Louisiana is among five states hit hardest by oilfield job cuts—shedding 10,200 jobs thus far in 2020, according to a recent federal labor report.
While the U.S. economy added 1.8 million jobs in July, according to the Bureau of Labor Statistics, the Oilfield Services and Equipment Employment Report found that employment in the oilfield services and equipment sector fell by more than 9,300 jobs in July.
The monthly report, compiled and published by the Petroleum Equipment and Services Association, or PESA, shows total job losses due to pandemic-related demand destruction have reached 99,253. OFS employment is down more than 118,000 jobs since July 2019 and is at its lowest point since March 2017.
Using BLS data, PESA, in consultation with researchers from the Hobby School of Public Affairs at the University of Houston, estimates OFS sector jobs in the U.S. dropped from 764,189 in February to 664,936 in July, a decline of 13%. Losses were heaviest in April, totalling 59,306 jobs—the largest one-month total since at least 2013.
OFS employment year-over-year fell from 785,106 jobs in June 2019 to 664,936 in 2020, a decline of 15.1%. The jobs lost represent annual wages of approximately $12.7 billion.
Industry analysts anticipate additional job losses as the pandemic continues and jobs supported by emergency measures such as the Paycheck Protection Program are threatened by congressional inaction. Additionally, rising infection rates may depress economic activity as communities resume quarantines. Read PESA’s analysis. See the Bureau of Labor Statistics report.Â
This story first ran in 10/12 Industry Report. To keep up with regional industry news, subscribe to the free 10/12 Weekly e-newsletter.Â
