Economic Report 2019

ECONOMIC REPORT 2019

3.5 Employment and Productivity

On top of its direct economic contribution, the industry remains a significant source of skilled employment throughout the length and breadth of the country. The level of supported employment is related to levels of investment and expenditure. In 2018, the industry is estimated to have supported around 259,900 jobs with an anticipated increase to around 269,100 in 2019 — based on a forecast range between 253,800 and 284,400 — the first year-on-year increase in employment since 2014. 4 This reflects an anticipated increase in investment levels, following the reductions seen in recent years, and represents a more sustainable environment compared with levels seen between 2012–15.

Figure 6: Employment Supported by the UK Oil and Gas Industry

500,000

450,000

Direct

Indirect

Induced Total

400,000

350,000

300,000

250,000

Industry

200,000

150,000

100,000

50,000

Employment Supported by the Offshore Oil and Gas

0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: Experian The largest proportion of supported employment in 2019 is within the wider industry supply chain (121,000 via indirect employment), with around 30,600 people directly employed, i.e. those who work for companies directly involved in the extraction of oil and gas and associated services. Induced employment, equivalent to around 117,500 jobs, covers those who are supported as a result of the wider economic activity stimulated by oil and gas expenditure. The reduction in total supported employment between 2014–18 was driven by the industry downturn, during which companies implemented various measures to improve efficiency and reduce expenditure and investment to help ensure the economic viability of their operations.

4 OGUK Workforce Report 2019 www.oilandgasuk.co.uk/product/workforce-report/

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