About 3-4 Jobs Lost In Other Industries For Every Oil And Gas Job That Is Lost
The low crude oil prices that has affected the oil and gas market globally, will leave an adverse impact on other industries as well. According to a recent estimate, for every job lost in the oil and gas industry, there are 3-4 jobs that are lost in other industries. This points to declining job security in states that were relied on the oil and gas industry for growth and jobs.
Steve Goldstein said in a recent article:
“Every job lost in the oil and gas sector may result in another three to four jobs lost outside the industry, according to a research note from Goldman Sachs’s Alec Phillips.
Phillips came up with his estimate by examining past energy-related downturns and comparing employment in the oil sector to employment in other industries in key energy-focused states such as Texas, Oklahoma and Louisiana.”
Long-Term Effect On Economic Growth
It is also feared that the slowdown in the oil and gas industry could have a long-term adverse impact on other areas of development. This includes having a negative impact on the economic growth of the area. Real estate prices are expected to see a dip within a span of two years from the slowdown.
Mike McDonald said in a recent article:
“That level of unemployment would have a severe long-term effect on house prices, sales tax receipts, economic growth in the area, etc. This is exactly what Australia is experiencing right now. So while the short-term impacts of oil’s decline have not been too bad, it certainly looks like there is more pain to come.”
This article highlights how the recession in the oil and gas industry is likely to have a negative impact on other industries as well. These include job losses in other industries apart from fall in real estate prices and slow down the economic growth of the region.