Saturday, December 17, 2016

Tell Me Again How Oil Extraction Is the Panacea for Employment Growth?

The top chart shows the total number of employees in the oil extraction area.  Yes, it increased from 120,000-200,000 between 2005 and 2015.  That's a whopping 80,000.  But as the bottom chart shows, the total number of oil jobs is still less than 1% of all payroll jobs.  

Let's assume a 4-1 multiplier effect -- for every 1 oil extraction job created, 4 additional jobs are created.  That would only be a total of 320,000 jobs -- about 2-3 months of job gains at the current pace of creation.

There's just not much here from an employment perspective.