Labor Shortage
Attracting new talent
Many companies across the Western US mining value chain share the same concern: Labor shortage. The numbers are alarming. Based on the information provided by Walter Copan, VP of research and technology transfer at Colorado School of Mines, more than half the current domestic mining workforce will be retired and replaced by 2029 (221,000 workers). A study published by Deloitte earlier in 2023 supports these statements, according to which nearly 50% of skilled engineers are reaching retirement age in the next decade. Figures from the US Bureau of Labor Statistics show that US mining employment has experienced a long-term decline from 2008 until early 2020. However, since then, it has been gradually increasing.
One can only wonder why working in the industry is not popular when the median annual wage for mining and geological engineers was US$97,590 in May 2022, nearly double the national average. Among the Western US states, California is the only one that comes close to matching the mining industry’s average salary, with an annual average wage of US$73,222.
If not the salary, then working conditions may be a contributing factor. Mining occurs in remote areas with limited amenities, which may not appeal to younger generations. Additionally, the pandemic has shifted people’s attitudes toward work-life balance, with a preference for work from home in many cases. A survey published by McKinsey & Company targeting individuals aged between 15 and 30 revealed that 42% of respondents do not find the mining industry attractive and would “definitely not work” in mining. This places mining at the bottom of the rankings, with other sectors like oil and gas, high tech, and healthcare being more appealing to this age group. Another issue the mining industry must tackle is the gender imbalance. According to the latest data from the IEA, updated in November 2022, women represent only 15% of the labor force in the US mining industry.
The industry requires a makeover, and the next generation of miners will likely be very different from its predecessors. Technology is set to lead this transformation. Mining companies can leverage technological disruptions, such as automation and AI, to make the sector more attractive and have access to a broader talent pool: “In industries such as construction and mining, a significant labor shortage has made it difficult to find skilled workers to operate machines. By blending machine learning with the skills of human operators, we can take advantage of where autonomous technology is today while increasing productivity and addressing labor shortages,” commented Vinay Shet, CEO and co-founder of Teleo, which specializes in automizing mining and construction equipment.
The ability to adapt to new technologies and promote inclusivity —especially women—will boost the industry’s competitiveness and attractiveness.
“The shortage of mining engineers in the US demands immediate attention. While the US demands 500 to 1,000 mining engineers annually, we only graduate around 200. In contrast, other countries are producing significantly higher numbers of mining professionals.”
Misael Cabrera, director of the University of Arizona's School of Mining and Mineral Resources
Universities: A hotbed of new miners
Besides decreasing mining employment, enrollment in mining-related fields at universities has also been falling recently. According to Steve Trussell, executive director of the Arizona Mining Association, college and high school students do not consider mining a career option because they do not know enough about it. "One crucial aspect is transforming young people's narrow perspective of mining, who often perceive it as a dirty profession. Instead, we want to showcase the industry's advanced technological aspects," stated Misael Cabrera, director of the University of Arizona's School of Mining and Mineral Resources.
According to Data USA, a comprehensive website and data visualization platform for public US Government data powered by Deloitte and Datawheel, the institutions that awarded the most degrees in mining & mineral engineering are the Missouri University of Science and Technology, the University of Arizona, and the Colorado School of Mines. The latest figures indicate that the total number of degrees awarded in 2021 was 314, representing a decline of 41.09% compared to the peak of 533 degrees awarded in 2016. "The shortage of mining engineers in the US demands immediate attention. While the US needs 500 to 1,000 mining engineers annually, we only graduate around 200," stated Cabrera.
This decline is accompanied by decreased availability of mining and mineral engineering programs at US colleges and universities. According to a report from the Society for Mining, Metallurgy & Exploration (SMNE), in 1982 there were 25 mining and mineral engineering programs at US colleges and universities; this number had declined to 14 by 2014 and has remained unchanged since.
Today's North American mining industry requires that academia and universities not only help transform young people's narrow perspectives of mining but also function as hubs where ideas, technology and talent converge to develop new research and methodologies to apply to real-world mining problems. The University of Arizona School of Mining and Mineral Resources has a long-standing history supporting the industry, dating back to 1885. Today, the School of Mining and Mineral Resources combines existing mining and geological engineering departments, economic geology, public health, and social and environmental science disciplines to facilitate education and research.
The US Government has already taken actions to boost geological and mining education. According to Cabrera, the Mining School Act proposes to allocate US$10 million to support and strengthen mining schools, a breath of oxygen to enhance mining education. However, this is not solely a government problem but an issue that the entire mining value chain should tackle: "Academia, industry, government, and NGOs need to collaborate to solve real-world problems, connecting students with opportunities to help," said Steve Trussell, executive director of the Arizona Mining Association.
Article header image courtesy of University of Arizona, School of Mining and Mineral Resources