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Oil and Gas Industry set to boom

Paystream News

Michelle Derungs

Friday 7th Feb, 2014

There is more positive news on the horizon for contractors as the oil and gas industry is set to explode, with the Government giving oil and gas businesses a new licensing round for offshore drilling. The industry currently generates £14 billion on average per year supplying 350,000 jobs in the UK - a large amount of these positions are already filled on a contractual basis.

The Governments newest licensing round offers UK businesses the potential to build many more offshore drilling platforms, offering the UK the potential to continue on its road to economic recovery.

Contractors in the oil and gas industry aren't the only ones that are going to benefit from the newest licencing pass on offshore drilling. The development of new offshore oil and gas platforms will require construction and infrastructure experts along with maintenance and communications contractors. There is no doubt that the development of these platforms is going to have a knock on effect in terms of contractual labour in many industries.

However, although this is good news for many contractors, the shortage in skilled labour can cause problems for the future growth of these markets. A recent Employer Skills Survey 2013 revealed that 22% of 655,000 vacancies in the UK remain available because employers could not source appropriate skilled labour.

The Governments newest licencing round acts as a double edged sword to the UK economy, on one hand it will help cut down the UK's unemployment rates. However on the other, the lack of skilled labour could hinder growth of these markets and leave many job vacancies unfilled.

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