Big concerns for the future of many Australian jobs, with tough times forecast in major industries.

A string of contractors are expected to fail as miners cut costs in response to declining iron ore and coal prices.

From direct services like drilling and environmental checks, to logistics engineering and construction, accounting firm Ernst & Young says the broader mining services industry will have to shrink.

Mining services firm Boart Longyear has shed thousands of staff in recent times, as has BMA, Forge and Allmine.

The analysts say mergers and take-overs in mining services will reduce the jobs pool too.

Ernst & Young economist Vince Smith says lower prices for coal and iron ore, cost-cutting by miners and high company debt levels will force many out of business.

“We think there are further tough times ahead probably for the next few years,” he told the ABC.

“For the work that's now available there are probably too many competing for it.

“The smaller [companies] don’t have strong enough balance sheets, they don't have the ability to withstand too much more pressure from a cost and profitability point of view.

“They only really need one contract to go wrong or bad for them and that can have quite a significant impact on their business,” he said.

Mr Smith said the smart money was moving away from mining into infrastructure, civil engineering, government and utilities work.