Australia’s mining industry is at a crossroads — caught between an aging workforce, dwindling productivity, and a reliance on a transient labour model that’s failing regional communities.
Whilst the promise of automation is still a work in progress, the depth of experience that once sustained mining operations is at risk and widespread productivity decline is evident.
For years, mining companies have transitioned to the fly-in, fly-out (FIFO) model to meet their workforce needs.
While FIFO may offer flexibility, it’s becoming increasingly clear that this approach is contributing to long-term instability in the industry, particularly in regional communities.
One of the most pressing issues facing the mining industry today is the erosion of workforce experience. The average experience level of workers is now significantly lower, with new employees averaging just five to seven years of experience (and a significant number in the one to three years of experience), compared to the 20 to 30 years that veteran workers once brought to the table.
This gap in expertise is not just a statistic; it’s a tangible challenge for mining operations.
As veteran workers retire, they take decades of operational knowledge and safety experience with them, and the incoming workers are not staying long enough to develop those essential skills.
How the mining industry addresses this generational shift will be critical for maintaining safety, operational efficiency, and overall performance.
According to the 2024 Australian FIFO Insider Barometer, over 30 per cent of FIFO workers plan to leave their employer within a year, while 17 per cent intend to stop working FIFO altogether within the same period. This turnover is costing the industry up to S3.47 billion annually.
While FIFO offers flexibility and the ability to bring in workers from urban centres, it has become a double-edged sword, exacerbating workforce mobility issues and discouraging long-term investment in local communities.
Workforce feedback is that FIFO options are important, but they don’t match each life stage – family and community connection that residential workforces experience is also a consideration. Building the long-term experience base within the mining workforce requires employment models that sustain continuity over the longer term.
One of the challenges has been that long-distance commuting and working away from home can have a considerable impact on workers’ psychological health and wellbeing.
The isolation and time spent away from loved ones can lead to stress, anxiety, and other mental health challenges.
A major study by the WA Mental Health Commission, involving over 3,000 FIFO workers, found that one in three experience high or very high levels of psychological distress. Experience has shown that many employees ultimately have to leave FIFO work to address these impacts, improve family stability, and spend more time at home.
The FIFO model also tends to reduce the demand for local services, which can impact the quality of life for workers and their families in regional areas.
The lack of investment in local infrastructure, such as schools, healthcare facilities, and housing, can contribute to a cycle of instability in these communities. Without stable infrastructure for families, it becomes more difficult to attract and retain skilled residential workers over time.
As digital solutions emerge, leveraging these to minimise some of the perceived downsides of living in regional communities and bridging infrastructure gaps cost-effectively will be critical.
FIFO is here to stay, but for the mining industry to thrive in the long term, it must balance employment options, including sustainable strategies that focus on developing stable, residential workforces where practical.
Core to a residential strategy will be improving infrastructure in regional areas, including leveraging digital tools, so these locations can become more attractive for workers looking to settle long-term. This will require support from multiple levels of government and mining organisations with targeted investments and longer-term strategies.
A shift to multiple workforce options could create a more stable workforce, with workers likely to remain in the industry longer and develop deeper expertise.
The mining industry faces significant challenges, but these can be addressed with thoughtful, strategic changes.
By rethinking workforce models and placing a greater emphasis on sustainable, long-term strategies that invest in local communities and infrastructure, the industry can improve its future. The time has come for the mining industry to invest in its future by investing in the communities that sustain it.
