Labour shortage looms in oilpatch, report warns
The Edmonton Journal
Tue 22 Jun 2010
Page: E3
Section: Business
Byline: Dan Healing
Dateline: CALGARY
Source: Calgary Herald; Canwest News Service
A survey of oilpatch employers adds to growing evidence that the industry is headed for a labour supply crunch resulting from stable oil prices and the resurrection of deferred oilsands projects.
A survey of 135 Canadian oil, gas and utility companies by human resources consultant Mercer suggests that with even modest growth the industry will be short 24,000 employees nationally by 2014.
The study results back up a report earlier this month by the Petroleum Human Resources Council of Canada that warned a severe oilpatch labour shortage could occur as early as next year and that the industry could require 100,000 new workers in the next decade.
Both studies show that the biggest demands will be for workers to replace retirees.
"Current recruitment and retention practices may need to be retooled to address demographic challenges, widening workforce gaps and looming talent shortfalls," Mercer said in a news release.
"Workforce planning is more important than ever for those employers wishing to avoid the market frenzy that was observed in 2006-07."
The survey found baby boomers, aged 45 and older, account for more than 40 per cent of the Canadian energy-sector workforce. Workers under 35 make up just 30 per cent.
Seventy-two per cent of workers have fewer than 10 years of service with their company while more than 30 per cent have fewer than two years, the survey showed.