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As gold prices go up and more mining projects receive incentives and approvals, the global mining workforce seems to be going in the opposite direction.
A Canadian Mining Industry Human Resources Council (MiHR) survey from 2024 showed that 70% of people aged between 15 and 30 would not consider a career in mining, with concerns ranging from safety and lack of flexibility to environmental concerns. This is becoming a bigger issue as many mining executives report that the talent shortage is starting to affect production levels, innovation and is delaying projects.
Industry experts now say their biggest concern is not the cost of assets or project development, but rather how there’s a lack of talent in the pipeline to keep the industry alive.
“There’s a very acute shortage of talent in the industry and it’s a function of two factors. One, there are a lot of people retiring. And two, there’s not many people coming into the industry,” Rob McEwen, Chairman of McEwen Inc. said in a recent interview with MINING.COM host Devan Murugan on Top of Mine.
In the US, more than half of the workforce is expected to retire in the next three years.
In Canada, 20% of workers are 55 years old or older, while only 5% are under 25 years old. About 46% of Gen-Z workers plan to quit mining and energy-related jobs in the next two years, according to Deloitte.
The sector is expanding, as interest in working in it shrinks.
This is also related to how mining is perceived by those that don’t have much contact or with the industry. Youth that didn’t grow up in a resource community might still see mining as pickaxes and environmental destruction, while the reality is mines today use high technology and put an effort into being more socially and environmentally responsible.
“You don’t have a new group of people coming in at the same time as metal prices are taking off and everybody wants to build a mine. So there’s intense competition for labor right now,” McEwen said.
Mining education
While there are still many programs and incentives to study mining, many students don’t seem to see it as something they’d like to pursue and build a career in.
MiHR reports that for the past 14 years, there has been a decline in enrollments in Canadian mining related programs, going from 1,400 in 2014 to 800 in 2020. From 2016 to 2020 enrollments continue to decrease 10% annually.
“Our educational system is discouraging people from entering the industry. They view mining as a very environmentally destructive industry and should be shunned. So enrollment in mining schools, anything related to mining and geology fell precipitously in the last 20 years,” McEwen said.
As youth unemployment sits at 12.6% in Canada, a career in mining might become more attractive to the rising generation that wants to beat those statistics.
The sector is expected to grow even more as demand grows for critical minerals, rare earth elements and battery metals to support innovation in many different areas, generating more job opportunities, especially for those who are just starting out and are interested in working in the sector for years to come.
