The Hays Oil & Gas Job Index, which charts the number of jobs posted on nine oil and gas job portals across the world, moved from 1.73 to 1.74 in Q3, a slight decrease from the previous quarter. However, 2014 levels remain strong, and the index is up from 1.55 in Q1, and has experienced an uplift from 1.69 year-on-year. The Job Index was established in October 2010 when it was set at 1; all subsequent months have been compared to this benchmark.
“The start to the second half of the year has seen a rebalancing in the Job Index after a surge in hiring earlier in the year and in years past.” said John Faraguna, Global Managing Director of Hays Oil & Gas. “The decrease in the price of oil coupled with shifting political landscapes in key oil and gas areas including the Middle East and Russia are curtailing hiring plans. Conversely, US unconventional activity continues apace, Africa’s economy continues to grow, the reform in Mexico indicates future investment in the oil and gas industry and the shale gas market in the UK is predicted to rise significantly. With such contrasting markets, we expect to see this levelling of the global Job Index to continue through to the end of 2014.”
Trends by region
As well as a global perspective, the Hays Oil & Gas Global Job Index also provides a measure of month-to-month jobs posted by region. The figures from July to September 2014 (Q3) reveal:
The Job Index for Europe has weakened. As predicted, the Scottish referendum put a dampener on hiring activity in the UK bringing the overall Job Index down for the region. Weakened oil prices have also reduce the attractiveness in ageing North Sea assets. Conversely, the development of shale gas in the UK could result in an increase in hiring for experienced engineers through next year.
The staggered but steady job market growth is reflective of strong industry in the US and regulatory uncertainty of projects in Canada. The Mexico Energy Reform is expected to positively impact the employment market with a significant increase in job number and investment over the next three years.
The Job Index has dipped in South America; presidential elections in Brazil coupled with environmental licensing and security issues in Colombia have resulted in a pause in hiring. However, employers are confident in the industry as a result of regulatory changes in Mexico and Argentina.
COMMONWEALTH OF INDEPENDENT STATES (CIS)
Bursts in job vacancies are reflective of government activity: hiring in the region is consistently inconsistent as projects halt and restart in line with the changing political climate. US sanctions and inaccessibility to work permits are forcing employers to put a hold on hiring plans.
Despite strong business activity, hiring has been comparatively sluggish; the fluctuating Job Index in the region is a response to the politically charged landscape and civil unrest.
The job market has rebalanced after the upsurge in Q2: continued optimism in the African oil and gas market indicates the Job Index will increase again into the last quarter of 2014.
The Job Index is in decline compared to the previous quarter but still strong for the year overall. The volume of projects will continue to drive the job market, resulting in a higher Job Index in 2014 than previous years.
The Australian job market has remained stable for the last quarter; we anticipate the early signs of economic growth in the general economy to begin positively impacting the oil and gas industry in the New Year.
About the Hays Oil & Gas Job Index
The Hays Oil & Gas Global Job Index provides a measure of month-to-month jobs posted on the principal online job portals within the global oil and gas industry. The data is compiled by a team of analysts and researchers, and is broken down to reflect regional differences in hiring activity.
To view further detail on the index and the regional results please go to the Hays Oil & Gas website on http://www.hays.com/oil-and-gas/Job-Index/index.htm
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Hays plc (the "Group") is a leading global professional recruiting group. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2014 the Group employed 8,237 staff operating from 237 offices in 33 countries across 20 specialisms. For the year ended 30 June 2014:
– the Group reported net fees of £724.9 million and operating profit (pre-exceptional items) of £140.3 million;
– the Group placed around 57,000 candidates into permanent jobs and around 212,000 people into temporary assignments;
– 24% of Group net fees were generated in Asia Pacific, 42% in Continental Europe & RoW (CERoW) and 34% in the United Kingdom & Ireland;
– the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees;
– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, China, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA