Resources sector generating local jobs in Western Downs (QLD)

An estimated $1.3 billion – some 40% of gross regional product (GRP) – was injected into the Western Downs Region in the last financial year through resource sector activity.

This investment produced 6,713 full-time equivalent jobs or 39% of total employment in the Western Downs.

A detailed analysis by the Queensland Resources Council (QRC) of the minerals and energy sector impact on the Queensland economy further revealed that the direct spend of the sector in the Western Downs in 2014-15 amounted to at least $663 million..

This included $578 million in community contributions and purchases of goods and services from local businesses (including contractors) – to the benefit of 650 local businesses.

A further $85 million in wages went to 542 direct full-time employees (not including contractors).

On top of that, spending by the resources sector supported an additional 6,171 jobs and contributed a further $605 million to the regional economy through the sourcing of local businesses in the supply chain and workers spending their wages on locally produced goods and services.

The QRC reported that resource operations in the Western Downs also produced $93 million in royalties out of Queensland’s total royalty revenue of $2.1 billion.

The $1.3 billion injected into the Western Downs represented almost 45% of the resources sector’s total contribution of $2.9 billion to the Darling Downs’ economy.

The sector directly employed 1,122 full-time employees in the Darling Downs region in 2014-15, while a further 14,062 full-time workers were indirectly employed.

When combined, the 15,184 full-time employees comprised 13% of the total Darling Downs work force.

QRC Chief Executive Michael Roche said that despite the slump in commodity prices, it was heartening to see that a region like the Darling Downs could still have a significant portion of its workforce employed either directly or indirectly by the resources sector.

“These results signal the beginning of a new era in the resources sector where we have moved out of a record period of capital expenditure, especially in the gas industry,” Mr Roche said.

“‘While we have now settled back into a more normal phase where operational expenditure dominates, the jobs created, the spending dollars generated and the royalties paid to the Queensland Government are still a pivotal part of our economy.”

Visit Queensland Resources Council for more information about the contribution of resources to Queensland’s economy.

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