Western Australia witnesses some signs of economic vitality after the agony of the end of the mining boom. It had resulted in a sharp fall in salaries. The state experienced mining jobs losses, reduced property prices and a migration towards the eastern states which had started to witness a housing boom and increased infrastructure spending along with job creation.
Hiring has increased by about 70% compared to last year. The previous year was luckless seeing the minimal hiring of contract nature. Hiring was mostly done in healthcare, education, government, non-profit, and age care sectors and helped the economy. The present year has seen a positive response in the marketplace. The rise in jobs is irregular and is mostly provided by the contractors and big operators. The turnaround is predominantly found in iron ore coal and gold sectors. There is a jobs growth in these areas.
There are big-time operators like Rio and BHP as also the mining support services. There is a 54% increase in refinement and production level. The sub-sectors include directional drilling, re-drilling services cementing services, mine draining as well as pumping services. The salaries are gradually increasing again in WA. A point to note is seeing the impact of the boom in the East coast caused by government spending in WA.
A Management Consultant said that the market is slowly rebalancing, and attaining equilibrium after many years of cutting cost. The decade saw the market in an anxious state, as there was a huge demand for the product and all efforts were directed to get that product in the market.
It culminated in a heavy increase in construction activities and operating assets worked hard. Many organizations lost focus on the cost component of their business, seeing a huge increase in workforce.
In the last three years construction projects were completed and there were few new resources and energy projects to be taken up. There was a focus on greater productivity and removing staff. The resources and energy sector harshly went for cutting costs. They resorted to reduced numbers and organizational restructuring.
Many organizations went for major cuts but are now looking to move forward and fill up some roles. There is a thrust on targeted placements. Matters related to capital works and maintenance were put on hold or were totally deferred in order to cut costs, but this had affected utilization and production. Now there is a move to undertake these works. A sense of normalcy is being restored and the organizations are thinking and working smartly.