Workforce Report 2018

While hundreds of thousands of jobs across the UK are still supported by the sector, the 2018 estimate represents a decline of more than 180,000 compared with the peak in employment of more than 460,000 jobs in 2014. This reflects the fall in capital investment and lower expenditure on operating assets on the UKCS, as well as a drive for greater efficiency in the prevailing business environment. The forecast increase is based on the expectation that total industry expenditure will begin to increase this year. The period of greatest rationalisation appears to be behind us, with companies increasingly focused on sustaining improvements and adding new activity. It is hoped that the new greenfield projects anticipated this year could unlock around £5 billion of new capital investment over time, providing a much-needed boost throughout the supply chain. However, the timing of this investment remains uncertain. Any further delays or deferrals will likely have an impact on industry employment, particularly across the supply chain where every £1 million spent by industry on capital projects typically provides employment for twelve people across the supply chain (indirect jobs) and another eight (induced jobs) within the wider economy. 3.3 Supporting Indirect Jobs in Other Sectors It is important to recognise that the UK offshore oil and gas industry draws on the skills of many other sectors of the UK economy. Figure 2 outlines the breakdown of industries that make up most of the supply chain, based on the latest figures available for 2017.

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

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Construction of Buildings 2%

Utilities 2% Civil Engineering 1%

Machinery and Equipment 4% Other Manufacturing 2%

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Professional Services 20%

Wholesale 4%

Specialised Construction Activities 4%

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Rubber, Plastic and Non- Metallic Mineral Products 4%

Administrative & Supportive Service Activities 16%

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Finance 5%

Computing & Information Services 5%

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Land Transport, Storage & Post 8%

Metal Products 14%

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Retail 9%

Source: Experian

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