Job Security Issues within the U.S. Mining Industry?

Although reports of a steadily-growing U.S. job market came as an encouragement to many industries this spring, the news in March and April regarding the U.S. mining industry and heavy industry were not so encouraging. The overall job market may be expanding, but within the mining sector, some troubling trends have emerged.

First, Pittsburgh-based company U.S. Steel announced in late March that they would lay off seven hundred workers, citing supply and demand issues. These cuts are only one in a series of closures and layoffs that have led to an estimated four thousand U.S. Steel workers losing their jobs.

Global iron ore prices have dropped by more than 50 percent in the past 18 months, with slower demand in China and huge increases in iron ore output in Australia. Since 2011, iron ore prices have dropped by two-thirds, from nearly $190 per ton to about $57 per ton (Grand Fork Herald).

With statistics like those staying current, it's hard to predict when the situation might turn around.

In addition to these cuts, America has also witnessed a big drop in oil and affiliated mining jobs. According to Business Insider, persistently low oil prices have forced many energy companies to shut down their rigs, leading to more layoffs.

Fortunately, U.S. mining news hasn't been entirely grim. Recent reports indicate that after many years, the declining coal industry has stabilized and may even be on the rise again. Who would have predicted that just a couple of years ago?

No matter which mining sector you call home, remember that we carry a full range of OTR tires for all of your mining equipment needs. Please feel free to contact us for the best deals.

Image credit: Grand Fork Herald

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