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When you level up Mining for example, the game will state that you get +1 in Mining proficiency. What does this actually do?

Does it decrease the amount of swings needed to smash rocks?

Or does this just mean that you leveled up 1 level?

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Though it displays as a whole number, under the covers your character's stamina can have decimal values. Levels in applicable skills reduce, by a fractional amount, how much stamina it takes to use the tool. Here are the ones I was able to figure out.

These skills cause you to use 0.1 less stamina per skill level with these tools:

Foraging

  • Axe

Fishing

  • Fishing Rod

Farming

  • Hoe
  • Sowing a seed
  • Watering Can

Mining

  • Pickaxe

These always use 4 stamina:

  • Milk Pail
  • Shears

(Source: I used a decompilation tool to peek at the source code.)

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    I trust in your reverse engineering
    – FoxMcCloud
    Mar 10, 2016 at 14:04
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I'm not sure about anything else, but higher Proficiency decreases the amount of energy usage for tools. I haven't upgrade my base Hoe at all but, without any hard numbers, I can say that I can till more spaces for the same amount of energy than when I started out.

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