U.S. oilfield services and equipment sector were adding jobs since March 2021. November halted this trend and jobs sector witnessed job losses after several months of jobs gains.
818 Jobs were Shed
U.S. oilfield services and equipment sector employment took a step back after eight consecutive months of job gain. This is according to a new Energy Workforce & Technology Council analysis of federal data. The council further added that the sector shed more than 800 jobs during last month. This is a decline of 0.1% which is at the back of 1.9% gain for the period of August to October this year. Oilfield services sector’s employment grew at an average of monthly rate of 0.92% during 2021.
Gradual Recovery Halted
Bureau of Labor Statistics cited that oilfield services and equipment sector added more than 55,000 jobs since March. The sector hit a pandemic low of 597,097 in February this year. The organization estimates a peak of more than 109,000 pandemic related job losses. It is further stated that job reductions were highest in April 2020 when job loss number reached more than 57,000. This was the largest one-month job shed number since 2013.
Since April 2020, the sector has shown improvement in terms of employment. The sector is gradually recovering like many other employment sectors in United States. Around 50,000 of the lost jobs are back now. But, the sector is still far behind from 59,043 jobs in March 2020.
Poor Jobs Data in November
Oil prices collapsed in 2020 as the government imposed travel and commerce restrictions. However, the situation turned around after successful vaccine roll out which triggered a rebound in consumption of gasoline and jet fuel prices. Crude oil is trading at 35% higher than the start of 2021. “I don’t think there’s any question activity and employment have climbed back this year alongside higher prices,” Samco Capital Markets’ Jacob Thompson, managing director, told NGI.
U.S. employment data for November was published last week and it turned out to be disappointing. U.S. employers managed to add only 220,00 jobs which is less than half than that of October.
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