Workforce Report 2019

WORKFORCE REPORT 2019

3.3 Supporting Indirect Jobs in Other Sectors The UK offshore oil and gas sector continues to be supported by a world-leading and highly skilled supply chain. Estimates show approximately 116,000 jobs across different industries in the UK were supported by demand from the oil and gas sector in 2018. Figure 2 gives a breakdown of supported employment across the largest 15 components of the supply chain, based on the latest figures available.

Figure 2: Supply Chain Employment Impact by Industry (Top 15 by Percentage of Indirect Employees)

Utilities, 1% Construction of Buildings, 1%

Other Manufacturing, 1%

Accommodation & Food Services, 1%

Machinery and Equipment, 2%

Specialised Construction Activities, 2%

Professional Services, 15%

Wholesale, 3%

Rubber, Plastic and Non- Metallic Mineral Products, 4%

Computing & Information Services, 4%

Administrative & Supportive Service Activities, 11%

Finance, 4%

Retail, 5%

Metal Products, 10%

Land Transport, Storage & Post, 6%

Source: Experian

UK oil and gas operations supported more than 22,000 jobs in manufacturing alone in 2018, including the various sub-sectors of metal products, non-metallic mineral products and machinery and equipment. Nearly half of these jobs were in the metal products sector — which includes the production of key equipment for parts, containers, and infrastructure — equivalent to 10 per cent of the largest supply chain areas shown. Professional services and administrative and support services activity accounted for over 25 per cent of total indirect employment. The professional services industry covers a range of services including architectural and engineering activities, scientific research and development and legal services while the latter includes provision of administrative office support and security services. Another important element of the oil and gas supply chain, accounting for 5 per cent of total indirect employment, was the construction sector. While the number of construction jobs as a proportion of total jobs has fallen over time — in 2016 the sector accounted for 10 per cent of supply chain jobs — it still provides a vital role in the sector in the form of specialised construction activities, the construction of buildings and civil engineering.

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