Employment & Workforce Capacity and Capability

Introduction

The UK oil and gas industry provides 100’s of thousands of jobs in the UK and is a key part of the economy. As such it is important that the industry invests in its employment capability and capacity in order to ensure the sustainability of the skills base and the economy it supports. To monitor industry’s performance in this objective, the overall employment, both nationally and regionally are measured.

The capacity and capability of the workforce is important in ensuring the sector’s future workforce requirements. This is measured in a variety of ways, including the tracking of the demographics and the current efforts focussing on skills and training.

By attracting and retaining a skilled workforce against global competition and targeting demographic deficiencies, the UK oil and gas industry hopes to safeguard the 100,000’s of jobs it provides throughout the entire supply chain.

Employment – Background, Key Statistics and Commentary

In 2006, the UKCS oil and gas sector was estimated to provide employment for 480,000, of which 380,000 were involved in domestic production. This comprised 30,000 people in oil and gas companies and major contractors, 260,000 within the wider supply chain and 90,000 supported by economic activity induced by oil and gas employees’ spending throughout the economy. Up to an additional 100,000 people are employed in export activities by supply chain companies.

UK Oil and Gas Industry Employment 1991-2007 (excluding export activity)

UK oil and gas sector employment (estimate) by parliamentary constituency

Employment – Supplementary Statistics and Commentary

For more information, see the Supplementary Statistics Section.

Workforce capacity and capability – Introduction and Background

The industry is working hard to ensure that it retains a suitably sized and skilled workforce to meet future requirements and challenges. A key issue which has traditionally caused concern for the offshore industry in this area is the demographics of the workforce.

Oil & Gas UK has undertaken research into the demographics of the UKCS workforce in an attempt to accurately identify the current demographics and, in turn, highlight any areas which may need addressing to ensure the continued sustainability of the industry and its skills base. This was done using data from the Vantage POB system, an internet-enabled personnel tracking system foe people travelling offshore for the UK oil and gas industry.

Workforce capacity and capability – Key Statistics and Commentary

The research revealed that the average age of an offshore worker in 2006 was only 41 years, the expected average for any workforce aged between 20 and 60 years, and much lower than the common perception had held.

2006 UKCS Offshore Employment Demographics

Workforce Capacity and Capability – Supplementary Statistics and Commentary

For more information, see the Supplementary Statistics Section.