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Documentos de Profesional
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Table of Contents
Executive Summary........................................................................................................... 1
National Forecasts of Employment and Hiring Requirements........................................................ 2
Available Talent............................................................................................................................. 3
Understanding the Gaps.............................................................................................................. 4
Mining Labour Market Trends....................................................................................................... 5
Summary..................................................................................................................................... 6
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
5 Available Talent............................................................................................................ 38
Forecasting Available Talent.......................................................................................................... 38
Cumulative Total Available Talent.................................................................................................. 39
Available Talent by Occupation............................................................................................... 40
Labour Market Pressures............................................................................................................. 40
Appendix A......................................................................................................................... 53
Hiring Requirements Forecast Methodology................................................................................. 53
Appendix B......................................................................................................................... 55
Available Talent Model Inputs and Assumptions...................................................................... 55
Employment by Occupation................................................................................................... 55
Migration................................................................................................................................ 55
School Leavers...................................................................................................................... 56
Retirements............................................................................................................................ 56
Other Entrants........................................................................................................................ 56
Other Leavers........................................................................................................................ 56
Appendix C......................................................................................................................... 57
Industry Definition and Scope....................................................................................................... 57
The Mining Sector, Industry Classifications............................................................................. 57
Occupation Classification....................................................................................................... 58
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A MiHR Report
List of Figures
Figure 1: Product Mix, by Province (Share of Mineral Sales)............................................................ 10
Figure 2: Value of Mineral Production, Canada ($ Billions)............................................................... 14
Figure 3: Historical and Forecasted Price Movements of Coal and Copper .................................... 15
Figure 4: Historical and Forecasted Price of Gold and Silver........................................................... 15
Figure 5: Metals and Minerals Price Index (MMPI) and
Mining Gross Domestic Product (GDP)............................................................................. 16
Figure 6: Sales by Industry Segment............................................................................................... 16
Figure 7: Employment in the Mining Industry and its Prominent Sectors (20002012)..................... 18
Figure 8: Gross Domestic Product (GDP) and Employment in Canadas Mining Industry
(19872010).................................................................................................................... 18
Figure 9: Age Group Distribution in Canadian Mining, 2011............................................................ 19
Figure 10: Projected Retirement Rates by Educational Attainment in Canadian Mining...................... 20
Figure 11: Average Hourly Wages for Selected Job Titles in Mining,
by Commodity Produced ($CAD/Hour)............................................................................ 21
Figure 12: Proportion of Mining Labour Force by Highest Level of Educational Attainment ............... 22
Figure 13: Change in Graduation Rates and Gross Domestic Product (GDP) in Canada................... 23
Figure 14: Participation of Aboriginal Peoples, Immigrants and Women............................................ 24
Figure 15: Aboriginal Communities and Mining and Exploration Agreements in Canada, 2012.......... 25
Figure 16: Proportion of Immigrants in Labour Force........................................................................ 26
Figure 17: Proportion of Women in Natural Resource Industries, 2012.............................................. 27
Figure 18: Proportion of Women in Select Mining Occupations......................................................... 28
Figure 19: Cumulative Hiring Requirements Forecasts, by Scenario 20122023........................... 31
Figure 20: Annual Hiring Requirements Forecasts, Baseline Scenario 20132023........................ 32
Figure 21: Annual Hiring Requirements Forecasts, Exploration
Baseline Scenario 20132023..................................................................................... 33
Figure 22: Annual Hiring Requirements Forecasts, Mining (Extraction)
Baseline Scenario 20132023..................................................................................... 34
Figure 23: Annual Hiring Requirements Forecasts, Mineral Processing
Baseline Scenario 20132023..................................................................................... 34
Figure 24: Annual Hiring Requirements Forecasts, Mining Support Services
Baseline Scenario 20132023..................................................................................... 35
Figure 25: A Model of Available Talent for Mining.............................................................................. 39
Figure 26: Focus on Retention and Development
Projected Gaps to 2023.............................................................................................. 46
Figure 27: Increase Minings Share of Talent
Projected Gaps to 2023.............................................................................................. 49
Figure 28: Grow the Talent Pool
Projected Gaps to 2023.............................................................................................. 51
Figure A1: Employment and Hiring Requirements Forecasting Model................................................ 54
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
iii
List of Tables
Table 1: Cumulative Hiring Requirements Forecasts, by Scenario 2015, 2018, 2023................ 2
Table 2: Cumulative Hiring Requirements Forecasts, by Industry Sector
Baseline Scenario to 2023........................................................................................... 2
Table 3: Cumulative Hiring Requirements Forecasts, by Broad Occupational Categories
Baseline Scenario 2015, 2018, 2023........................................................................... 3
Table 4: Cumulative Available Talent, 66 Occupations 2015, 2018, 2023.................................. 3
Table 5: Cumulative Available Talent, by Broad Occupational Categories to 2023..................... 4
Table 6: The Talent Gap and Challenge, Baseline Scenario 2015, 2018, 2023.......................... 4
Table 7: T
he Gap and Challenge, by Broad Occupational Categories
Baseline Scenario to 2023........................................................................................... 5
Table 8: Average Private-Sector Forecasts.................................................................................... 13
Table 9: Cumulative Hiring Requirements Forecasts, by Scenario to 2023................................ 31
Table 10: Cumulative Hiring Requirements Forecasts, by Scenario 2015, 2018, 2023................ 32
Table 11: Cumulative Hiring Requirements Forecasts, by Industry Subsector
Baseline Scenario to 2023........................................................................................... 33
Table 12: H
iring Requirements Forecasts, by Broad Occupational Categories
Baseline Scenario to 2023........................................................................................... 36
Table 13: Cumulative Available Talent, all Sectors and Mining
66 Occupations 2015, 2018, 2023.............................................................................. 39
Table 14: Cumulative Available Talent, by Broad Occupational Categories
66 Occupations to 2023.............................................................................................. 40
Table 15: Labour Pool Pressures, by Occupation............................................................................ 41
Table 16: Cumulative Occupational Breakdown of Hiring Needs and Available Talent to 2023..... 43
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A MiHR Report
Executive Summary
The mining industry is a pillar of the Canadian economy yet its future is threatened by
considerable labour market challenges. This 2013 national mining labour market outlook
continues to send this urgent message. Over the next 10 years, minings projected hiring
requirements exceed 145,000 workers representing more than half the current workforce
and human resources challenges continue to cast shadows over the industry. The aging
of the Canadian population and the workforce; loss of industry knowledge and experience;
a lack of young people with the right skills to fill vacant positions; and the need to attract and
develop diverse groups (women, immigrants and Aboriginal peoples) will present the mining
sector with critical challenges in meeting future needs.
Skills and labour shortages are top-of-mind issues for mining employers. A deep
understanding of current labour market trends, valid projections of future needs, and
a clear picture of the potential sources of labour to meet these needs, all provide a
necessary foundation for proactive, coordinated and cooperative industry strategies to
address the looming labour market issues. Building this foundation will ensure that job
seekers find the opportunities and have the right skills to meet industry hiring needs.
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
2018
2023
Contractionary
19,770
46,560
116,850
Baseline
34,500
69,800
145,870
Expansionary
52,240
102,100
199,150
Hiring requirements under a baseline scenario were further broken down by industry sector, revealing different levels of
need. While worker-intensive segments of the industry are projected to need large numbers of workers (e.g., mining and
quarrying, and mineral processing), other segments of the sector that employ large numbers of knowledge workers
and professionals (e.g., exploration and support services) will need to replace larger portions of the current workforce,
with long education and training lags to meet demands.
Table 2: C
umulative Hiring Requirements Forecasts, by Industry Sector
Baseline Scenario to 2023
Replacement Requirements
Employment
in 2013
Net Change in
Employment
Retirement
Non-Retirement
Cumulative Hiring
Requirements
Exploration
51,395
-1,935
13,075
10,550
21,690
70,690
10,425
20,965
16,860
48,255
Mineral Processing
72,080
17,136
22,555
18,120
57,810
Support Activities
for Mining
40,650
-1,040
10,595
8,545
18,100
A MiHR Report
Cumulative hiring requirements are also reported by broad occupational category under a baseline scenario. This
breakdown illustrates the hiring needs for each occupation with the greatest need for trades and undesignated
occupations, technical occupations, and professional and physical science occupations.
Table 3: C
umulative Hiring Requirements Forecasts, by Broad Occupational Categories
Baseline Scenario 2015, 2018, 2023
2015
2018
2023
11,125
22,510
47,055
1,920
3,880
8,100
740
1,485
3,110
Support Workers
1,095
2,235
4,665
Technical Occupations
1,725
3,470
7,250
2,190
4,415
9,230
15,705
31,805
66,460
Total
34,500
69,800
145,870
Available Talent
When facing large hiring requirements, it is natural to wonder where the industry will find all the talent it needs.
New this year is MiHRs Model of Available Talent, which projects all new entrants for each of 66 core mining
occupations from three main sources: school leavers, immigrants and others who are generally people
who switch occupations or re-enter the workforce after temporarily leaving it.
Forecasts of new labour market entrants from these entry points are used to estimate the available talent to meet
future hiring requirements over a 10-year period. The annual supply of workers in all industries was calculated across
the 66occupations of interest. The Canadian mining industrys share of this supply was then estimated based on
historic trends of the flow of workers from these occupations into the mining industry.
2015
2018
2023
386,275
768,800
1,397,560
16,440
33,380
63,350
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
The proportion of the available talent entering mining varies, depending on how specific an occupation is to the mining
industry. For example, the mining industry attracts approximately one per cent of human resources and financial
workers, but attracts 12 per cent of available supervisors, coordinators and foremen, and almost 100 per cent of
underground miners.
Total Available
Talent, All
Sectors (number
of workers)
Minings Historic
Proportion of
Available Talent
(per cent)
39,180
586,200
7%
7,200
159,360
5%
2,630
212,550
1%
Support Workers
3,470
277,020
1%
Technical Occupations
4,490
108,520
4%
6,420
53,890
12%
Table 6: The Talent Gap and Challenge, Baseline Scenario 2015, 2018, 2023
The Talent Gap
2015
2018
2023
18,795
37,995
79,410
16,440
33,380
63,350
Gap
-2,355
-4,615
-16,060
386,275
768,800
1,395,015
5%
5%
6%
The Challenge
All Entrants Selected Occupations
Needed Share to Meet Hiring Requirements (%)
Source: Mining Industry Human Resources Council, 2013
A MiHR Report
Three underlying trends emerge in gap analysis. For some occupations (e.g., electricians, truck drivers) there is a
large pool of talent but minings ability to attract new talent falls short of projected needs. In other words, mining
must compete with other sectors to attract talent away from other sectors.
For other occupations (e.g., underground miners, supervisors in mining and quarrying) there will not be enough workers
in the projected talent pool to meet the industrys needs. To fill these gaps, the mining industry must coordinate efforts
with education and training, immigration services and even other sectors, to attract new talent and grow the labour pool.
The third trend revealed conditions where there will be just enough available talent to meet the industrys projected
needs for some occupations (e.g., geoscientists). However, this does not mean the industry can ignore these occupation
groups. The gap analysis assumes a status quo where the industry retains the current workforce and continues to
engage its traditional share of the talent pool. Achieving the status quo will become increasingly challenging, as the
Canadian labour market heats up and other sectors compete for the same talent.
Table 7: T
he Gap and Challenge, by Broad Occupational Categories
Baseline Scenario to 2023
The Need
The Challenge
Cumulative
Hiring
Requirements
Available
Talent
Minings
Share
Gap
Total
Available
Talent
All Sectors
47,055
39,180
-7,875
586,200
7%
8%
8,100
7,200
-900
159,360
5%
5%
3,110
2,630
-480
212,550
1%
1%
Support Workers
4,665
3,470
-1,195
277,020
1%
2%
Technical
7,250
4,490
-2,760
108,520
4%
7%
9,230
6,420
-2,810
53,890
12%
17%
Minings
Share
Minings
Required
Share
The greatest hiring requirements will be in the trades and production occupations. Certification and recognition
of this essential group in the mining workforce is imperative to attract new workers to fill needs and to retain
current workers to ensure the needs are not compounded with unforeseen losses.
The demographics of the aging workforce, a lack of young people entering the industry, and projected retirement
rates all point to a knowledge and experience crisis. Mentorship and development of younger workers will be
essential to filling the knowledge gap.
The industry faces losses of important talent in leadership positions over the forecast horizon and the leadership
pipeline is thin. Succession planning and leadership development initiatives will be needed to address this gap.
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
Immigration will be a key source of talent for meeting future needs. Attracting immigrants to remote locations
and foreign-credential recognition improvements will both be part of a mosaic of solutions.
Young people are not attracted to mining. To meet future needs, increased efforts in career awareness and youth
outreach are needed.
Women are broadly under-represented in Canadian mining at 16 per cent of the workforce. Mining falls short of
other resource sectors (e.g., oil and gas, 30 per cent; and utilities, 24 per cent) in employing women. Further, women
are employed mainly in administrative and office roles, with very few employed in trades and production roles.
The mining industry is a major employer of Aboriginal peoples but they are mainly found in entry-level and support
roles. Industry and education partnerships to provide advanced education opportunities for local Aboriginal peoples
will help ensure sound socio-economic development and address industry gaps in knowledge worker roles.
Education and training partnerships are important, particularly given the demonstrated gaps and the projected
needs for highly skilled and highly educated workers; however, initiatives take time to implement and strategy
development requires immediate action.
Summary
The Canadian labour market as a whole faces significant challenges over the next 20 years. This is primarily due to an
aging and shrinking population and the pending retirement wave of Canadas baby boomers. These demographics will
put significant pressures on the Canadian economy and living standards over the next few decades.
The labour market conditions in the mining industry are particularly dire. Unique industry-specific characteristics layered
on top of Canadian labour market trends extensively compound the issues. The mining workforce is older and retirement
ages are younger than in the rest of Canadas labour force. In fact, current and looming retirements create the bulk of
projected hiring requirements for the industry over the next 10 years. There is also little inflow of younger workers to
offset the exits of older workers. On top of this, key labour market groups, such as immigrants and women, are severely
under-represented in the mining workforce with participation rates at a fraction of those observed in other sectors.
The labour market indicators point to a crisis; the industry needs people but this is only part of the story. The industry
must address the burning question that immediately follows where are these future workers going to come from?
Immigrants and Aboriginal peoples are essential to addressing minings HR needs, but challenges exist with both of
these talent groups. On one hand, participation rates of immigrants are considerably lower than for the rest of the labour
market. Employment in mining is highly sensitive to economic uncertainty, and diverse populations particularly
immigrants, women and youth are easily deterred from pursuing career options in the sector. On the other hand, the
mining industry is the single-largest employer of Aboriginal peoples, with participation rates that well outperform the
rest of the Canadian labour market. Aboriginal people represent the greatest potential as a source of future labour supply
for the industry.
Solutions to the pending crisis will require coordinated and cooperative efforts among all stakeholders. The responsibility to
address hiring requirements and talent gaps does not rest with industry employers alone, but also with industry associations,
community stakeholders, education and training institutions, and governments. Ensuring that all stakeholders work together
to attract and retain talent is critical not only to the mining industry, but to the Canadian economy as a whole.
A MiHR Report
No matter what happens in the economy, skills and labour shortages will remain a significant
challenge for the Canadian mining industry over the next decade. The 2013 forecasts
presented in this report predict a hiring requirement of more than 145,000 workers by 2023,
under a conservative baseline scenario a number that represents nearly two-thirds of the
current workforce. This outlook report also provides a forecast of available talent, as well as
analysis of the gaps in meeting the forecast needs for each occupation. Projections indicate
that for core mining occupations, the industry will attract slightly more than 63,000 workers
over the next 10 years, to meet a requirement of almost 80,000.
The Mining Industry Human Resources Councils (MiHRs) 2013 labour market forecasts show
critical shortages in many mining occupations through to 2023. Without a proactive mitigation
strategy, underground production and development occupations, and key supervisory and
management positions will face gaps between their forecasted needs and the available talent
pool. Even for occupations where the pools of available talent will be comfortably sized as
is the case with many professional sciences occupations the industry will not meet its
needs unless it attracts more people away from careers in other sectors.
Efforts to retain and develop the current workforce remain essential. Skills and labour
shortages are not unique to mining and pose challenges for the Canadian labour market
as a whole. In the decade ahead, competition will be fierce for talent with particular skills
and experience, as all industry sectors strive to address labour shortages. This competition
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
will impact worker mobility across sectors. Workers may opt to leave mining to find employment in other sectors for
perceived higher wages, better conditions, less remote living or shorter commutes causing a significant loss of
valuable industry knowledge and experience. The projected skills gaps and labour shortages presented in this report
could be worsened by any systematic erosion of the current workforce.
Over the next decade, coordinated strategies among government, industry and education will be essential in meeting
the industrys needs. Many young Canadians entering the labour market do not have the needed skills to fill the
available jobs and struggle to find work after leaving education programs. At present, the mining industry cooperates
and collaborates with universities and colleges to ensure appropriate education and training; however, the numbers
of graduates with the requisite skill sets continue to be below the industrys projected hiring requirements.
A MiHR Report
survey of Canadian exploration and mining employers. This survey is conducted regularly and provides information
on current employment and the demographics of the workforce; future intentions for expansion and development;
and the HR challenges or issues employers face.
Model outputs are validated and verified, using independent findings from MiHRs survey and extensive industry
consultation. MiHR conducted labour market surveys, interviews, and focus group sessions across Canada in 2012.
This research with over 160 industry employers in eight different regions informed the forecast analysis and validation.
Total employment is predicted for each year of the forecast. Net change in employment from year to year is then
calculated and used as the input for each year, along with replacement requirements, to calculate a hiring requirement.
Retirement Rates
MiHR projections of retirements estimate the probability that an individual will retire, given his or her unique demographic
characteristics. Retirement behaviour depends on many factors that are difficult to measure and predict (e.g., family
circumstances, financial stability, health and wellbeing, societal pressures, career enjoyment and engagement). MiHRs
Model quantifies and approximates retirement based on labour market participation of individuals of different ages and
educational attainment levels.
Other Separations
People leaving the mining labour force for reasons other than retirement are captured as other separations in MiHRs
hiring requirements forecasts. Other separations include long-term leaves, movement to other sectors, emigration and
mortality. Data analysis and research estimate the non-retirement-related separation rate to be approximately two per
cent for the Canadian mining industry. This rate may be higher or lower in various regions across the country, depending
on factors such as labour market mobility and competition from other regional sectors. The national separation rate
represents the total activity for all of Canada.
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
In the second case, the need is large and the talent pool is larger; yet, the number of entrants the industry traditionally
attracts will not meet its needs. In this case, there will be a healthy-sized labour pool, so to address the gaps, the
industry must compete against other sectors and attract more than its traditional share of talent.
The third category of gap involves conditions where the need and the available talent the industry traditionally attracts
are fairly well-balanced. In this case, the industry must strive to retain and make the best use of the workforce it already
engages. However, this does not mean that the industry can ignore these occupations. As the competition for talent
heats up among all industries, mining will have to work harder to hold onto the talent it already attracts and engages.
NS
NB
QC
Other metals
Other non-metallic minerals
Diamond
ON
MB
SK
AB
BC
YK
NWT
Nu
Potash
Copper, nickel, lead and zinc
Source: Mining Industry Human Resources Council, 2013; The Conference Board of Canada, 2012
*Note: in some cases a known commodity for a province is not represented due to data limitations and privacy suppressions (e.g., Alberta, coal; Northwest Territories,
tungsten). Please refer to the Mining Association of Canadas Facts and Figures 2012 for a list of operating mine sites and commodities in each province and territory.
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A MiHR Report
MiHR now provides customized forecasting and analysis for provincial and regional stakeholders in separate reports.
These analyses and reports are produced on demand and respond to the unique context of the region in question.
Provincial and regional partners, along with other stakeholders, commission custom analysis. Models and forecasts are
specified to the unique mix of commodities (see Figure 1), operations, economic and labour market conditions, location,
and human resources (HR) challenges in each region. Gap analysis and discussion then pinpoint the solution strategies
that make sense, given that regions dynamics.
MiHR has recently conducted detailed analysis in Saskatchewan (2011), British Columbia (2012), six local districts in
northern Ontario (2012) and Yukon (2013). These tailored reports discuss the anticipated needs, supply and gaps for
each province and region. While a national strategy is necessary and many umbrella issues exist, these reports highlight
the fact that local interpretation of that national strategy is essential. To learn more about contributing to this important
work, or to discuss your own labour market research needs, please email research@mihr.ca or visit www.mihr.ca.
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
11
The Canadian economy was resilient and responsive in 2012, and despite a tenuous global
recovery, Canada experienced sustained growth in the domestic economy. Looking forward,
Canadas economic outlook remains positive, amid continued global economic uncertainty.
Despite a cautious mood among investors and the business community, Canadas economic
growth is expected to be modest in the near term, with moderately increasing demand for
its natural resources and production.
However, the global economic environment remains volatile and uncertain. The ongoing
European crisis and its impact on growing economies, including China, remains a drag
on world economies. In addition, the political disruption in developing nations continues
to create global instability and threatens economic growth.
12
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Private sector firms surveyed for this consensus forecast included Bank of America Merrill Lynch, BMO Capital Markets,
Caisse de Dpt et Placement du Qubec, CIBC World Markets, The Conference Board of Canada, Desjardins, Deutsche
Bank of Canada, Laurentian Bank Securities, National Bank Financial Group, Royal Bank of Canada, Scotiabank, TD Bank
Financial Group, UBS Securities Canada, and the University of Toronto (Policy and Economic Analysis Program).
2012
2013
2014
2015
2016
20122016
2.5
2.1
2.0
2.5
2.5
2.3
2.3
3 month T-Bills
0.9
1.0
1.2
1.8
2.6
3.4
2.0
Unemployment
7.4
7.3
7.2
6.8
6.6
6.5
6.9
CPI
2.9
1.7
2.0
2.0
2.0
2.0
1.9
1.7
2.2
2.0
2.9
3.1
3.0
2.6
A Actual
*October 2012 forecasts
Source: Mining Industry Human Resources Council, 2013; Finance Canada, 2012
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
13
ium
an
Ur
c
Zin
Sa
nd
an
on
ra
dg
Ce
St
ve
t
en
m
ds
Di
am
on
el
Ni
ck
er
pp
Co
ld
Go
re
no
Iro
al
Co
Po
ta
sh
Sources: Mining Industry Human Resources Council, 2013; Statistics Canada, 2011; Natural Resources Canada, 2011
Commodities
The largest impact of the continued global economic turbulence will be realized in Canadian mining through lower
commodity prices. The slower pace of global economic growth and reduced demand, together with financial market
uncertainties, have been reflected in commodity markets through lower and weaker commodity prices. Since 2011,
prices for base metals and agricultural products have fallen, while natural gas prices continue to remain below
previously anticipated levels. These trends represent a slight correction in prices and not a long-term downward trend.
Prices are expected to recover by 2014 and increase steadily thereafter, as shown in the World Bank forecasts for base
metals (see Figure 3) and for precious metals (see Figure 4).
High demand for Canadas natural resources from major developing countries such as Brazil, Russia, India and China
is expected to continue over the next few decades, as large populations of new middle-class consumers emerge and
try to catch up to western nations. Therefore, the forecast for future commodity prices during the next decade is for a
sustained and steady increase. In the global competition for natural resources, the Canadian mining industry is wellpositioned to exploit these competitive developments and to ensure a fair price premium for Canadas non-renewable
natural resources.
The globalization of international trade and the composition of demand for Canadas mineral resources have caused
a closer correlation between the Minerals and Metals Price Index and GDP in the mineral extraction sector. Figure 5
demonstrates this relationship, which strengthened with the 2009 recovery.
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A MiHR Report
120
7,000
100
80
5,000
4,000
60
3,000
40
6,000
2,000
20
1,000
2022F
2020F
2018F
2016F
2014F
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
0
1990
Source: Mining Industry Human Resources Council, 2013; World Bank, Development Prospects Group, 2012
3,500
1,400
3,000
2,500
1,000
2,000
800
1,500
600
1,000
400
500
200
Source: Mining Industry Human Resources Council, 2013; World Bank, Development Prospects Group, 2012
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
15
2022F
2020F
2018F
2016F
2014F
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
0
1990
1,200
Figure 5: Metals and Minerals Price Index (MMPI) and Mining Gross Domestic Product (GDP)
1,000
10,000
900
9,000
800
8,000
700
7,000
600
6,000
500
5,000
400
4,000
300
3,000
200
2,000
100
1,000
2005
2006
2007
2008
2009
2010
2011
MMPI
Mining GDP
Source: Mining Industry Human Resources Council, 2013; Statistics Canada, 2011; Bank of Canada, 2012
Despite this cyclicality, demand for Canadian metals and minerals is expected to grow in the long term. This is primarily due
to the gradual but stable economic growth momentum in 2012 in the United States, the largest single market for Canadian
metals. Close to 60 per cent of all metals exports and almost 55 per cent of total Canadian mining exports for aluminum,
copper, iron and steel, silver, zinc, nitrogen, potash and potassium compounds go to the U.S. In addition, the relatively
high economic growth rates in China and in the two developing countries of India and Brazil, along with demand for
Canadian exports of nickel, coal, and potash and potassium compounds bode well for additional incremental demand for
Canadian metals and minerals in the near term. Canadian mining sales by industry segment are illustrated in Figure 6.
Source: Mining Industry Human Resources Council, 2013; The Conference Board of Canada, 2012
Controlling for price effects, increases in real mining GDP have expanded at an historical average rate of 2.3 per cent
per year. Over the past 25 years, the mining industry contribution to Canadas GDP has remained relatively stable at
an average of 2 per cent over the entire 19842008 period. Today, mining accounts for 3.5 per cent of Canadas GDP.
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A MiHR Report
In the coming years, the shape and composition of the labour force may be transformed,
as older workers begin to exit the workplace and the skill sets of employees continue
to expand. This section profiles Canadas mining labour force and highlights the key
demographic trends and labour market challenges facing the industry.
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
17
Figure 7: Employment in the Mining Industry and its Prominent Sectors (20002012)
250,000
200,000
150,000
100,000
50,000
0
2000
2001
2002
2003
2004
2005
Exploration
Mineral processing
2006
2007
2008
2009
2010
2011
2012
Mining employment is characteristically volatile. Research by MiHR demonstrates that the industrys employment level
is especially responsive to fluctuations in economic activity. As illustrated in Figure 8, over the last two decades,
employment growth in mining has been strongly correlated with the industrys GDP growth. The connection between
industry employment and economic activity is a key element in MiHRs employment forecasts.
Figure 8: G
ross Domestic Product (GDP) and Employment in Canadas Mining Industry
(19872010)
15
10
5
0
-5
-10
-15
-20
-25
-30
1987
1989
1991
1993
1995
1997
1999
% Chg Emp
Source: Mining Industry Human Resources Council, 2013; Statistics Canada
18
A MiHR Report
2001
2003
% Chg GDP
2005
2007
2009
25%
20%
15%
10%
5%
0%
15 to 24 years
25 to 34 years
35 to 44 years
45 to 54 years
55 to 64 years
Retirement
A relatively older workforce means that retirements are anticipated to increase in mining over the next decade. MiHRs
hiring requirements forecasts commonly show retirements to be the most significant contributor to the industrys
future hiring needs. Mining employers indicated in recent MiHR surveys that roughly 20 per cent of their workforce
was eligible to retire in the next three to five years and 6 per cent of workers were currently eligible to retire.
MiHR projects that the retirement rate in Canadas mining industry will rise from about 2.2 per cent in 2013 to
2.8per cent in 2023 an increase of roughly 27 per cent. Figure 10 illustrates projected retirement rates according
to workers levels of educational attainment. Over the next decade, retirements are expected to accelerate in particular
for employees holding a university degree, an apprenticeship certificate or a college certificate. To the extent that
retirees hold extensive technical training, certain mining occupations will be challenged more than others to find
replacements with the critical level of expertise.
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
19
2013
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
all
er
Ov
dip
N
lom o c
a o erti
r d fica
Se
eg te,
co
re
nd
e
ar
ys
ch
oo
ld
ipl
om
a
Ap
p
tra rent
de ice
ce shi
rti p a
fic n
Co
at d
no lle
es
n- ge
un , C
ive EG
rsi EP
ty , o
ce r o
rti th
fic er
at
Un
e
be ive
low rsi
t
Ba y ce
ch rti
elo fic
r l ate
Un
ev ,
el
ive
ab rs
ov ity
e B de
ac gre
he e
lor at
lev or
el
0.0%
20
A MiHR Report
Figure 11: A
verage Hourly Wages for Selected Job Titles in Mining,
by Commodity Produced ($CAD/Hour)
$40
Fossil fuels
Diamond/Industrial mineral
Metal
$35
$30
$25
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
21
an
ctr
ici
ic
lin
ag
Dr
qu
ye
av
He
Source: Mining Industry Human Resources Council, 2013; CostMine Salary Survey, 2011
Ele
an
ch
Me
pe
lo
ve
e/
Sh
o
or
er
at
op
en
t
ra
rfa
Su
ce
rfa
Su
ipm
tor
ce
r
dr
rill
dd
un
ro
de
rg
Un
ro
de
rg
Un
ille
er
r
ive
dr
ck
Tru
ra
pe
to
en
un
de
qu
ipm
ipm
ll e
qu
Mi
tor
tor
ra
pe
to
en
nd
ou
rg
r
Un
de
Su
rfa
ce
wo
wo
rk
rk
er
er
$20
Educational Attainment
As mining activities become increasingly sophisticated and complex, there is pressure on the mining labour force to
adapt skills to the needs of the industry. At the same time, the mining industry draws from a pool of educated individuals
who may also align their skills with the needs of competing industries. As Figure 12 shows, the educational profile in
mining differs from the overall labour force in a couple of key areas. The mining labour force has a greater proportion
of workers with an apprenticeship or trades certificate. Conversely, the percentage of mining workers with a universitylevel education is lower than in the overall labour force.
Figure 12: Proportion of Mining Labour Force by Highest Level of Educational Attainment
30%
Mining
25%
20%
15%
10%
5%
dip
N
lom o c
a o erti
r d fica
eg te,
re
e
Hi
g
ce h
rti sc
fic ho
at ol
eo g
r e rad
qu ua
iva tio
len n
Ap
t
pr
e
n
ce tic
rti es
Co
fic h
at ip
lle
e o or
ge
,C
r d tra
EG
ipl de
om s
EP
,o
a
ro
ce the
rti r n
fic on
at -u
eo n
Un
r d ive
ive
ipl rsit
om y
rsi
t
a
be y ce
low rti
fi
th cat
Un
e
ive
Ba e or
rsi
ch di
ty
elo plo
ce
r l ma
r
at tifi
ev
or ca
el
ab te,
ov di
e t plo
he m
Ba a o
ch r d
elo eg
r l ree
ev
el
0%
While these patterns are similar to those presented in MiHRs report, Canadian Mining Industry Employment and Hiring
Forecasts, 2010, the current mining labour force includes more university graduates than in previous years. This is
mainly due to MiHRs newly expanded definition of the industry; it now includes mineral exploration activities in which
comparatively more jobs require university-level education rather than any systematic change in educational attainment.
22
A MiHR Report
Keeping up with minings shifting economic activity presents a significant challenge for education and training providers.
As it can take many years to administer new programs and to fully prepare people for the workplace, the education
systems capacity to respond frequently falls behind industrys rapidly changing needs. Figure 13 compares changes
in GDP with graduation rates for mining-related programs of study over the last decade. Naturally occurring economic
shifts have created a coordination problem between industry needs and the numbers of students supplied by different
levels of education programs; these programs arent always nimble enough to meet the needs of a sector with volatile
employment cycles. Moving forward, it will become increasingly important for industry and education to better
coordinate their efforts and to ensure they are closely aligned.
Figure 13: C
hange in Graduation Rates and Gross Domestic Product (GDP) in Canada
15
50
10
40
30
20
10
-5
-10
-10
-15
-20
-20
-30
-25
-40
-30
-50
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
% Chg GDP
Knowledge Workers
In July 2011, MiHR, in partnership with the Canada Mining Innovation Council (CMIC) released a comprehensive study
on knowledge workers in Canadas exploration and mining industry Making the Grade: Human Resources Challenges
and Opportunities for Knowledge Workers in Canadian Mining. This report profiles this segment of the workforce, and
presents labour market information and discussion of the HR challenges and issues the industry will face in engaging
its knowledge workers.
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
23
Knowledge workers are a valuable segment of the industry. They occupy pivotal roles, including leadership positions;
drive innovation; educate the future workforce; lead research and development; and ensure the industrys long-term
competitiveness. However, shifts in demographic trends indicate that many of these employees will leave the workforce
by 2020 and demand for knowledge workers will be high in all sectors. Knowledge workers, who are historically a highly
mobile segment of the workforce, will become increasingly mobile as their portable skills become highly demanded
across a number of industries.
As global skills shortages and skills competition increase, it will be more difficult to recruit and retain many knowledge
workers. As a result, organizations will have to work harder to attract, engage and keep these key people; for many,
this will require them to adapt their talent-management practices and programs to meet the needs of their knowledge
workforce. MiHRs recommended strategies include:
Ensure the concerns of female knowledge workers are understood and addressed.
Nurture collaboration and cooperation among academic institutions, employers, government and industry associations.
Expand work opportunities and experiential learning for secondary and post-secondary students.
Diversity
The future strength of Canadas mining labour force will depend greatly on the participation of diverse groups, such
as Aboriginal peoples, women and immigrants. Compared with other industries, these groups have historically
been under-represented or under-utilized in the mining industry. As Figure 14 indicates, the participation rates of
women (16per cent) and immigrants (12 per cent) in the mining labour force are lower than in the total labour
force and other resource sectors. Aboriginal peoples, however, participate at a higher rate in mining (5 per cent)
than in the rest of the labour force and in other resource sectors.
Mining
50
40
30
20
10
0
Aboriginal peoples
Immigrants
Source: Mining Industry Human Resources Council, 2013; Statistics Canada, 2012
24
A MiHR Report
Women
Figure 15: Aboriginal Communities and Mining and Exploration Agreements in Canada, 2012*
10. Hopes Advance Bay - LI - Makivik Corp.
(on behalf of the Inuit of Nunavik), Nunavik
Landholding Corp. of Aupaluk
11. Renard - IBA - Grand Council of the Crees
(Eeyou Istchee) / Cree Regional Authority,
Cree Nation of Mistissini
12. Nunavik Nickel - IBA - Nunaturlik
Landholding Corp. of Kangiqsujuaq,
Qaqqalik Landholding Corp. of Salluit, the
Northern Village of Puvirnituq, Makivik
Corp.
13. Raglan - IBA - Makivik Corp., Qaqqalik
Landholding Corp. of Salluit, Northern
Village Corp. of Salluit, Nunaturlik
Landholding Corp. of Kangiqsujuaq,
Northern Village Corp. of Kangiqsujuaq
14. Troilus - IBA - Cree Nation of Mistissini
15. Windfall Lake - EA - Grand Council of the
Crees (Eeyou Istchee) / Cree Regional
Authority, Cree FN of Waswanipi
16. Bachelor Lake - PA - Grand Council of the
Crees (Eeyou Istchee) / Cree Regional
Authority, Cree FN of Waswanipi
17. Rose Tantalum-Lithium - O - Cree Nation
of Eastmain, Grand Council of the Crees
(Eeyou Istchee) / Cree Regional Authority
18. Eleonore - CA - Cree Nation of Wemindji,
Grand Council of the Crees (Eeyou
Istchee) / Cree Regional Authority
19. Lac Rocher - MOU - Cree FN of
Waswanipi
20. Montviel Project - O - Grand Council of the
Crees (Eeyou Istchee) / Cree Regional
Authority, Cree FN of Waswanipi
21. Quebec Lithium - MOU - Abitibiwinni FN of
Pikogan, Anishinabe FN of Lac-Simon
LEGEND
Exploration
may be pending)
Producing
Closed or in reclamation
On hold
186
184
182
183
180
170
166
165 163160
169
167
168
171
189
196194
198 193
192
197
195 190
179
162
161
164
157
159
156
158
147 155
148 145
152
151
144
141
139
137
131
181
136 135
13 12
114
129
115
113
112
111
99 96
103 95
108
110 98
109
127
126
101
4 2
3
94
102 97
106
119
120
122
107
128
125
121
123
124 118
117
10
130
138
185
188
177
143
134132
133
187
176
142
150146 140
149
174 191
173
175
172
178
153
154
89
88
105
116
100
104
90
93
91
92
NOVA SCOTIA
86 80
18
65 54 51 46
75
17
74 69 64 61 50
14
73
19
66 59 58
56
24
72
67
20 16
76 71
25
28
82 78
53
15
60
68
26
87 85
49 36
63
21
34
84
40 27
81
62 55
35 31
79
57 52 47
83
77 70
23
22
48 42 37
44
39 32 30
43 41 38 33 29
45
11
ONTARIO
NEW BRUNSWICK
6. Halfmile Mine - O, IBA - Mikmaq FNs of:
Amlamgog (Fort Folly), Esgenoopetitj,
Elsipogtog, Lnui Menikuk (Indian island),
Metepenagiag, Natoaganeg (Eel ground),
Oinpegitjoig (Pabineau), Tjipogtotjg
(Bouctouche), Ugpiganjig
QUEBEC
7. Bloom Lake - IBA - Innu Takuaikan Uashat
Mak Mani-Utenam
8. Isoukustouc - EA - Innu Council of Pessamit
9. Lablache - EA - Innu Council of Pessamit
MANITOBA
86. Monument Bay - MOU - Red Sucker Lake
87. Makwa Nickel - MOU - Sagkeeng
88. Minago - MOU - Misipawistik Cree Nation,
Mosakahiken Cree Nation, Cross Lake FN
SASKATCHEWAN
89. Konuto Lake - SLA - Govt of
Saskatchewan
90. Muskowekwan - MOU - Muskowekwan FN
91. Chacachas - O - Chacahas FN Alliance
92. Ochapowace - O - Ochapowace FN
Alliance
93. Day Star - MOU - Day Star FN Alliance
94. Jasper - SLA - Govt of Saskatchewan
95. Rabbit Lake - SLA - Govt of
Saskatchewan
96. McClean Lake - SLA - Govt of
Saskatchewan
97. Seabee Gold - SLA - Govt of
Saskatchewan
98. Komis - SLA - Govt of Saskatchewan
99. Midwest - SLA - Govt of Saskatchewan
100. Muscowpetung - O - Muscowpetung FN
Alliance
101. Jolu - SLA - Govt of Saskatchewan
102. La Ronge Gold Belt - MOU - Lac La Ronge
Indian Band; SLA - Govt of Saskatchewan
103. Cigar Lake - SLA - Govt of Saskatchewan
104. Southeastern Sask. - MOU - Federation of
Saskatchewan Indian Nations
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
25
Immigrants
The Canadian mining industry continues to under-perform the rest of the labour market in employing immigrants.
According to a 2012 Labour Force Survey summary from Statistics Canada, immigrants account for 12 per cent of
the mining labour force, compared to 21 per cent of the total labour force. However, it is encouraging to note that
immigrants participation in mining did increase from a 2006 level of 9 per cent. Immigrants account for 22 per cent
of the labour force in other resource sectors, for 24 per cent in the oil and gas sector, and for 26 per cent of workers
in the utilities sector.
Figure 16 illustrates the proportion of immigrants employed in each mining subsector. The mineral processing subsector
outperforms other mining sectors in employing immigrants; approximately 16 per cent of employees in mineral processing
are immigrants, compared to approximately 7 per cent in extraction and support services. This trend may reflect the fact
that immigrants tend to settle in larger, urban centres; mineral processing activities are more likely to be located in or
near cities, while extraction activities tend to occur in more remote locations.
Other resources
sectors
Total mining
industry
Mining
(extraction)
Support services
for mining
Mineral
processing
Source: Mining Industry Human Resources Council, 2013; Statistics Canada 2012
Statistics Canada population projections indicate that immigrants will account for an increasing share of labour
force growth in Canada over the next five to 10 years. Consideration of this important group will be essential as the
mining industry develops strategies to address projected skills and labour shortages. Increased reliance on commuter
workforces, political and economic unrest in international mining regions, and improvements in foreign-credential
recognition are some of the factors that will ease international-worker mobility and help ensure continuing steady
increases in immigrant participation in the Canadian mining industry.
26
A MiHR Report
Women in Mining
In 2010, Women in Mining (WIM) Canada, in partnership with MiHR, released findings from a detailed report on womens
participation Ramp-Up: A Study on the Status of Women in Canadas Mining and Exploration Sector. This report
provides bench-marking statistics to measure improvements on the status of women in mining. It also provides
employers with information on the barriers to engagement of female workers, and suggestions on how to increase
their participation. The report reveals discrepancies between what employers perceive as barriers for women in the
workforce and those described by female workers, and provides a foundation for developing targeted initiatives.
According to the 2012 Labour Force Survey summary, women remain under-represented in mining, although their
participation has increased steadily from slightly more than 10 per cent in 1996, to 14 per cent in 2006, and then
to 16per cent in 2012. These numbers are still well below womens current participation in the general labour force,
which is 48 per cent. However, it is worth noting that in 2012, mining outperformed some of the other resource sectors
in employing women. As shown in Figure 17, women represented 7 per cent of the forestry industry workforce
and 14 per cent of the workers in the fishing, hunting and trapping industry. On the other hand, women represented
24 per cent of the labour force in the utilities industry and 30 per cent of the oil and gas workforce.
Forestry
and logging
Fishing, hunting,
and trapping
Utilities
Source: Mining Industry Human Resources Council, 2013; Statistics Canada 2012
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
27
Canadian
labour force
Women are not equally represented across occupations within the mining industry. As shown in Figure 18, women are
more likely to be found in clerical and support roles, or in administration and corporate services. Less than 5 per cent of
trades and production, scientific and management positions are occupied by women, whereas most clerical and support
roles (95 per cent) and corporate services positions (60 per cent) are held by women.
Women
90%
Men
80%
70%
60%
50%
40%
30%
20%
10%
dc
an
Ma
na
ge
m
en
or ad t
po m
ra ini exc
te str ep
se at t
rv ion
ic
Ma es
an
na
dc
or ad gem
po m
ra ini ent
te str
se at
Pr
rv ion
ofe
ice
ss
s
ion
al
an te
Pr
d
ofe
sc chn
ss
ien ica
io
tifi l
an nal
c
dc
or ad
po m
ra ini
te st
Te
se rat
ch
rv ive
nic
ice
al
s
an
ds
kil
led
La
bo
tra
ur,
de
se
s
rv
ice
an
dp
ro
du
cti
on
Cl
er
ica
la
nd
su
pp
or
t
0%
Source: WIM Canada, Ramp-Up: A Study on the Status of Women in Canadas Mining and Exploration Sector, 2010
Summary
This chapter highlighted various labour market trends that affect the availability and quality of labour, including
employment, educational attainment, compensation, age and retirement projections, and diversity. Employment in
mining remains volatile, and it is directly related to GDP. Paired with a rapidly aging workforce and lack of growth
in the Canadian labour force, the sector will face significant challenges in the near future as it strives to find the
right talent to fill vacant positions.
28
A MiHR Report
MiHR forecasts employment and hiring requirements over a 10-year horizon. Forecast
Models account for factors affecting the size and composition of the workforce, and
use a combination of independent economic forecasts, Statistics Canada data and
information collected directly from industry stakeholders. Hiring requirements reported
here have twodistinct components Net Change in Employment and Replacement
Requirements. This chapter presents a high-level overview of MiHRs forecast Models;
details on the hiring requirements Model and the methodology used to develop forecasts
can be found in Appendix A.
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
29
According to MiHRs projections, real GDP in the industry is expected to undergo steady growth, despite expected
corrections to mineral prices. Corresponding growth in employment is expected, overall, in the mining industry to 2023.
Replacement Requirements
Replacement requirements describe the need to replace workers who have left the mining labour force, either
through retirement or for other reasons. MiHR has projected the likely separation behaviour of Canadas mining
labour force in two categories: retirements and non-retirement separations.
Retirements are forecast by first estimating the probability that an individual will retire from the labour force in a given
time period. The decision to retire is largely related to demographic characteristics, most notably the individuals age and
educational background. MiHRs Model of retirement starts with the current age demographics and projects future changes
based on participation rates of individuals with similar ages and educational backgrounds. The retirement rate for Canadas
mining industry is projected to increase over the forecast period from roughly 1.9 per cent to 2.8 per cent overall a
significant increase of roughly 25 per cent. Higher retirement rates are observed in some of the industrys subsectors.
Non-Retirement Separations are meant to capture all other separation behaviour that is not related to retirement.
This includes individuals leaving the mining industry in Canada for another industry sector or the mining industry
in another country, as well as people leaving the labour force due to such factors as death or disability. Through
rigourous background research, MiHR has estimated that the non-retirement separation rate for Canadas mining
industry will reach 2 per cent by the end of the forecast period.
Forecasts of hiring requirements for the Canadian mining industry were produced for three scenarios baseline,
contractionary and expansionary. The baseline scenario uses a consensus forecast for GDP, commodity prices,
productivity and other economic indicators. The expansionary scenario assumes greater-than-expected economic
activity and includes assumptions regarding new development projects coming into production. The contractionary
scenario assumes lower-than-expected economic activity.
Forecasts for the baseline scenario are also presented by industry sector (exploration, mining and quarrying, mineral
processing, and supply services) and for 66 core mining occupations that collectively represent nearly two-thirds of
the industrys total employment.
30
A MiHR Report
Retirement
Non-Retirement
Separation
Cumulative Hiring
Requirements
3,910
62,550
50,410
116,850
Baseline
24,600
67,180
54,100
145,870
Expansionary
47,820
79,010
72,340
199,150
Contractionary
As Figure 19 illustrates, even under a contractionary scenario which includes an assumption of below-trend economic
conditions the mining industry will face significant hiring requirements in the short and long terms. In the near term, the
forecasted range of hiring requirements is similar in all three scenarios but over the longer term as uncertainty increases
the forecasts for the three scenarios diverge.
2013
2014
2015
Contractionary
2016
2017
2018
Baseline
2019
2020
Expansionary
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
31
2021
2022
Figure 20 illustrates the overall hiring requirements for the industry on an annual basis over the forecast period. The
bulk of hiring requirements stem from the need to replace workers retiring or leaving the industry for other reasons.
16,000
Non-Retirement
Retirement
2021
2023
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
-2,000
2013
2014
2015
2016
2017
2018
2019
2020
2022
Table 10 summarizes the cumulative hiring requirements in 2015, 2018 and 2023, under MiHRs contractionary,
baseline and expansionary scenarios. The baseline scenario projects the need to hire 34,500 workers by 2015
due to changes in economic factors, and to increased retirements and other separations from the industry. If economic
conditions are better than those assumed in the baseline scenario, and if planned development projects move into
production, the expansionary scenario would come into play. Under this scenario, the total cumulative hiring
requirements could grow to 52,240 workers by 2015.
Table 10: Cumulative Hiring Requirements Forecasts, by Scenario 2015, 2018, 2023
Cumulative Hiring Requirements
2015
2018
2023
Contractionary
19,770
46,560
116,850
Baseline
34,500
69,800
145,870
Expansionary
52,240
102,100
199,150
32
A MiHR Report
Forecast by Sector
MiHR forecasts can now be reported by industry subsector for mineral exploration, mining and quarrying, support
services for mining, and mineral production activities. As shown in Table 11, under a baseline scenario, cumulative hiring
requirements for each sector represent a significant segment of current employment. Mining and mineral production, which
are labour-intensive phases of the mining cycle, have the greatest hiring requirements; however, the needs are also urgent
in exploration and support services. In these subsectors, the bulk of replacements will be needed in the professional
sciences and engineering roles which are projected to experience larger retirement rates (as noted in Chapter 2).
Table 11: C
umulative Hiring Requirements Forecasts, by Industry Subsector
Baseline Scenario to 2023
Replacement Requirements
Retirement
NonRetirement
Cumulative
Hiring
Requirements
-1,935
13,075
10,550
21,690
70,690
10,425
20,965
16,860
48,255
Mineral Processing
72,080
17,136
22,555
18,120
57,810
40,650
-1,040
10,595
8,545
18,100
Employment
in 2013
Net Change in
Employment
Exploration
51,395
Figure 21 illustrates the overall hiring requirements for the exploration sector on an annual basis over the forecast
period. Most of the hiring requirements in exploration stem from the need to replace workers retiring or leaving the
industry for other reasons. A slight contraction in employment is forecast for this sector a direct result of predicted
commodity price corrections over the short and medium terms, with a return to growth by 2020.
Figure 21: A
nnual Hiring Requirements Forecasts, Exploration
Baseline Scenario 20132023
4,000
Net change in employment
Non-Retirement
Retirement
3,000
2,000
1,000
0
-1,000
-2,000
-3,000
2013
2014
2015
2015
2017
2018
2019
2020
2021
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
33
2022
2023
The overall hiring requirements for the mining (extraction) sector on an annual basis over the forecast period are
illustrated in Figure 22. Most of these requirements stem from the need to replace workers retiring or leaving the
industry for other reasons.
4,500
Non-Retirement
Retirement
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Figure 23 illustrates the overall hiring requirements for the mineral processing sector on an annual basis over the
forecast period. As is the case for exploration and extraction, the bulk of hiring requirements in mineral processing
stems from the need to replace workers retiring or leaving the industry for other reasons. A slight expansion in
employment is forecast for this sector, as a result of improved economic outlook in this subsector with new mine
developments and processing facilities to come online by 2023.
Figure 23: A
nnual Hiring Requirements Forecasts, Mineral Processing
Baseline Scenario 20132023
7,000
Number of workers required
Non-Retirement
Retirement
6,000
5,000
4,000
3,000
2,000
1,000
0
2013
2014
2015
2016
2017
2018
2019
34
A MiHR Report
2020
2021
2022
2023
Figure 24 shows the overall hiring requirements for the mining support services sector on an annual basis over the
forecast period. Again, the bulk of hiring requirements stems from the need to replace workers retiring or leaving
the industry for other reasons. A slight contraction in employment is forecast for this subsector due to predicted
slow-growth conditions in mineral exploration fueled by commodity price corrections over the short and medium terms.
A return to accelerated growth is predicted to occur by 2020.
2,000
Non-Retirement
Retirement
1,500
1,000
500
0
-500
-1,000
-1,500
2013
2014
2015
2015
2017
2018
2019
2020
2021
2022
2023
Forecast By Occupation
The occupational breakdown of the hiring requirements forecasts includes 66 different mining occupations, as defined
by the National Occupation Classification for Statistics (NOC-S) categories. NOC-S codes seek to classify individuals doing
similar kinds of work into the same job categories; however, the NOC-S categories do impose some constraints. As a result,
the occupational forecasts included in this report represent about 60 per cent of the mining industry workforce. More
discussion on the occupation codes and categories used in MiHRs forecasts can be found in Appendix C.
Table 12 presents forecasts of cumulative hiring requirements for the baseline scenario by broad occupational category.
The 10 occupations with the greatest forecasted hiring requirements are:
Truck drivers
35
Table 12: H
iring Requirements Forecasts, by Broad Occupational Categories
Baseline Scenario to 2023
2015
2018
2023
11,125
22,510
47,055
1,920
3,880
8,100
740
1,485
3,110
Support Workers
1,095
2,235
4,665
Technical Occupations
1,725
3,470
7,250
2,190
4,415
9,230
15,705
31,805
66,460
Total
34,500
69,800
145,870
A listing of the cumulative hiring requirements forecasted for each of the 66 occupations over a 10-year horizon can be
found in Chapter 6, Table 16.
The greatest hiring requirements will be in the trades and production occupations. This category includes
occupations where the industry will need to compete against other sectors for future talent (e.g., truck drivers,
heavy equipment operators), as well as occupations where the new talent entering the labour market over the
next 10 years will not be enough to meet hiring needs (e.g., underground miners, supervisors and foremen).
Certification and recognition of skills of this essential group in the mining workforce is imperative, to allow mining
to attract new workers and retain current workers, so that the gap between demand and supply does not widen.
The demographics of the aging workforce, the lack of young people entering the industry and projected rates of
retirement all point to a knowledge and experience crisis. Many older workers will soon leave the mining workforce
and take with them, their valuable years of industry experience. Strategies that will engage the aging workforce in
mentoring and developing younger workers will be essential, if the knowledge gap is to be narrowed.
The industry faces losses of workers in important leadership positions over the forecast horizon and the leadership
pipeline is thin. The mining sector can explore a number of initiatives to address these loses, including leadership
development and training programs, succession planning, identifying and grooming high-potential employees for
leadership, and incorporating leadership development in early career stages or even in education programs.
36
A MiHR Report
When the local, provincial and national labour market is not able to meet the employment opportunities for a given
sector, companies may turn to international sources for talent. Immigrants will be a key source of talent as mining
seeks to meet hiring needs in the years ahead. Mining is a global industry and many skilled workers come to
Canada to find opportunities. Both efforts to attract immigrants to work in remote communities and streamlining
of processes for foreign-credential recognition will be important elements in a mosaic of solutions.
Fewer young people are entering the Canadian labour market and only a small portion of them are attracted to
the mining industry. To meet future needs, industry players will need to coordinate intensified efforts to raise
awareness of the mining industry, debunk mining myths among young people and remove barriers to youth
participation in the industry.
Women are broadly under-represented in Canadian mining making up just 16 per cent of the workforce. It may
be too lofty a goal to expect womens participation in mining to match the 48 per cent rate of the overall labour
market; however, mining also falls short of other resource sectors (e.g., oil and gas, and utilities) in employing
women. To meet future needs, the industry will need to continue efforts to engage this important segment of
the labour market. In particular, removing barriers and encouraging women into leadership roles will address
both labour shortages and the leadership challenges. Women are also mainly employed in clerical and corporate
services roles, with participation lower than 5 per cent in most trades and production roles.
Aboriginal peoples are the youngest and fastest growing segment of the Canadian labour market. The mining
industry is a major employer of Aboriginal peoples. Corporate social responsibility, community engagement,
environmental stewardship, and community partnerships will continue to be primary objectives for mining
employers; remaining committed to these approaches will have a direct impact on minings ability to attract
and engage this important segment of the labour market. Workplace readiness, essential skills development
and mining-specific education, as offered through MiHRs Mining Essentials training program, could easily be
integrated with corporate Aboriginal affairs departments, engagement initiatives and CSR strategies.
Although mining is a major employer of Aboriginal peoples, the industry still under-utilizes this talent group.
Aboriginal employees are mainly found in entry-level and support roles. Industry and education partnerships
to provide advanced education opportunities for local Aboriginal peoples could ease the pressures in several
key mining science and engineering occupations, while also ensuring sound socio-economic development and
improved education in Aboriginal communities.
Education and training partnerships are important, particularly given the demonstrated talent gaps and the
projected needs for highly skilled and highly educated workers. It can take many years to initiate or change
education and training programs, and then, several more years to graduate a cohort of students to fill vacant
positions. Mining stakeholders need to immediately undertake proactive planning, communication, partnerships
and action to address the projected needs.
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
37
Available Talent
Where is the industry going to find all the workers needed to address the projected
hiring requirements? A seemingly substantial hiring requirement will not necessarily
lead to labour market pressures, if there is also an abundant supply of new talent ready
to offset the need. Conversely, a seemingly small hiring requirement may actually be
overwhelming, if there wont be enough incoming talent to meet the need. In order
to further understand the industrys labour market pressures, MiHR has enhanced its
modelling capabilities to estimate the amount of talent that will be available to offset
the hiring requirements.
38
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As illustrated in Figure 25, not all individuals entering a particular occupation (e.g., steamfitters) will work in mining. For
key mining occupations, MiHR first estimates the number of new entrants that will be available in the labour pool for all
industries (the large red arrow) and then calculates minings share of these entrants (the small grey arrow) based on
historic trends. This calculation represents the projected available talent for the occupations.
Total
labour pool
New e
ntra
nts
Mining
ss
ha
re
of
w
ne
nts
tra
en
66
Occupations
Minings share
Table 13: C
umulative Available Talent, all Sectors and Mining
66 Occupations 2015, 2018, 2023
Cumulative Available Talent
Total entrants for 66 occupations, all industry sectors
Minings share of entrants for 66 occupations
(assuming the historical rate for each occupation per year)
2015
2018
2023
386,275
768,800
1,397,560
16,440
33,380
63,350
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
39
Table 14: C
umulative Available Talent, by Broad Occupational Categories
66 Occupations to 2023
Minings Share of
Available Talent
(number
of workers)
Total Available
Talent, All Sectors
(number of
workers)
Minings Historic
Share of Available
Talent (per cent)
39,180
586,200
7%
7,200
159,360
5%
2,630
212,550
1%
Support Workers
3,470
277,020
1%
Technical Occupations
4,490
108,520
4%
6,420
53,890
12%
A detailed list of the 66 occupations and the associated cumulative share of available talent for each can be found in
Chapter 6, Table 16.
40
A MiHR Report
For some occupations, such as civil engineers, the industry attracts fewer members of the total labour pool and a steady
state is expected for the overall size of the labour pool; this means that supply pressures are weak for this occupation
there will be more of them in the future and mining doesnt traditionally employ a large portion of them. For other
occupations, such as underground production and development miners, the talent pool is shrinking over time and the
mining industry attracts almost all of the workers in this occupation; therefore, the shrinking talent pool will have a
strong negative impact on industry employers.
Mining engineers
Steady
VERY HIGH
HIGH
Other professional
occupations in physical
sciences
Geological engineers
Metallurgical and
materials engineers
Primary production
managers
MEDIUM
SMALL
Chemists
Civil engineers
Chemical engineers
Industrial and manufacturing
engineers
Biologists and related
scientists
Land surveyors
Financial auditors
and accountants
Cooks
Industrial engineers
Construction managers
and estimators
Mechanical engineering
technologists and technicians
Non-Mining-specific
Occupations
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
41
Understanding the gaps between hiring requirements and available talent is important,
as it can inform development of targeted strategies and initiatives to fill the gaps. To this
end, MiHRs gap analysis provides a side-by-side comparison of hiring requirements and
available talent for the selected key occupations that are core to Canadas mining industry.
The nature of talent gaps varies among occupations. In some cases, there is an existing
pool of talent and the industry must strive to attract more new entrants from this pool
into mining careers (i.e., carve out a larger slice of the pie). In other cases, there simply
arent enough people in the talent pool to meet the industrys needs, let alone the demands
from other industries (i.e., there is a need to make the pie bigger). In all cases, the mining
industry must strive to retain the workers it already employs and to make the best possible
use of talent (e.g., through technology innovation, improved productivity, and appropriate
skills and knowledge development).
A talent gap can also have a different impact, depending on the occupation. This is
especially true for jobs that are highly specialized and require years of training and
experience. A seemingly small gap can pose a challenge when there are only a few
people with the specialized skills and experience to perform the role. The occupational
gap analysis presented in this report presents gaps in terms of raw numbers, but this
analysis should be balanced with the awareness that not all the illustrated talent gaps
are mission-critical or high-concern gaps.
42
A MiHR Report
Table 16: Cumulative Occupational Breakdown of Hiring Needs and Available Talent to 2023
The Need
Available Talent
and Gap
The
Challenge
Cumulative
Hiring
Requirements
Available
Talent
Minings
Share
Gap
6,205
4,870
-1,335
32,370
15.0%
5,475
4,410
-1,065
4,880
90.2%
Truck Drivers
5,125
4,360
-765
132,260
3.3%
5,045
3,890
-1,155
29,550
13.2%
3,195
2,640
-555
6,140
42.9%
3,070
2,970
-100
53,030
5.6%
2,800
2,600
-200
18,070
14.4%
2,680
1,950
-730
3,400
57.4%
Industrial Electricians
2,375
1,820
-555
12,080
15.0%
Material Handlers
1,765
1,700
-65
89,240
1.9%
Crane Operators
1,455
1,070
-385
5,330
20.1%
1,435
1,260
-175
83,060
1.5%
1,405
1,120
-285
1,620
68.8%
Total
Available
Talent All
Industries
Minings
Share
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
43
Minings
Required
Share
Table 16: C
umulative Occupational Breakdown of Hiring Needs and Available Talent to 2023
(continued)
The Need
Available Talent
and Gap
The
Challenge
Cumulative
Hiring
Requirements
Available
Talent
Minings
Share
Mine Labourers
1,275
1,160
-115
1,380
84.0%
1,250
1,050
-200
10,570
9.9%
1,195
1,150
-45
1,370
83.6%
520
490
-30
1,480
33.2%
Carpenters
325
330
73,290
0.4%
300
150
-150
4,660
3.2%
Plumbers
160
190
30
22,420
0.8%
47,055
39,180
-7,875
586,200
7%
Total
Total
Available
Talent All
Industries
Gap
Minings
Share
Minings
Required
Share
8%
1,870
2,100
230
9,210
22.9%
Mechanical Engineers
1,580
670
-910
29,220
2.3%
1,140
360
-780
24,700
1.5%
Mining Engineers
845
1,510
665
2,740
55.0%
710
760
50
15,350
5.0%
Chemical Engineers
470
440
-30
8,840
5.0%
360
450
90
1,850
24.1%
Chemists
300
290
-10
16,270
1.8%
265
260
-5
860
30.7%
Geological Engineers
190
120
-70
1,700
6.8%
Civil Engineers
145
170
25
30,200
0.6%
145
50
-95
16,170
0.3%
80
20
-60
2,250
0.8%
8,100
7,200
-900
159,360
5%
1,470
1,330
-140
103,960
1.3%
5%
540
350
-190
31,050
1.1%
500
350
-150
18,470
1.9%
415
400
-15
27,070
1.5%
185
200
15
32,000
0.6%
3,110
2,630
-480
212,550
1%
1,255
920
-335
79,870
1.2%
725
600
-125
9,790
6.1%
Total
Support Workers
44
A MiHR Report
1%
Table 16: C
umulative Occupational Breakdown of Hiring Needs and Available Talent to 2023
(continued)
The Need
Cumulative
Hiring
Requirements
Available Talent
and Gap
Available
Talent
Minings
Share
The
Challenge
Gap
Total
Available
Talent All
Industries
Minings
Share
655
560
-95
1,840
30.5%
Administrative Clerks
645
370
-275
53,970
0.7%
Production Clerks
470
380
-90
12,030
3.1%
465
360
-105
14,240
2.5%
Cooks
190
170
-20
93,460
0.2%
Construction Estimators
130
30
-100
7,480
0.5%
70
40
-30
1,800
2.1%
60
40
-20
2,540
1.5%
4,665
3,470
-1,195
277,020
1%
1,950
1,600
-350
5,430
29.4%
995
870
-125
20,170
4.3%
Total
Minings
Required
Share
2%
Technical Occupations
Geological and Mineral Technologists
and Technicians
Land Surveyors
920
240
-680
5,750
4.2%
835
510
-325
16,570
3.1%
625
40
-585
6,210
0.6%
515
310
-205
6,900
4.4%
415
390
-25
10,300
3.8%
355
50
-305
1,890
2.8%
315
370
55
22,340
1.6%
230
70
-160
5,960
1.1%
95
40
-55
7,000
0.6%
7,250
4,490
-2,760
108,520
4%
3,335
2,960
-375
6,770
43.7%
2,340
1,600
-740
1,790
89.1%
1,885
1,050
-835
2,490
42.3%
Engineering Managers
650
230
-420
9,340
2.5%
Construction Managers
455
160
-295
24,370
0.6%
7%
395
300
-95
7,190
4.2%
170
120
-50
1,940
5.9%
9,230
6,420
-2,810
53,890
12%
Total
Source: Mining Industry Human Resources Council, 2013
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
45
17%
Close examination of Table 16 shows that each of the occupations reveals a distinct talent gap; however, three broad
trends or types of gaps emerge. These trends can be characterized by the following descriptions:
For these occupations, the labour supply is sufficient for the forecasted labour needs, and
strategic efforts should focus on retaining the workforce through engagement, retention
and development initiatives.
For these occupations, there is a healthy labour pool to draw from, but the mining industry
must capture a larger share of the pool through strategic efforts to attract new labour market
participants into careers in mining.
The new talent in these occupations will not meet the industrys projected needs. Strategic
efforts and partnerships with education, government or even other sectors will need to be
undertaken to grow the pool of talent and increase the number of new entrants overall.
35,000
2,500
Need
Minings share
32,210
15,350
9,210
2,740
2,000
1,850
1,500
1,000
500
46
A MiHR Report
tm Fina
en nc
t a ial
na an
lys d
ts
es
inv
ac
tu
uf
m
an
m Me
at ta
er llu
ial rg
s e ic
ng al a
ine nd
er
s
In
rin dus
g e tri
ng al a
ine nd
er
s
er
s
ine
ng
ge
nin
Mi
Ge
olo
gis
an ts,
d g ge
eo och
ph em
ys is
ici ts
sts
Occupational Analysis
Focused efforts in retention and development will be required for occupations in the geosciences and engineering.
Based on historical trends, the mining industry hires about 20 per cent of the available geologists, geochemists and
geophysics talent. The cumulative hiring requirement for these professional geoscience occupations is 1,950 by 2023.
The mining industry will have access to just over 2,000 individuals from this group indicating a healthy labour pool.
Similarly, the mining industry will have access to sufficient numbers of geological technologists and technicians; mining,
metallurgical and materials engineers; and members of other professional and physical sciences. Although future
supplies of these occupational categories will be sufficient to meet the industrys needs, the retention and development
of these workers is imperative, as recruitment for these positions has proven to be challenging for mining. In addition,
as competition for this talent heats up among industries, worker options elsewhere and mobility will increase.
It is important to highlight here, that the projected 10-year trend is based on current or status quo assumptions
about industry education labour market flows, economic conditions, and baseline scenarios. MiHR recommends
caution and further analysis in interpreting these trends for specific education and training programs, or HR initiatives
for each occupation. With new and developing mining activities world-wide, the baseline assumptions that create
these projections may change, causing a change in the projected gaps. For example, the need for mining engineers
in Canada, illustrated above appears to project a slight surplus over the next 10 years, under a baseline scenario.
However, this assumes historic trends in graduation rates and uptake into employment. MiHR has not yet completed
important research into scenario analysis for each occupation and establishing boundaries on the projected gaps. This
work is part of its ongoing development activities over the next few years.
Knowledge Workers
Professional geoscience and engineering occupations are categorized as knowledge occupations, i.e., occupations
that require significant investment in formal post-secondary education. Individuals working in these occupations often
have both specialized knowledge and experience, and can represent a significant portion of mining organizations
overall capacity. These workers are particularly costly to replace and are highly mobile indicating that Canadian
mining organizations will need to ensure that they remain competitive in the global market for talent. In addition, mining
organizations should actively engage with current knowledge workers to ensure effective organizational capture of
knowledge from transitioning workers, and to encourage knowledge workers in the mentorship of younger workers.
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
47
Mid-Career Attrition
In MiHRs 2010 report, Unearthing Possibilities: Human Resources Challenges and Opportunities in the Canadian
Mineral Exploration Sector, it was found that geoscience careers have a high rate of mid-career attrition, a trend
that is particularly prevalent for women in these fields. Efforts to maintain engagement with geoscience professionals
in the industry, and in particular, the removal of workplace barriers for women, will be significant factors in maintaining
optimal workforce numbers. It is also important for organizations to work to reduce attrition through career development
and retention initiatives, creative work schedules and flexibility with regards to field work.
Occupational Analysis
As shown in Figure 27, occupations such as heavy equipment operators are in high demand from other industries.
The mining industry will require 6,205 of these operators by 2023; however, based on historical trends, the mining
industry will have access to only 4,870 workers resulting in a gap of -1,335 heavy equipment operators. The talent
pool for this occupational group is fairly robust, with over 32,300 new entrants forecast by 2023. This indicates that
the mining industry must actively carve out more of the available talent pool than it has done traditionally, so that it can
meet its labour needs. Other heavy industry sectors, such as construction, petroleum, utilities and forestry also project
high levels of hiring requirements and large talent gaps. Increased efforts by these sectors to attract and retain talent
shared with mining will create more pressure on the labour pool and could widen the gaps illustrated here.
Similarly, a gap of -1,065 construction millwrights and industrial mechanics is anticipated, despite a pool of nearly
30,000 workers. The industry will also need to actively increase its share of the truck driver labour pool, where more
than 132,000 workers will be available but a gap of -765 workers is forecasted.
48
A MiHR Report
29,550
7,000
18,070
Need
Minings share
10,570
12,080
8,920
6,000
5,430
5,000
5,330
4,000
3,000
2,000
1,000
He
av
ye
qu
ipm
(ex ent
Co
ce ope
ns
pt ra
tru
cr tor
an s
cti
e)
ind on
us mi
l
He
tr lw
av
(ex ial m righ
yce ec ts
du
pt ha an
ty
tex nic d
eq
tile s
uip
)
m
en
tm
ec
ha
nic
Ind
s
us
tri
al
ele
tec
ctr
hn G
ici
an
olo eo
s
gis log
ts ica
an l a
d t nd
ec m
hn ine
ici ra
an l
s
Cr
an
eo
St
ea
pe
sp m
ra
rin fitt
tor
kle ers
s
rs ,p
ys ipe
tem fi
t
ins ters
tal an
En
ler d
gin
s
ee
rin
gm
an
ag
er
s
A talent gap for engineering technicians and technologist roles is also projected, requiring the mining industry to
capture more of the available talent pool within these occupations as well. Cumulatively, the mining industry is expected
to face a talent gap of nearly -600 civil engineering technologists and technicians, and -350 geological engineering
technicians and technologists. Similarly, the talent gap for land surveyors is substantial with an anticipated talent
gap of -680workers, despite 5,750 land surveyors in the talent pool.
Traditional corporate roles are also in this talent-gap category. In particular, human resources occupations and finance
occupations will be in demand, and the mining industry will need to capture more of the available talent pool to meet
its hiring requirements.
Career Awareness
For the occupations where mining must increase its share of the available labour pool, focusing strategic efforts on
increasing the awareness of opportunities within the mining industry will be of utmost importance. Many of these
occupations are not mining-specific; therefore, the industry must increase not only awareness among these talent
pools but ultimately, preference for mining career opportunities.
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
49
The mining industry faces legacy challenges with respect to negative social and environmental impacts, and out-dated
perceptions of the nature of mining employment and current corporate responsibility. To fully engage all sources of
labour and to capture more of the talent stream, the industry must work to communicate the realities of the modern
mining industry, and to profile the industrys commitment to social and environmental responsibilities, and the value
it places on diversity and innovation within its workforce.
Currently, the industry faces substantial gaps in attracting and retaining diverse groups to the industry. Of particular
focus are the under-representation of women and immigrants, and the under-utilization of Aboriginal talent. Increasing
meaningful employment and focusing efforts on removing employment barriers for under-represented groups will
benefit the Industry through increased innovation and performance, while ensuring mining has access to all sources
of workforce talent.
Occupational Analysis
As indicated in Figure 28, mine labourers; underground mine service and support workers; central control and process
operators in mineral and metal processing; and machine operators in mineral and metal processing are mining industryspecific occupations with relatively small talent pools from which to draw.
50
A MiHR Report
Figure 28: G
row the Talent Pool
Projected Gaps to 2023
6,000
Available to all industries except mining
Need
Minings share
5,000
4,000
3,000
2,000
1,000
U
an nde
d d rg
ev rou
elo nd
pm pr
en odu
Ma
t m ct
ch
ine ion
ine
rs
an op
d m er
eta ator
l p s, m
ro in
ce e
ss ral
ing
Su
pe
rv
an isors
dq ,m
ua in
Su
rry ing
pe
ing
rv
iso
m rs,
eta m
l p ine
Ce
ro ral
ce a
nt
ra
ss nd
ing
op l co
er ntr
at ol
o
m rs, and
eta m p
l p ine roc
Mi
ro ral es
ne
ce a s
an
ss nd
dp
ing
ro
du
cti
on
wo
Un
rk
er
de
s
rg
r
an oun
ds d
up mi
po ne
rt se
wo rv
rk ice
er
s
Provision of Training
Formal education and training is but one avenue for growing the talent pool. Many employers readily adopt in-house, on-site
training programs for specialized workers, particularly for production occupations, such as production and development miners.
Industry coordination and collaboration with both formal and less- traditional training providers to strengthen capacity for
in-house training or develop pre-employment training will help attract new talent and grow the labour pool.
Ca n a d i a n M i n i n g I n d u s t ry 10 -y e a r H R o u t lo o k
51
Workforce Optimization
The mining industry is inherently sensitive to changes in the commodity price index and employment in mining has a
strong connection with economic conditions. During economic downturns, employment drops and historically, hiring
freezes, downsizing, layoffs and cuts to temporary positions have been prevalent. In contrast, during economic booms,
projects ramp up and mining employers increase hiring campaigns as competition for skilled labour intensifies.
To ensure the industry has the right number of people with the right skills at the right time, mining needs to employ
collaborative approaches to the attraction, recruitment, development and retention of workers.
Workforce optimization is a joint analysis of workforce management, organizational design, technology, equipment,
employee training and development, and business outcomes. Workforce optimization ensures strategic planning and
continuous improvement to support the existing workforce encouraging communication and partnerships among
all stakeholders.
Maintaining engagement from all stakeholders is key to the success of workforce optimization, as it enables use of
strategies that consider developments and changes in the workforce and surrounding educational and economic
environments. For instance, fundamental changes in technology can affect industry workforce needs and educational
partners must adjust their programming to ensure that the future workforce has the specific skills required by mining,
as new technologies are applied within mining work environments. Formal industry and education partnerships are
crucial to the optimization of the mining workforce, and continuous adaptation of these partnerships will ensure they
reflect current and future employment conditions.
In addition, during cyclical downturns, industry, education and government can work together to ensure that talent
streams remain connected to the mining industry setting foundations for meeting future labour needs. Creative
solutions such as flexible working arrangements, education and training incentives, and virtual mentorship can all
be used to ensure the workforce does not completely disengage during the inevitable economic swings. The main
advantage to engaging in workforce optimization analysis and design is to ensure that challenges are identified early
and all stakeholders are coordinated in their efforts to address key issues.
Summary
Demand for mining workers will be widespread, but some occupations will face greater supply pressures than others.
The four occupations with the greatest labour pressures are: production workers, production and development miners,
underground mine service and support workers, and supervisors (mining and quarrying). These occupations are not
easily found in other industries and they are expected to experience large-scale losses. The occupations with the least
labour pressures are: cooks, land surveyors and secretaries (excluding legal and medical). These occupations are widely
found in industries outside of the mining industry and are expected to experience relatively low losses.
In the future, labour market pressures have the potential to derail the progress of the recent economic growth in
Canadas mining industry. To meet minings future needs, more workers from schools and other industries will need
to be attracted into the industry. Mining must also ensure it can encourage more workers to relocate from other
countries and has the ability to train them to meet the industrys demand. In addition, efforts to retain or re-engage
retiring workers will be part of the solutions. A combination of approaches is key to the future sustainability and
success of the Canadian mining industry.
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Appendix A
Hiring Requirements Forecast Methodology
This appendix outlines the methodology used by MiHR to produce forecasts of hiring requirements in the mining
industry. It also describes the various data that were required, along with the development of the forecasting Models.
A flowchart depicting this methodology is provided in Figure A1.
Forecasting Models of employment were estimated based on the following six steps:
Step 1: Collect and analyze data that may potentially explain changes in the number of jobs in each region.
Step 2: Determine the driver(s) that explain the greatest level of variation in the number of jobs in each region
by testing various Model specifications through regression analysis.
Step 3: Produce baseline, contractionary and expansionary forecasts for employment over a 10-year horizon.
Step 4: Produce forecasts of retirement separations based on age profile, level of education and participation rates.
Step 5: Combine forecasts of employment change, retirement and other separations to produce hiring
requirements forecast.
Step 6: Calculate and apply occupational coefficients to produce estimates of hiring requirements by occupation.
Several indicators were considered as explanatory variables for predicting employment. Rigourous modelling showed
that economic indicators predicting change in GDP (e.g., commodity prices, labour productivity, capital stock,
downstream production and sales, etc.), were the best predictors of employment in mining. There is a strong positive
relationship between mining GDP and employment. Expansionary scenarios assume better than predicted, and
contractionary scenarios assume worse than predicted, changes in GDP indicators.
MiHR regularly validates forecasts and collects primary inputs through surveys of industry employers on the size and
age profile of their workforces, diversity and demographic characteristics, occupational profile, expected hiring needs,
and the turnover and separation patterns they observe. Survey findings are used to validate forecasts and augment the
assumptions for the forecast scenarios.
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STEP 2:
Model development
and testing
STEP 3:
Research and obtain forecasts
of employment drivers
Retirement age,
by scenario
Develop forecasts
of employment drivers
for each scenario
Retirement rate,
by year, by scenario
Educational
attainment
STEP 4:
Produce forecasts of
employment, by scenario
Changes in employment,
by year, by scenario
STEP 5:
Hiring requirement,
by scenario
Inputs
Outputs
STEP 6:
Occupational hiring
requirement forecast,
Non-retirement
separation rate
Occupational breakdown
in mining industry
MiHRs hiring requirements forecasting Model combines the effects of various economic indicators (e.g., changes
in commodity prices, productivity, downstream output sales) on employment, retirement rates and non-retirement
separation rates, to produce estimates of hiring requirements.
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Appendix B
MiHRs Model of supply for each occupation starts with the existing supply, adds in new entrants, and then subtracts
people who leave. The Model assumes three main sources of new entrants: school leavers, immigrants and others;
the latter group consists generally of people who switch occupations or re-enter the workforce after temporarily leaving it.
The Model also assumes three paths of departure from the workforce: moving to another country; retiring; and leaving for
other reasons, which include transferring to another occupation, temporarily leaving the workforce, disability or death.
Employment by Occupation
MiHR generates estimates of employment, retirements and other exits by occupation, as part of its hiring requirements
forecasts. Employment outlooks for each occupation in mining were tied to MiHRs employment forecasts. Employment
estimates for each occupation in other industry sectors were tied to The Conference Board of Canadas forecasts for
non-mining sectors.
Employment by occupation is used to help estimate migration patterns in the Model. Employment for each occupation
is divided into two categories: the mining industry and other industries. The census data provides information on
the starting points of these two series. The mining portion of employment is taken from MiHRs mining employment
forecasts, and employment for all other sectors is taken from The Conference Board of Canadas employment forecasts.
These results are then totalled to generate total employment by occupation.
The underlying assumption behind this methodology is that occupational employment in the mining sector will grow
at the same pace as the entire mining industry, and that occupational employment outside of the mining sector will
grow at the same pace as the rest of the economy. This is a reasonable assumption, as it implies that the share each
occupation occupies both within the mining sector and within the rest of the economy will remain constant.
Migration
Net international migration forecasts are based on estimates of net international migration for Canada by occupation,
taken from Human Resources and Skills Development Canadas (HRSDCs) Canadian Occupational Projection System
(COPS) Model.
Net interprovincial migration is based on the balance of supply and demand of workers in a particular occupation. This
assumes that a surplus of workers ( a soft labour market) leads to net outward migration, while a lack of workers (a tight
labour market) leads to a net inflow of workers in a given province. According to modelling done by The Conference Board
of Canada, the unemployment rate in a region is an important determinant of migration flows, and the gap between supply
and demand is a proxy for the unemployment rate for each occupation.
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The forecasts of employment by occupation are used to generate net migration estimates for each occupation.
Interprovincial and international immigration by occupation is known from the 2006 census. To forecast immigration,
the share of immigrants by occupation, relative to total immigration, is kept constant over the forecast period, and
applied to The Conference Board of Canadas provincial forecast for immigration by province. This is done for both
interprovincial and international immigration.
This methodology incorporates the relative mobility of each occupation into the forecast. Occupations where people
have historically been less likely to move will continue to display this characteristic and those with historically higher
levels of mobility will continue to behave in a similar manner. As well, by tying the forecast to The Conference Board of
Canadas existing forecasts for provincial immigration, this methodology incorporates a measure of the attractiveness
of a region. The Conference Board forecasts are dependent on the relative tightness of a regions labour markets and
its historic ability to attract migrants.
School Leavers
The forecast of school leavers is generated using two methods. The first method is based on the occupations historic
ability to attract people leaving school; if a certain share of the population under the age of 25 has historically entered
a particular occupation, it is assumed that the share of entrants will be similar in the future. Thus, the number of new
entrants depends on the age profile of the workforce. School graduation figures and forecasts for specific occupations
are also considered.
Second, to estimate the number of school leavers by occupation, the educational attainment of workers aged 25 to 34 is
used to establish the education profile for each occupation. The 2006 census provides the most recent data on the number
of workers by age group, occupation, and highest certificate, diploma or degree obtained. This information is combined
with demographic data to estimate the number of school leavers per occupation. An estimate of how attractive a particular
occupation is to school leavers is also applied for each occupation. Finally, estimates of how many school leavers will enter
the workforce every year are created. School-leaver estimates are calculated for three broad levels of education: high school
diploma or lower; trade, college or other post-secondary education below the bachelors degree level; and university degree.
Retirements
Retirement leavers are estimated using MiHRs forecasted retirement rates by province, that combine labour force
participation rates by age and level of education, and forecast separations starting with the 2006 Census age profile
of the industry.
Other Entrants
The last group of new entrants is the other category, which largely consists of new people entering from other
occupations or re-entering the workforce. Given the degree of training required for many of these occupations, it is
very likely that these entrants would be already trained in that occupation. For simplicity, the number of new entrants
is assumed to be a certain percentage of the existing labour force. This rate is set equal to the other leavers rate
that MiHR uses as part of its existing Models and is constant across occupations. In this manner, other entrants are
precisely equal to and offset other leavers.
Other Leavers
Other leavers include people moving to other occupations, people temporarily leaving the workforce, and people
dying. The leavers rate is sourced from MiHRs existing Models. The Model then assumes equilibrium in other
labour mobility, thus the Model matches other exits with other entrants.
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Appendix C
This Appendix lists the North American Industry Classification Codes (NAICS) and National Occupational Classification for
Statistics (NOC-S) codes used throughout this report to define the mining industry. MiHR is engaged in ongoing, iterative
research to include more NOC-S codes in this definition of the sector and to better capture Statistics Canada data
related to the mining-industry workforce.
NAICS 2121: Coal mining. This industry group comprises establishments primarily engaged in mining bituminous
coal, anthracite and lignite by underground mining, and auger mining, strip mining, culm bank mining and other
surface mining.
NAICS 2122: Metal ore mining. This industry group comprises establishments primarily engaged in mining
metallic minerals (ores). Also included are establishments engaged in ore dressing and beneficiating operations,
whether performed at mills operated in conjunction with the mines served or at mills, such as custom mills,
operated separately.
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NAICS 2131: Support activities for mining and oil and gas extraction. This industry group comprises
establishments primarily engaged in providing support services, on a contract or fee basis, required for the
mining and quarrying of minerals and for the extraction of oil and gas. Establishments engaged in the exploration
for minerals, other than oil or gas, are included. Exploration includes traditional prospecting methods, such as
taking ore samples and making geological observations at prospective sites.
NAICS 3311: Iron and Steel Mills and Ferro-Alloy Manufacturing. This industry group comprises
establishments primarily engaged in smelting iron ore and steel scrap to produce pig iron in molten
or solid form.
NAICS 3313: Alumina and Aluminum Production and Processing. This industry group comprises
establishments primarily engaged in extracting alumina.
NAICS 3314: Non-Ferrous Metal (except Aluminum) Production and Processing. This industry group
comprises establishments primarily engaged in smelting, refining, rolling, drawing, extruding and alloying
non-ferrous metal (except aluminum).
NAICS 2123: Non-metallic mineral mining and quarrying. This industry group comprises establishments
primarily engaged in mining or quarrying non-metallic minerals, except coal. Primary preparation plants, such
as those engaged in crushing, grinding and washing, are included.
NAICS 5413: Architectural, engineering and related services. This industry group comprises establishments
primarily engaged in providing architectural, engineering and related services, such as structure design, drafting,
building inspection, landscape design, surveying and mapping, laboratory and on-site testing, and interior,
industrial, graphic and other specialized design services. Note that only a portion of this NAIC code relates to
Geosciences, Surveying and Mapping, and Assay Laboratories)
Occupation Classification
Listed on the following page are the 66 NOC-S codes that MiHR uses to define the occupations that are essential to the
mining sector. Often an occupation can have multiple titles and it can be difficult to interpret which label is the correct
one. In that instance, Statistics Canada offers a means to map or connect job titles back to the proper NOC-S code. A
resource to map NOC-S codes to job titles is found on the Human Resources and Skills Development Canada website
(specifically the Quick Search box).1
For example, a Quick Search for Haul Truck Driver underground mining shows that this occupation maps directly to
Underground mine service and support workers. The site will also show which job titles are listed for each occupation
category. For example Heavy equipment operators (except crane) include job titles such as: apprentice heavy equipment
operator; heavy-duty equipment operator; heavy equipment operator; operating engineer, heavy equipment; ripper operator
heavy equipment; shovel operator heavy equipment; spreader operator heavy equipment; stacker operator
heavy equipment.
1 See www5.hrsdc.gc.ca/NOC/English/NOC/2011/Welcome.aspx
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NOC Code
Title
A111
Financial managers
A112
A121
Engineering managers
A371
Construction managers
A381
B011
B012
B021
B211
B541
Administrative clerks
B573
Production clerks
B575
B576
C012
Chemists
C013
C015
C021
C031
Civil engineers
C032
Mechanical engineers
C033
C034
Chemical engineers
C041
C042
C043
Mining engineers
C044
Geological engineers
C048
C054
Land surveyors
C111
C112
C121
C131
C132
C133
C134
Construction estimators
C141
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NOC Code
Title
C153
C154
C155
C162
C163
Inspectors in public and environmental health and occupational health and safety
G412
Cooks
H013
H016
H111
Plumbers
H112
H121
Carpenters
H212
Industrial electricians
H326
H411
H412
H611
H621
Crane operators
H622
H711
Truck drivers
H812
Material handlers
H821
H822
I121
I131
I141
I214
Mine workers
J011
J111
J121
J125
J311
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www.mihr.ca
www.mininghrforecasts.ca