City predicted to lose 1,400 oil jobs

Around 1,400 onshore jobs in based in Aberdeen could be lost in the next three years, a new report has warned.

Professional services firm EY has issued a mixed 2019 forecast for Scottish economic growth.

The report states that employment in Aberdeen is expected to fall by an average of 0.1% annually between 2018 and 2021, with “extraction” being the “hardest-hit” sector.

This relates to onshore roles in the upstream sector with EY estimating 1,400 jobs will be lost in Aberdeen during period.

However, the report authors outline that other employment for the wider oil and gas sector relating to technology, admin and communication services is expected to increase.

The document states that 2018 is expected to see a total of 3,000 jobs shed across the city in various sectors.

The upstream losses come as the industry expects to hire 10,000 people in new roles over the next 20 years, according to a recent workforce report from skills body OPITO.

Mike Tholen, upstream policy director for Oil and Gas UK, said EY’s prediction shows the need that for focus on the industry’s Vision 2035 plan.

This aims to maximise North Sea recovery and double the supply chain’s share of international work by 2035.

He said: “While this doesn’t reflect the network of roles needed to support the sector, we hope it will help focus minds in support of industry’s Vision 2035.

“Far from being a sealed deal, the UK’s offshore oil and gas industry has an exciting future ahead of it if we realise its full potential.

“It means adding a generation of productive life to the UK industry through maximising economic recovery, and growing supply chain opportunities at home, abroad and into other sectors.”

Derek Leith, EY office managing partner in Aberdeen, said: “It is encouraging to see a more positive trajectory for the Aberdeen economy beginning to emerge with both GVA and employment growth predicted to significantly improve in the next few years.”

Michael Tholen