The Hays Oil & Gas Global Job Index recovered from the dip experienced in the last quarter of 2012 and has shown two consecutive years of substantial improvement.
The Index, which charts the number of jobs posted on nine oil and gas portals across the world, stood at 1.49 in March 2013, improving upon the 1.23 where it stood in December 2012. The Index was established in October 2010 when it was set at 1, of which all subsequent months have been compared to since. This quarter’s Index has seen the addition of jobs in demand and the average salary of these for each region, adding to the expert commentary provided in the Index.
Chris Mead, Regional Director of Hays in Malaysia and Singapore, comments; “It is encouraging to see the recovery in the Index especially as we have also seen an increase in the average worldwide salary since last year. We can put this down to the ongoing skill shortages in the industry.
“Around the world in the mining and resources sector we have begun to witness a decline in hiring activity as projects are postponed. The economic issues within the EU have also had their knock on effect throughout the world, including China which has contributed to their slowdown and ability to build up their raw materials inventory.
“These signs have led the industry to approach 2013 with caution. I certainly feel these issues that need to have a close eye kept on them, but I remain confident nonetheless about the industry as a whole. I believe that the next few years will see a rise in hiring and for the rest of 2013, I look forward to what I believe will be an interesting year for the oil and gas industry.”
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 January to March 2013 reveal:
The Job Index dropped to 1.76 during January and February which can be explained by the Chinese New Year holidays, along with annual bonus payments. The demand for offshore construction continues to be driven by Singapore as companies look to involve themselves in the busy market.
The first quarter of 2013 was the lowest the Australasia Job Index has fallen for 15 months, with the exception of the December slowdown. This can be attributed to the cautious approach being taken in the region due to the European economic concerns having their impact felt in other parts of the world. As mega-LNG projects begin to move out of the design phase, we are beginning to see demand for candidates with experience. The Job Index is currently at 1.29 for the Australasia region.
The US markets were seeing high levels of production until recently when major infrastructure projects were delayed. The election also had its part to play, as companies waited to see if the results would have any impact on their sector. Canada is currently dealing with uncertainty of some of its future projects as they battle reduced oil prices. There continues to be a demand in both markets for skilled professionals.
Despite a decrease in the number of positions during the first quarter, the number of roles advertised is equal to the average of last year. The UK remains buoyant, whereas despite strong demand for G&P professionals in Denmark has also begun to lay off employees.
South America has seen a slow down in the market with both jobs and salaries being cut, this is due to the lack of bidding rounds for projects in the region. The need for imported specialists can seen in the rise in expat wages.
The African market experienced a difficult start to the year, attributed to political and in-country incidents. The downturn experienced in the general commodities sector appears to have affected the confidence in the stability and return on investments, as a result the Job Index has been pushed lower than previous. There is currently a strong demand for experienced expats in the region, required to steer local markets.
COMMONWEALTH OF INDEPENDENT STATES (CIS)
Credit rates were approved in February and the acquisition of the local TNK-BP was completed in March by Rosneft, which led to the first quarter of 2013 witnessing a decrease in new positions. As international companies offer better employee packages, the region is seeing a lot of candidates looking to join western or Russian companies.
Due to political movements within the Middle East the markets have been finding a number of challenges. Despite this the Gulf Cooperation Council has numerous projects currently being undertaken, which in turn is attracting candidates looking for opportunities.
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 www.hays-oilgas.com