Workforce Report 2018

1. Foreword Welcome toOil &Gas UK’s 2018 Workforce Report . This year’s report builds on the successful Offshore Demographics reports of previous years to include overall employment figures and consideration of some of the key issues relating to employment. For the first time in four years, we estimate a slight upturn in employment in 2018, as the industry continues to improve its competitive position. Total employment is expected to rise by nearly 3,000 jobs across the course of the year to 283,000, up from 280,000 in the previous year. This comes after total employment supported by industry fell by 14 per cent in 2017 - below previous estimates of 302,000 as the downturn continued to be felt by the supply chain. Increased levels of investment were seen in the sector but were slow to filter through.

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On a positive note, the number of workers in the west of Shetland region continues to rise, more than doubling since 2014 thanks to several major developments such as Clair Ridge and Laggan-Tormore.

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The report reinforces the size and importance of the industry, not just in terms of returns to the Treasury, but in the variety of skills and geographic spread of jobs the sector supports. The industry is truly UK-wide, supporting not just jobs recognisable as oil and gas roles, but in many other sectors such as professional services, metal products and specialised construction activities.

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Gender diversity in the offshore population remains below that of onshore and is an important factor in explaining why the industry’s average gender pay gap is higher than the national average.

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Fourteen per cent of those who travelled offshore last year were from outside of the UK – with half of those coming from other EU countries – indicating that workers from outside the UK continue to make up a significant proportion of the total workforce.

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Workforce engagement is key and it is therefore imperative that the industry articulates a shared and compelling vision for its future. The North Sea industry has coalesced around Vision 2035, which sets out the shared aspirations of:

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Extending the productive life of and adding a further generation to the industry

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Doubling the oil and gas supply chain’s turnover from exports

Advancements in technology, a priority area for industry, will inevitably result in changes for the workforce. For example, increased digitalisation may create remote working opportunities. As such, it will be vital for the industry to understand the existing and future workforce and to proactively develop the skills required to harness the opportunities afforded by these new innovations.

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Despite the difficulties of recent years, the industry has demonstrated its resilience and adaptability and continues to offer exciting and challenging roles with real opportunities for personal development, both in the UK and abroad.

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Dr Alix Thom, Workforce Engagement & Skills Manager, Oil & Gas UK

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