Written by Josefa Barbera, Paralegal
It is no surprise that mining remains one of the key pillars of economic stability in both Chile and Australia. In 2022, 55% of Chile’s total exports were linked to the mining industry, and in 2023, it generated approximately 278,000 jobs directly within the sector. However, while the industry contributes nearly 14.6% of the annual GDP and offers salaries 70% higher than the national average, an alarming trend has emerged—young people are turning away from careers in mining.
A closer look at recent studies reveals two interconnected problems: the declining interest of younger generations in the mining sector and a growing manpower deficit. If the industry is to remain competitive and sustainable, it must adapt to these shifting dynamics. This blog will explore the factors driving these trends and potential solutions to address them.
Why don’t younger generations want to work in this industry?
Referring not only to the previously mentioned study but also to various Chilean news outlets like “Bio Bio Chile” and “New Mining and Energy Outlet”, the main reason behind the lack of interest in the mining industry among younger generations lies in how they perceive work and make career decisions based on those views. With globalization has come almost unlimited access to information, providing a broader and more diverse range of professional options compared to 20 years ago.
One of the factors influencing this trend is that Gen Z´s are more aware of social consciousness and mental health than previous generations. This has led to a positive shift toward prioritizing free time, hobbies, and social interactions over job status or salary.
Another key point highlighted in this hiring study—and one that is no surprise to the global workforce—is the growing expectation for hybrid work arrangements. Across all age groups, the ability to telework, whether partially or fully, along with flexible working hours, has become a fundamental requirement.
The pandemic transformed work culture, proving that 100% in-person attendance is not necessary for maintaining a functional and productive workflow.
Why is there a manpower deficit?
According to news outlet New Mining and Energy (NME Spanish acronym), in first instance there is a growing manpower deficit is due to the increase in demand for new projects or the expansion of existing fields.
Quoting the study “Labor Force in Chilean Large-Scale Mining 2023-2032”, conducted by the Mining Skills Council-Eleva Alliance, the main projects driving this growing demand include the start of operations at Quebrada Blanca 2, Salares del Norte, Distrito Minero Centinela, and Los Bronces Integrado.
According to this study, the workforce in the mining industry reached 173,000 workers in 2022, with the majority being local. In fact, 63% of the workforce reported living in the same region where they work.
The issue is further compounded by the aging workforce—by 2032, nearly 80% of new demand will be due to retirements. The study predicts a shortage of nearly 9,000 mechanical maintainers and over 5,000 mobile equipment operators. While these roles offer stability and competitive salaries, they remain unappealing to younger workers who prioritize different work values.
Thus, the workforce shortage is not just a problem of numbers but also a problem of perception. The mining industry is competing for talent in a labor market that has fundamentally changed.
So, what are the next steps?
The industry is not facing an existential crisis, but it does need to evolve. Mining companies must find creative solutions to align with the expectations of younger generations while maintaining productivity. Here are some innovative approaches:
- Revolutionizing Remote Work in Mining
- While fully remote work is not feasible for most mining roles, companies can implement partial hybrid models for administrative, engineering, and technical support positions. Digital twins, automation, and AI-powered monitoring systems can allow certain roles to be performed off-site.
- Rotational work schedules with extended breaks can offer a better work-life balance for on-site workers, making mining jobs more attractive.
- Rebranding the Industry for the Next Generation
- Highlighting advancements in sustainable mining and promoting the industry’s efforts in green technology can shift public perception.
- Outreach programs, internships, and collaborations with universities can educate younger workers on the industry’s benefits beyond salary.
- Leveraging Technology to Modernize Roles
- The integration of robotics, remote-controlled machinery, and AI-driven logistics can reduce the need for physical labor, attracting tech-savvy younger generations.
- Upskilling programs can help transition traditional mining roles into more technology-driven careers within the sector.
- Enhancing Employee Benefits and Well-Being
- Mining companies should emphasize not only high salaries but also benefits such as mental health support, continuous learning opportunities, and flexible career growth paths.
- Investments in smart housing, entertainment, and wellness initiatives in mining towns can improve the overall experience for workers and their families.
Conclusion
On the other hand, younger generations must recognize that while the higher salaries and job stability offered by the mining sector are appealing, they come with the requirement for on-site work.
Rather than viewing the declining participation of younger generations as a crisis, it should be seen as an opportunity for transformation. The industry is not lacking investment or demand—it is lagging in adapting to the expectations of modern workers.
Younger generations, in turn, must recognize that the mining industry offers unique opportunities for career stability, growth, and innovation. If mining companies embrace change, they can attract and retain the talent necessary to sustain one of Chile’s most vital economic sectors for years to come.
Harris Gomez Group METS Lawyers ® opened its doors in 1997 as an Australian legal and commercial firm. In 2001, we expanded our practice to the international market with the establishment of our office in Santiago, Chile. This international expansion meant that as an English speaking law firm we could provide an essential bridge for Australian companies with interests and activities in Latin America, and to provide legal advice in Chile, Peru and the rest of Latin America. In opening this office, HGG became the first Australian law firm with an office in Latin America.
As Legal and Commercial Advisors, we partner with innovative businesses in resources, technology and sustainability by providing strategy, legal and corporate services. Our goal is to see innovative businesses establish and thrive in Latin America and Australia. We are proud members of Austmine and the Australia Latin American Business Council.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. It does not create a solicitor-client relationship, and readers should seek independent legal advice for their specific circumstances. Harris Gomez Group accepts no liability for reliance on this content.