Queensland Resources Council's seventh annual economic contribution report details the worth of the resources sector to the Mackay region.
Queensland Resources Council's seventh annual economic contribution report details the worth of the resources sector to the Mackay region. Lee Constable

1832 Mackay jobs lost in three years as downturn bites

THE resources sector still fills the tills in Mackay - an industry funded report showing $7.3billion flowed into the region last financial year.

Queensland Resources Council's seventh annual economic contribution report, released Thursday, found the resources industry paid $1billion in wages to almost 7000 full-time employees in the Mackay region, which includes Mackay, Whitsundays and Isaac.

But those figures also showed the effects of the downturn, with a difference of $3.8b less and 1832 fewer direct jobs in the three years since the 2012/13 report.

This is a drop of 34% of the resources sector's total economic impact on the region and a 21% reduction in direct full-time employment in that time.

The combined direct and flow-on effects of the downturn is more sober reading with 24,000 fewer full-time positions as a result of the sector now compared to the 2012/13 report.

Brisbane was once again the heart of Queensland's resources industry, despite also being down on all of the key indicators from 2012/13.

The report found the total impact of the sector on Brisbane's economy was $27b and it supported 133,070 full-time employees, injecting $20 billion more into Brisbane than the Mackay region despite directly employing 1604 fewer full-time positions in the State's capital.

The resource industry's impact on the Mackay region in the 2015/16 financial year

The resource industry's impact on the Mackay region.
The resource industry's impact on the Mackay region. QRC

 

The sector's contribution to Mackay has fallen since 2011/12, when direct employees numbered 8822, with $2b in salaries and $11b going into the local economy as a result of indirect and flow-on effects.

Despite this the industry, this year, still contributed 38% of gross regional product for Mackay and was either directly or indirectly responsible for employing 49,306 people.

"The $3.7b contribution of wages, goods and services and local taxes stimulates an additional $3.6b in indirect benefits for the region through flow-on expenditure," QRC chief executive Michael Roche said. "These results demonstrate the continued importance of the resources sector to the Mackay economy.."

The 2016-17 results could show an increase in the contribution from the resources sector for the Mackay region, with BHP recently announced it had already spent $11m through the local buying program in the first quarter this financial year compared to $26.5m throughout the entire 2015-16.

The resource industry's impact on Brisbane in the 2015/16 financial year

The resource industry's impact on Brisbane.
The resource industry's impact on Brisbane. QRC


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