Labor Shortage in the Philippine Mining Industry
One of the main problems in the mining industry that many HR professionals struggle with is the shortage of skilled workforce who are capable of keeping up with technological shifts.
The Philippine mining industry is currently facing a pressing challenge—labor shortage of skilled mining workers. With aging mining experts, increased demand for minerals, and fewer younger generations showing interest in the field, recruitment has never been easier.
If you are an HR Manager, you are most likely under pressure to fill important roles quickly and cost-effectively, most especially when you need to catch up on mining industry’s surging workforce demand.
To stay competitive and operational, you must learn to shift from reactive hiring to proactive strategies focused on both attracting and retaining mining talent.
In this blog, we will help you learn everything about the labor shortage in the mining sector and how you can improve your recruitment process with proven strategies and manpower solutions.
Table of Content
- Severe Global Labor Shortage in Mining Industry
- The Current Status of Mining Industry in the Philippines
- Recruitment in Mining: Understanding What Causes Labor Shortage in Philippine Mining Sector
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Proven Strategies to Attract Skilled Mining Workers in the Philippines
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Streamline Your Mining Recruitment and Cut Costs with Kabraso’s Manpower Solutions
Severe Global Labor Shortage in Mining Industry
The mining industry is facing a growing skills shortage, and it’s having a serious impact on meeting production targets and recruitment goals. This challenge is not limited to one country because the labor shortage in mining is now a global issue.
A recent report discussed the growing severity of the mining labor shortage in a global scale. In Australia, the mining sector’s job vacancy rate rose to 5% by 2024—almost double the 2.6% average over the past nine years.
Experts estimate that by 2026, the industry will need around 24,000 new workers, but only 16,000 may be available.
This gap is due to a mix of factors, including fewer students enrolling in mining engineering programs and changing career preferences among younger workers.
As a result, companies around the world are struggling to fill related roles to their operations.
“The mining sector is grappling with a critical skills shortage, driven by declining enrolments in mining engineering and evolving work preferences.” – Marcus Law, Mining Digital
To stay competitive, you can exploring smarter, more flexible ways to recruit and retain top talent in mining.
The Current Status of Mining Industry in the Philippines
The Philippines is one of the world’s most resource-rich countries when it comes to mineral production. Recent data shows that the country is estimated to have about $1 trillion worth of untapped copper, gold, nickel, zinc and silver reserves. However, only 5% of these reserves have been explored, and 3% are covered by mining contracts.
In addition to this, the administration has established new mining initiatives which aims to leverage mineral resources with a clear objective: To create a balance between sustainability, community impact, and economic growth.
“Metal production soared by nearly 32 percent in 2022, with exports reaching PHP 1 trillion contributing 8.5 percent to the Philippines’ total exports.”
Recruitment in Mining: Understanding What Causes Labor Shortage in Philippine Mining Sector
There are several factors contributing to the labor shortage in mining. And as an HR Professional, it’s important to tackle these challenges head-on and make sure you align your recruitment strategies with them to adapt.
2. Decreased Interest Among Youth in Pursuing Mining Careers
Attracting younger generations, particularly Gen Z, to mining careers has been challenging. Many Gen Z individuals prioritize employers that offer professional training, a conducive work environment, and potentially high earnings.
Additionally, environmental concerns and misconceptions about the mining sector have discouraged them from pursuing careers in this field.
4. Technical Skills Gap in Mining
New technology in mining has created a need for workers with skills in data science, analytics, and automation.
However, there is a limited pool of professionals with these skill sets, making recruitment and retention challenging. Hence existing workers will also require retraining to adapt to new technologies and automated systems.
5. Wage and Compensation Challenges
While the sectors of quarrying and mining in the Philippines has seen a significant increase by 52.9% in 2022, it may still be insufficient to attract and retain skilled labor, especially when considering the demands and risks associated with mining jobs.
Your Trusted Mining Industry Manpower Partner
At Kabraso, we offer a full range of deployable mining manpower options that help you to keep your mining operations on time and delay-free.
Proven Strategies to Attract Skilled Mining Workers in the Philippines
To address recruitment challenges and secure a skilled workforce for your mining business, consider aligning your goals with these strategies:
In the mining sector, where jobs often involve challenging conditions, offering competitive employee packages and benefits is essential to attract and retain skilled workers.
This may include hazard pay, health insurance, and bonuses that reflect the nature of the work.
Upskilling prepares mining workers for automation and evolving technologies in modernizing mining operations. This means investing in mining training programs for technical skills and equipment handling will come out as beneficial in nurturing these talents.
Using digital platforms for recruitment like LinkedIn, Jobstreet, and industry-specific recruitment tools helps you connect with a broader talent pool within the mining industry.
Given the high-risk nature of mining, emphasizing strong safety standards and a culture of work-life balance is a major draw for job seekers. It reassures potential mining workers that their well-being and safety are your priority.
Frequent inspections, safety drills, and compliance audits are important to be practiced in mining operations to prevent injuries and even reduce downtime in manufacturing and mining equipment.
Local service providers like Kabraso Multipurpose Cooperative offer tailored manpower solutions that streamline recruitment processes in the mining sector.
With access to a wide pool of skilled mining professionals, Kabraso helps you gain a competitive edge by offering cost-effective services—allowing you to reduce recruitment expenses without compromising on workforce quality.
Streamline Your Mining Recruitment and Cut Costs with Kabraso’s Manpower Solutions
Kabraso Multipurpose Cooperative offers cost-effective and end-to-end manpower solutions to cater your workforce needs in the mining industry.
With a reliable pool of experienced workers and a strong commitment to safety and efficiency, at Kabraso, we support mining operations through the following services:
- Provision of skilled mining manpower
- Safety-trained mining personnel
- Support for exploration, extraction, and processing operations
- Cost-efficient cooperative-based staffing solutions
With our industry-specific manpower services, you can focus more on improving your operations without the pressure of labor shortage and recruitment challenges.
Conclusion
The global mining industry is facing a critical labor shortage, and the Philippines is no exception. With an aging workforce, low youth interest, and a widening technical skills gap, HR professionals must act fast to improve mining recruitment operations.
However, there are practical strategies that can help bridge this labor gap in mining. Conversely, Kabraso Multipurpose Cooperative stands ready to support mining businesses with skilled, safety-trained personnel and cost-efficient recruitment solutions.
By working with a reliable partner like Kabraso, you can overcome labor challenges and position your operations for long-term success.
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