The AIG said it had written to Immigration and Border Protection Minister Peter Dutton in recent days, asking for geoscientists to be included in the labour market testing initiative.

The move would mean employers would have to show they had tested the local market prior to bringing in foreign talent.

The test is already required for drillers and geotechnical, mining and petroleum engineers, but not geologists and geophysicists.

"During the mining boom, Australian exploration and mining companies benefitted from an ability to sponsor overseas trained and experienced geoscientists to work in Australia under the temporary work visa program," AIG president Wayne Spilsbury said.

"The need for this now, however, at a time of dramatically reduced opportunities for geoscientists who are Australian citizens and permanent residents, must be questioned.

"The Institute is concerned by the increasing frustrations experienced amongst AIG members when they encounter continued sponsorship of overseas geoscientists under the 457 visa protocols.

"There are rising accounts of foreign geoscientists working in Australia at a time of high under and unemployment for our local geoscientists."

The call comes on the back of downbeat data released by the AIG last month, with its survey showing combined unemployment and underemployment for local geoscientists had hit 35.1%.

Employment in the exploration sector crashed more than 15% in the first six months of the year.

Spilsbury said the AIG had no issue with geoscientists currently working on 457 visas or those that had sought permanent residency after working through the mining boom.

However, he said moving forward the government needed to make sure employers tested the local market first.

"New admissions need to be assessed very carefully against opportunities for geoscientists already in Australia and seeking work," he said.