating the long-term employment prospects and fuelling wage growth in a city where growing business confidence has replaced the gloom of the past seven years.
“We are finding that wage creep is back on as those areas outside mining are forced to compete for more workers,’’ Cr Williamson said.
Rental vacancies in Mackay are down to around 1.8 per cent, which means the town is pretty much full, while real estate prices have increased in a few select suburbs by as much as 13 per cent.
“You can still find fairly attractively priced home in Mackay, but if you want them you’d better be quick,’’ Cr Williamson said.
Mount Isa is also bustling on the back of rising zinc and copper prices, despite trade issues between America and China pulling back prices in recent weeks.
Business identities like City and Country principal John Tully plan massive reinvestment in their operations.
Mr Tully will spend up to $1 million upgrading his real estate outfit which employs around 16 people – a massive increase from the six workers he employed in the midst of the mining downturn in 2013.
Mr Tully said Mount Isa’s real problem was labour shortages.
“There are tremendous opportunities out here to earn six figure salaries but employers can’t get the people.’’
He advises couples unable to enter the housing market to head to Mount Isa, invest $200,000 in a reasonable home, earn good money for two years then sell out and return to the city with a healthy home deposit.
“I really think that, four many younger people, a plan like that is the only way they are going to enter the housing market,’’ he says.
Local state MP Robbie Katter said there was no doubt the economy was experiencing an economic resurgence as commodity prices improve.
The mining boom began its sharp decline around 2011 after roaring to life at the start of the 21st Century on the back of price increases for bulk commodities like iron ore, LNG and metallurgical and thermal coal which more than tripled in price from $50 a tonne to more than $150 a tonne.
Queensland Resources Council Chief Executive Ian Macfarlane said the resources sector was now doing the heavy lifting in Queensland jobs creation, providing more than 8400 jobs over the last 12 months to September – the equivalent of a new job every hour.
“Without the contribution of the resources sector, Queensland’s unemployment rate would be 6.7 per cent,’’ he said.
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