AUSTRALIA

Resources boom playing a part in widening pay gap

AUSTRALIAN workers employed in the resources sector in regional areas can expect a healthy pay ri...

This article is 12 years old. Images might not display.

According to Hay Group's 2012 annual salary movement index, while many Australians could expect a pay rise over the next year, the notable finding was that those working in the resources sector in regional areas would reap the best financial gains.

The report, released today, also shows that the boom in the west for mining, oil and gas is expanding the pay gap variance with the rest of the market.

Hay Group senior consultant Steven Paola said salary movements over the past 12 months pointed to the increasing gap between those who were employed in the resources sector and those who were not.

"The pay gap between the resources sector and the rest of the market has widened dramatically, mirroring the trends in the patchwork economy which is currently seeing some sectors struggling while others enjoy boom times," he said.

While the resources sector was far outweighing others when it came to providing financial rewards, the financial services sector has remained resilient, with the industry experiencing a 5.7% increase in total annual reward over the past 12 months.

Meanwhile, salaries in the insurance, building materials and retail sectors were 3-10% below the national average, which Paola said created a challenge for the sectors to retain talent and drive productivity.

On a global scale, however, Australia is faring the best.

"The global view is very positive, with Australian salaries sitting higher compared with other advanced economies and also against emerging economies which are experiencing the fastest rate of growth," Paola said.

Factors driving an increase in Australian salaries include the rising cost of living pressures due to the relatively strong Australian dollar, gradual tightening of the employment market and significant growth in the resources sector.

"The ASMI report shows that Australian salaries are one of the highest worldwide across all job levels, however, we have to take into consideration that the cost of living in Australia is much higher than cities in emerging economies," Paola added.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

Future of Energy Report: Nuclear Power in Australia 2024

Energy News Bulletin’s new report examines what the energy and resources industry thinks of the idea of a nuclear-powered Australia.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.