NSW mining sector reports record job creation and spending boost in latest survey
The annual NSW Minerals Council survey reaffirms that although the mining sector continues to navigate changing market conditions, its contribution to employment, investment, and fiscal stability remains significant, supporting the state's economic growth.
The latest findings from the annual member Expenditure Survey conducted by the NSW Minerals Council reveal a significant increase in the contribution of the mining sector to New South Wales' economy. According to the survey, participating mining companies have achieved positive levels of job creation and direct spending.
In the fiscal year under review, these companies collectively generated over 31,500 full-time equivalent positions, marking an increase of more than 600 jobs compared to the preceding year. This increase represents the highest job creation figure within the mining industry recorded in over ten years.
Simultaneously, the survey reveals a substantial injection of $23.6 billion directly into the NSW economy by the mining entities. This figure reflects a marked increase of $6.9 billion, translating to a significant 41% surge in spending compared to the previous year.
Over $3.4 billion was earmarked for wages and salaries, while a significant $14.4 billion was disbursed for goods and services, benefiting nearly 7,000 local businesses in NSW.
The increase in direct spending can be attributed to several factors, including inflation-driven escalations in operational costs such as energy and fuel expenses, alongside rising wage bills.
Additionally, a substantial sum of $5.8 billion found its way into the coffers of the NSW Government in the form of royalties and other taxes, reflecting the financial contribution of the mining industry to the state's revenue.
An economic analysis of the survey data highlights the significant regional impact of mining activities across various parts of NSW. The direct spending by the participating mining companies is shown to constitute a substantial proportion of the Gross Regional Product (GRP) across diverse regions, ranging from 5% for the Northern Region to a significant 25% for the Hunter region.
While acknowledging potential fluctuations in future spending levels due to economic dynamics such as inflation and commodity price variations, Stephen Galilee, CEO of the NSW Minerals Council stressed the importance of the mining industry to the broader NSW economy.
“As our state economy experiences challenging times, the mining sector has continued to make a vital contribution, delivering jobs, investment and economic stability right across NSW,” Galilee said.
“While spending levels may ease in the future as inflation falls and lower coal prices see royalty revenues return to more normal levels, the results of this survey demonstrate how when mining does well, NSW does well.”
To read specific details regarding the mining sector's contribution to the Hunter region here.
