April’s jobs report reveals an increase in oil and gas extraction jobs as well as support activities for mining.
U.S. employment in mining rose by 9,000 jobs in April, according to data released Friday from the Bureau of Labor Statistics (BLS).
As the oil and gas industry continues its way towards a full recovery from the global oil glut, there’s been a steady increase in mining jobs – specifically oil and gas extraction – and support activities for mining for the past few months. Onshore drilling activity has also increased.
Seasonally adjusted figures from the BLS reveal that oil and gas extraction jobs increased by 1,000 and support activities for mining increased by 6,700 jobs in April. This is positive news for the oilfield services sector that hemorrhaged hundreds of thousands of jobs globally during the downturn in which crude oil dropped to less than $30 per barrel.
Since hitting a recent low in October 2016, jobs in mining have increased by 44,000, with three-fourths of those gains in support activities for mining.
Even as Enbridge announces 1,000 layoffs in Houston and Calgary, other companies are starting to come to the realization that they need to start thinking about attracting talent again. It’s an age-old problem in the industry—investors reward companies that shed head count when prices drop, but talented engineers, geophysicists and others don’t just grow on trees. Several studies have recently addressed this issue.
The University of Houston, for instance, released a report in January noting that although many of those who were laid off might return to the industry, they also were not pleased about their treatment during the downturn. “A sizeable percentage of the estimated 230,000 people worldwide who lost industry jobs since 2014 may not want to go back,” a press release announcing the study stated.
The study found that almost two-thirds of those who had found jobs after being laid off were working in other industries, while most remained unemployed. Only 13% had found other jobs within the industry. “Researchers attributed [this] in part to continued industry cutbacks,” the release stated. “But they said other factors are also at play, including workers’ sense that the layoffs were poorly handled.”
The survey was returned by 720 people with a median age of 53, most of whom were male and 73% of whom had college degrees. Additional findings listed in the release included:
71% of respondents who said they are anxious about the industry’s future;
Two-thirds who said they felt their former employer’s discharge procedures were biased and didn’t allow them to share their views; and 55% who said they are considering leaving the industry within the next year.
According to the release, Bob Newhouse, an industry consultant who aided with the study, said the findings suggest that human resources and management practices have significant impact on industry perception, which in turn affects the resiliency of the workforce. And despite early warnings of looming layoffs, different people can be treated differently during the actual event, even within the same company.
Still a good place to work?
Another study by Opito, a skills body based in the U.K., shows that students living in the U.K.’s energy hubs still see the North Sea oil and gas business as a viable career. More than 500 students participated in the “Youth Perception of a Career in the Oil & Gas Industry” report conducted by Opito throughout 2016. Study results will be shared with the industry as well as several U.K. organizations.
Students between the ages of 14 and 21 were queried, and of those 81% are interested in pursuing a career in oil and gas. They cited reasons such as the opportunity for global travel, the ability to use cutting- edge science and technology, and salary. More than three-fourths of the respondents consider there to be longevity in the U.K. Continental Shelf. Those who disagreed with this assessment cited a lack of confidence in long-term resources, competition from basins in other parts of the world and increased sustainability in alternative energy.
The role of technology
The Futurestep division of Korn Ferry, meanwhile, released a study predicting talent acquisition in multiple industries. While the study examined several trends based on interviews with recruiting experts around the world, the main theme seemed to be the “ubiquitous presence of technology in the talent world.”
“It doesn’t matter what industry our clients are in—everything from manufacturing to professional services and retail—every company can now be classified as a technology company,” Futurestep CEO Byrne Mulrooney said in a press release. “This has forever changed the way talent acquisition experts do their jobs and what candidates have come to expect.”
Additional findings of the study included:
“Me Inc.,” indicating that by 2020 as much as 40% of the workforce will be independent contractors;
“The vagabond HQ,” noting that many companies are moving their corporate headquarters closer to sources of specialized and available talent;
Big Data and artificial intelligence (AI), which are automating administrative tasks that previously needed to be done manually;
Longer term metrics, tracking more about an employee’s tenure than just time to hire and cost to hire;
Keeping information safe;
Importance of culture in retaining employees and enhancing business performance;
Use of social media in recruiting; and
Embracing diversity to plug skills gaps.
No value in the workforce?
Another Korn Ferry study indicated that the majority of the CEOs queried in the study find more value in technology than in their employees. The firm conducted in-depth interviews with 800 business leaders at major companies on their views about the future workforce. Among the findings:
63% said in five years technology will be the company’s greatest source of competitive advantage;
67% said technology will create greater value in the future than people will; and
44% said the prevalence of robotics, automation and AI will make people “largely irrelevant” in the future of work.
Meanwhile, another Korn Ferry study indicated that of the 2,000 professionals it surveyed, 73% plan to look for another job in 2017 because their current job isn’t challenging enough. Adapting to the changing workforce and the threats posed by technology might make that job search challenging indeed.
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