According to a US Department of Labor report released on Friday, the number of workers available in the US shale oil sector has decreased even further as drilling and development businesses struggle to fill open positions with enough people to reach output goals this year.
According to official data, the jobless rate decreased to 2. 5% in September of last year from 2. 6% in the month prior to the adjustments. According to East Bloomberg, the jobless rate was 7.3% a year ago.
In an effort to contain spiralling expenses, oil corporations are hesitant to drastically raise wages. Because of this, oil field workers are looking for jobs with higher pay in other industries. The renewable energy industry is the most likely contender for admission.
According to industry consultancy Rystad Energy, double-digit yearly wage hikes won’t be available to workers until 2024. Rystad predicted a 2.9% increase in salary this year in May.
The inability to find enough workers to drill new wells and perform hydraulic fracturing on them may present an additional challenge to the US administration of US President Joe Biden in light of its efforts to pump more production following the “OPEC +” decision. The lack of workers in the oil fields is one of the biggest barriers to increasing production. cutbacks in supplies.
133,800 employees were employed in oil and gas-related jobs nationwide over the last month, a decrease of 4.
8% in comparison to this year’s peak level, which was reached in July.
In terms of replacing employment lost due to the pandemic, the mining and well exploration sector, of which oil and gas is a component, ranks last among all economic sectors, with a 7. 7% decline from February 2020.
US shale workforce reduces in September as unemployment decreases
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