Overall Trends
About LMI >
Overall Trends
In 2011, the first baby boomers reach 65. This is significant as
it means more workers leave Canada's workforce than enter it,
opening the gap between labour supply and projected labour
needs.
For the petroleum industry this is a major concern. Over 30% of
the industry's core workforce is expected to retire within the next
decade, at the same time as traditional labour pools decline.
Projections of the industry's workforce by the Petroleum HR
Council show that even if energy prices and industry activity
levels are low, there remains a need to hire approximately 39,000
workers just to replace workers lost due to age-related
attrition.
If energy prices are high over the next few years, activity
levels will surge and significant labour shortages will hit the
industry in 2012, driven largely by the staffing needs of the
Services, Exploration and Production and Oil sands sectors. In
fact, some of the new demand is inevitable as oil sands companies
will hire for plants currently under construction. The industry may
need to add over 130,000 workers between 2010 and 2020 if increased
activity levels occur.
Other challenges faced by the industry include:
- High turnover rates in certain occupations;
- Attraction and retention of workers in hard-to-recruit
locations;
- Managing labour costs;
- Competition for top talent; and
- Development of the workforce to keep pace with technological
innovation.
Up-to-date and credible Labour Market Information (LMI) is vital
to improve management and development of the industry's workforce.
Visit the LMI library to find products with
tailored information and solutions for the human resources needs of
the petroleum industry.
Meeting the challenge of the projected labour shortage will be
difficult, but industry has already started to enhance human
resource strategies:
- Many industry employers report they strived to retain key
workers through the downturn, thereby preserving critical capacity,
skills and knowledge that will be needed as the industry
recovers.
- Industry is leveling the workload from season to season using
new technology and better practices.
- Industry is showcasing its environmental success stories - a
major consideration for young entrants entering the workforce.
For more details on the industry's labour market: