Workforce Report 2018

WORKFORCE REPORT 2018

Oil and gas activity supported more than 25,000 jobs in UK manufacturing alone in 2017, including the various sub- sectors of metal products, rubber, plastic, other non-metallic mineral products, and machinery and equipment. Around half of these jobs were within the metal products sector, which includes the manufacture of critical parts for oil and gas infrastructure, containers, drilling and construction facilities. Professional services and administrative and support services account for more than a quarter of indirect employment. The former includes architectural and engineering activities, scientific research and development, and legal services, while administrative and support services include office and security services, as well as employment agencies. 3.4 Regional Employment Whilst direct employment by the oil and gas industry is increasingly concentrated in the north east of Scotland, the sector provides employment across the whole of the UK. Figure 3 considers the total employment provided by the sector (direct, indirect and induced). Scotland benefits from the largest share of employment from the oil and gas sector, with 80 per cent of direct employment and 39 per cent of total jobs provided by the sector. The most recently available regional statistics (2016 data) show supported employment in the north east of Scotland decreasing to 28,300 from over 31,000 in 2014. Total unemployment in the north east of Scotland has risen during the downturn, with statistics for Aberdeen City above Scottish and UK averages. However, in 2017 the number of people employed in Aberdeen City had increased by 8,300, bringing total employment (not just oil and gas) to its second-highest level on record. 11 While these trends cannot be directly correlated to the oil and gas industry, it is acknowledged that the industry represents a significant proportion of the economy in the north east of Scotland. 12

11 The Press and Journal , 23 May 2018 12 In their submission to the Economy, Jobs and Fair Work Committee of the Scottish Government (2017), Aberdeen City and Aberdeenshire Councils stated that ‘Productivity in the North East of Scotland is higher than almost all regions in the UK and this is largely a result of the Oil & Gas industry’; www.parliament.scot/S5_Education/Inquiries/PSE026_Aberdeen_City-Aberdeenshire_Councils.pdf

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