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What Do The Latest Oil and Gas Job Cuts Mean?

16 Jul 2014

Aberdeen Harbour

Following the news that there have been further job cuts in the Aberdeen job market, Eden Scott Managing Director James Milne provides some context into why there has been changes within some oil and gas firms over the past few weeks.

Many small independent oil and gas companies are investing and growing their teams in Aberdeen

James Milne Eden ScottThere have been various announcements over the last eight to ten weeks by a few employers ranging from redundancies to contractor reductions. When businesses start to reduce numbers it is only understandable that this will result in a feeling of uneasiness, however it is worth remembering that employment rates in Aberdeen remain at a record high and only 2% of the city's 220,000 population is unemployed.

Large firms are reducing costs to counter balance the rising operational costs that they face. Costs to produce a barrel of oil in the North Sea have increased 30% in the past year, which has resulted in firms having to face the difficult decision to reallocate staff to other areas of the business.

The positive news is that many small independent oil and gas companies are investing and growing their teams in Aberdeen. People moving from the larger firms to smaller businesses have the potential to add a huge amount of value and knowledge as companies continue to invest in new markets.

Whilst the oil and gas skills gap remains, businesses are seeking initiatives to reduce this and welcome new talent into the industry; such as focusing on the graduate market, providing apprenticeships and accepting talent from other industries. Firms are also spending heavily on staff training and knowledge sharing in order to bridge the bridge gap even further.

Whilst there's an interim period of contraction in Aberdeen, the market remains buoyant and those needing to find a new role will likely do so quickly with the abundance of job opportunities across Aberdeen's oil and gas market at the moment.

Click here for a soundbite from James' feature of Northsound 1.

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