Economic Report 2016 - Oil & Gas UK

ECONOMIC REPORT 2016

7.2 Regional Employment

Scotland’s share of the total number of jobs supported by the sector has increased by three percentage points to 38 per cent from when it was last measured in 2013.

Of the 330,400 jobs supported by the sector, 124,500 are based in Scotland accounting for 81 per cent (27,500 jobs) of total direct employment, 41 per cent (62,000 jobs) of indirect employment and 24 per cent (35,000 jobs) of induced employment.

Outside of Scotland, London and the South East of England hold the second largest share of jobs supported at around 10 per cent each.

Figure 44: Employment by Region

Yorkshire and Humber, 6%

East Midlands, 5%

East of England, 5%

Wales, 3% West Midlands, 5%

Greater London, 10%

South West, 6%

North East, 3% Northern Ireland, 2%

South East, 10%

North West, 6%

Scotland, 38%

Source: Experian

Annual employment data by local authority is only available up to 2014, prior to the full impact of the decline in oil price being felt. In 2014, 22,000 direct oil and gas jobs were based in Aberdeen City and Aberdeenshire. Since then, the unemployment rate in Aberdeen City has risen from 4.1 per cent in 2015 to 4.9 per cent in March 2016 and a similar trend is seen in Aberdeenshire where unemployment has increased from 2.7 to 3.2 per cent over the same period. The reduction in employment supported by the oil and gas industry is likely to be a leading contributing factor to this. 7.3 Offshore Workforce In 2015, over 61,000 people travelled offshore for oil and gas exploration and production. While this represents a decline of 5 per cent against 2014, it is a significantly lower rate of decline than across the industry as a whole, confirming that the majority of job losses have come in onshore roles.

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