Table 7 : Average annual employment in WA mineral sector - New Energy metals Mineral 2016-17 NoI* 2016-17 FTE* Total employed 106,652 84,711 Manganese 0.07% 0.07% Nickel 5.53% 6.88% Rare Earths 0.16% 0.15% Tin, Tantalum and Lithium 1.02% 1.48% Vanadium - Titanium 0.01% 0.01% Total - Energy metal 6.79% 8.61% Source: Department of Mines, Industry Regulation and Safety, WA *(NoI = Number of individuals, and FTE = Full time equivalent) Although direct energy metal employment in WA makes up a small proportion of overall employment the percentage is expected to rise from approximately 8.6% to approximately 11- 13% in the coming years. This percentage may actually be higher depending upon the impact of automation in the traditional resource sector. 7.4 Indirect employment and multipliers
Indirect employment is important when considering the effect differing industries have on wider society and that some industries create more jobs than others. To do this, industry multipliers are often used however it is important to highlight that there are limitations. For instance, multipliers are high level and at best summaries of industries. As well, multipliers assume unlimited supply and stable environments. The Australia Bureau of Statistics discontinued the use of multipliers because of the ongoing debate about how the results were used. The multipliers presented in this report are for information purposes to demonstrate the relative importance of differing parts of the supply chain. According to the Minerals Council of Australia and Deloitte Access Economics the multiplier for indirect employment in the mining sector
is quite low at .677 and .99 respectively. 63 As there are few reference points in Australia for secondary processing of materials like the New Energy metals and rare earths, international comparative analysis of similar projects has been conducted. High-technology industries such as New Energy metals processing and battery production are seen as having particularly large multipliers. Enrico Moretti’s 64 research on US cities suggests that each additional job in high-tech industries demonstrated a multiplier of 4-5 as employees have high salaries and a disproportional local impact. Ian Hathaway Bay Area Council Economist, 65 explains the two reasons behind this multiplier effect are that “High tech workers earn high salaries and therefore have higher levels of disposable income which can be
63 Deloitte Access Economics (2017), Mining and METS: engines of economic growth and prosperity for Australians, Report prepared for the Minerals Council of Australia, https://www2.deloitte.com/content/dam/Deloitte/au/Documents/ Economics/deloitte-au-economics-mining-mets-economic-growth-prosperity-engines-170317.pdf . (Accessed: 01 May 2018) 64 Brokaw, L (2012), The Multiplier Effect of Innovation Jobs, 06 June 2012, MIT Sloan Management Review, https://sloanreview.mit.edu/article/the-multiplier-effect-of-innovation-jobs/ . (Accessed: 01 May 2018) 65 Kawa, Lucas (2013), "Every New High Tech Job Translates To 4.3 More New Hires", Business Insider Australia, 05 Jan - uary 2013, https://www.businessinsider.com.au/high-tech-job-multiplier-2013-1?r=US&IR=T . (Accessed 03 June 2018)
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