Falling oil prices and job losses could be good for recruiters
15 December 2014
Falling oil prices and consequent job losses in the oil & gas sector could lead to a “glut” of highly qualified workers becoming available, which might be good news for recruiters struggling to fill certain roles.
Mon, 15 Dec 2014 | By Sarah Marquet
Falling oil prices and consequent job losses in the oil & gas sector could lead to a “glut” of highly qualified workers becoming available, which might be good news for recruiters struggling to fill certain roles.
A recent report commissioned by industry body Oil and Gas UK, industry skills and safety body OPITO and the Department for Business, Innovation and Skills (BIS), says as many as 35,000 jobs in the sector could be cut over the next five years.
However, the study, ‘Fuelling the next generation', also says as many as 120,000 new jobs could be created in the sector.
Spencer Ogden chief executive David Spencer-Percival told Recruiter the energy sector was facing “a period of major change” and talk of any skills shortages in the industry was about to change.
“With falling oil prices forcing the likes of BP and other super majors to make significant redundancies, we could see a glut of highly qualified talent becoming available. As a result, by the end of next year, there will no longer be a skills shortage in this sector as skilled people are suddenly back on the market in significant numbers. This will eventually start to drive wages back down.”
He said some businesses would suffer heavily but for others that were “bold enough to invest during a sharply declining oil price, it represents a huge and rare opportunity to pick up talent ready for the upturn and emerge the market leaders”.
Steve Guest, managing director of engineering recruitment firm Techconsult UK, told Recruiter his company was seeing a “general reduction” in contract roles in the UK and Norwegian markets due to the price of oil.
He said it was not the case in all sub-sectors though, such as in subsea exploration, process, renewables and biotech.
He went on to say: “This situation seems to occur on a cyclical basis as the price of oil fluctuates in the marketplace but when one area of oil & gas is up then another might be down. It’s not an issue across all of the landscape of oil & gas recruitment.”
NES Global Talent MD Simon Coton told Recruiter that though the drop in oil prices was affecting the industry, there was still a demand for skilled workers.
“So while the industry is being impacted there are still plenty of opportunities on offer. Prices are expected to rise again.”
The Daily Telegraph reported last week [11 December] that energy company Wood Group was about to create 150 jobs in the UK after winning a £477m contract with BP, a deal that would also secure 700 jobs.
According to the Telegraph report, the deal would see group subsidiary Wood Group PSN provide engineering and construction services to six offshore platforms and the Forties Pipeline System at Grangemouth, in the Firth of Forth in Scotland.
A recent report commissioned by industry body Oil and Gas UK, industry skills and safety body OPITO and the Department for Business, Innovation and Skills (BIS), says as many as 35,000 jobs in the sector could be cut over the next five years.
However, the study, ‘Fuelling the next generation', also says as many as 120,000 new jobs could be created in the sector.
Spencer Ogden chief executive David Spencer-Percival told Recruiter the energy sector was facing “a period of major change” and talk of any skills shortages in the industry was about to change.
“With falling oil prices forcing the likes of BP and other super majors to make significant redundancies, we could see a glut of highly qualified talent becoming available. As a result, by the end of next year, there will no longer be a skills shortage in this sector as skilled people are suddenly back on the market in significant numbers. This will eventually start to drive wages back down.”
He said some businesses would suffer heavily but for others that were “bold enough to invest during a sharply declining oil price, it represents a huge and rare opportunity to pick up talent ready for the upturn and emerge the market leaders”.
Steve Guest, managing director of engineering recruitment firm Techconsult UK, told Recruiter his company was seeing a “general reduction” in contract roles in the UK and Norwegian markets due to the price of oil.
He said it was not the case in all sub-sectors though, such as in subsea exploration, process, renewables and biotech.
He went on to say: “This situation seems to occur on a cyclical basis as the price of oil fluctuates in the marketplace but when one area of oil & gas is up then another might be down. It’s not an issue across all of the landscape of oil & gas recruitment.”
NES Global Talent MD Simon Coton told Recruiter that though the drop in oil prices was affecting the industry, there was still a demand for skilled workers.
“So while the industry is being impacted there are still plenty of opportunities on offer. Prices are expected to rise again.”
The Daily Telegraph reported last week [11 December] that energy company Wood Group was about to create 150 jobs in the UK after winning a £477m contract with BP, a deal that would also secure 700 jobs.
According to the Telegraph report, the deal would see group subsidiary Wood Group PSN provide engineering and construction services to six offshore platforms and the Forties Pipeline System at Grangemouth, in the Firth of Forth in Scotland.
