Talk of the mining boom is the focus of many a dinner table discussion, but it is interesting to know how many Australians have actually wrapped their heads around the implications of the country’s number one industry.
Economist and financial commentator Ross Gittins says that only two per cent of the population are actually employed in this area, yet the industry accounts for 10 per cent of national income. While some people may wonder as to why such a relatively small industry could be so profitable Mr Gittins has his own theory on the matter.
“The true test of the worth of an industry is not how many people it employs but how much income it generates,” he wrote in the SMH.
According to Gittins the reason “income trumps employment is that as income is spent it generates jobs”. But a number of people who work within the mines or related fields are taking on high-risk and perhaps short-term contracts, which is why income protection is so important.
By having the security of a lump sum payment at a time when you need it most workers can rest assured that they won’t be left behind when the boom ends or they are temporarily out of work.
