Australia is set to lose 50,000 to 75,000 jobs over the next couple of years as slowing mining investment hinders economic growth, Australia New Zealand Banking (ANZ) warned.
A shift from labor-intensive investment to a production and export-focused operational phase is at hand as Australia's mining boom enters its third phase, Justin Fabo, economist at ANZ said on CNBC's "The Rundown".
This operational phase requires fewer employees and will see job cuts that extend beyond mining to related industries including construction, transport and manufacturing.
"One of the key things is that the underlying amount of jobs generation is still on the soft side so if you're losing 50,000 to 75,000 jobs, that's going to be a headwind to total jobs growth," Fabo said.
While the resources sector only employs around 2 percent of Australia's workforce, related industries constitute another 8 percent.
Australia's labor market is on shaky footing. Data last week showed the unemployment rate rose to a decade-high of 6 percent in June.
In the chart below, ANZ illustrates the strong correlation between resource investment and jobs.