Oil Industry Has Led to Loss of 195,000 U.S. Jobs Since 2014

Oil Industry Has Led to Loss of 195,000 U.S. Jobs Since 2014

By: Daniel Steingold | August 04, 2016

A new report published by Challenger, Gray & Christmas, an outplacement firm, claims that inexpensive crude oil has led the loss of 195,000 American jobs since mid-2014.

The loss of these particular jobs is thought to have an even greater impact, as according to Goldman Sachs, jobs in the oil and gas industry pay 84 percent higher than the national average.

95,000 positions have been cut in 2016 thus far alone, with many of these cuts having happened when oil prices fell to just a tick over $26 a barrel, their lowest point since 2003.

There were also a number of cuts this past July, and as oil is still struggling, further cuts may be on the horizon.

A number of firms, ranging from Baker Hughes to Schlumberger to Chevron have had mass layoffs in the past few months. Halliburton has been perhaps most affected, cutting over 30,000 jobs.

It should also be noted that firms that provide manufacturing goods for drilling oil, such as Caterpillar and Joy Global, have also been negatively impacted.

This new report does not refute projections that have already been made by Goldman Sachs in regards to the future boom of oil that will require somewhere in between 80,000 to 100,000 workers by 2018.

It is believed that the mass departure of individuals from the industry will lead to an even stronger need in the future.

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