Business Outlook 2018

4.5 Employment As reported in Oil & Gas UK’s Economic Report 2017 4 , the number of jobs supported by the oil and gas industry fell from 315,000 in 2016 to 300,000 last year. The 4 per cent decline, however, was the lowest in three years suggesting that companies are beginning to stabilise after tumultuous periods of restructure.

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Figure 15: Snapshot of Contractor Company Employment Trends

Number of Employees, 2018 versus 2017 A survey of Oil & Gas UK members shows that around a third of companies reduced th ir headco nt in 2017, while just over a quarter increased their staff numbers. This is in line with the aggregate industry figures derived using a macro approach. Looking ahead to this year, the outlook is far more positive with 56 per cent of companies expecting their employee numbers to increase in 2018, while only 6 per cent are anticipating further reductions. Given a modest increase in operating expenditure is forecast this year (see section 5.2) and the capital associated with new development projects is expected to be at its highest in five years, more activity is likely to filter through to the service sector. However, some companies are already reporting challenges in recruiting people with the desired skillsets and right competencies. As a long-term solution to this, some companies are refining their trainee and apprentice schemes, with the recognition that these are vital to their sustained growth. Increased by over 10% Decreased by 0 - 10% Increased by 0 - 10% Decreased by over 10%

Number of Employees, 2017 versus 2016

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Remained consistent

Increased by over 10% Decreased by 0 - 10%

Increased by 0 - 10% Decreased by over 10%

Remained consistent

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Source: Oil & Gas UK Supply Chain Survey

Number of Employees, 2018 versus 2017

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8

9

Increased by over 10% Decreased by 0 - 10%

Increased by 0 - 10% Decreased by over 10%

Remained consistent

Source: Oil & Gas UK Supply Chain Survey

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4 Oil & Gas UK’s Economic Report 2017 is available to download at www.oilandgasuk.co.uk/economicreport

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