LZ 2067-40 C2. Labour Market and Economic Indicators Dashboard Mining, Oil and Gas Industry /dlberra Building and Educating Tomorrow’s Workforce Mining, Oil and Gas Industry Introduction By March 2006, 34 of 53 occupational groups tracked by the Alberta government showed an unemployment rate of three per cent or less, indicating skill and labour shortages. This document presents a series of economic indicators to identify labour and skill shortages or surpluses in industry sectors. Indicators such as the unemployment rate, vacancy rate, hiring difficulty rate and demand-supply ratio1 are used to determine the presence of shortages or surpluses now and in the future. This tool should not be used to make decisions. Instead, the intent of this dashboard is to spark discussion and give a snapshot of where the occupational cluster is likely to be within the next 10-year period. Additional provincial labour market information, including regional information, can be obtained at www.hre.gov.ab.ca/lmi to assist with decision making. What is a shortage? Shortages were determined by looking at the unemployment, vacancy, and hiring difficulty rates, as well as the demand-supply ratio for a number of occupational clusters within sectors. Occupations are sorted by industry sector as outlined in Appendix A. This booklet uses a t raffic light system to help define shortages, based on the following: Unemployment: If the unemployment rate of an occupation is less than three per cent, there is a shortage. Vacant jobs: If the vacancy rate of an occupation is more than two per cent, there is a shortage. Hiring difficulty: If the hiring difficulty rate of an occupation is more than 25 per cent, there is a shortage. Demand and supply of workers: A d emand-supply ratio of greater than one indicates a supply shortage while a ratio of less than one indicates a supply surplus. OccuSpatRioneal dcl- u sA tlle r si n daircea t ocrosd e sdh o wre d ,s h yoertlalgoew OorR g trheee n v a bcaansceyd roant e t hise o vfeorl l ofiwvien g:2 per cent and the reported hiring difficulty over 40 per cent. Yellow - O ne or more indicators show shortage. Green - A ll indictors show a s urplus. 1 S ee Appendix B f or more information about the unemployment rate, vacancy rate, hiring difficulty rate and/or demand-supply ratio. 2 S ee Appendix C f or more detailed information on the colour coding for each occupation. Labour Market and Economic Indicators Dashboard Manufacturing The mining, oil and gas industry is a b road industry that includes coal, electricity, minerals, natural gas, oil, oil sands, and petrochemicals. Energy technologies and services considerations include enhancing oil recovery, oil sands research, coal bed methane technology development, and clean coal development.3 4 Industry Challenges and Issues Although buoyed by very high prices in 2004 and 2005, the conventional oil technoloagnyd gas industry in Alberta is declining as the Western Sedimentary Basin matures. This has a number of implications: • there will be a g eneral decrease in overall labour demand, and • there will be a shift in skill requirements as the industry moves away from wildcat and step-out drilling to enhanced recovery methods. Other factors that contribute to the labour challenges faced by the mining, oil and gas industry include: • the sector’s vulnerability to fluctuations in world oil p rices, • the challenging working conditions and perceptions of the work being dangerous, • the seasonal nature of much of the work, • recruitment challenges such as inadequate community infrastructure, and finding the right skills, • an education system that is not responding fast enough to meet the demands of industry, and • relatively high levels of economic activity in other provinces and the US that hamper recruitment from other provinces and abroad. Occupational Cluster 2003 2005 2015 Administrative and Regulatory Occupations Shortage Concern Concern 3 T his information is based on Government of Canada statistics and projections for the North American Industry Classification System (NAICS) major group 23. 4 T he rationale for using 2003, 2005, and 20 1 5 a s years to show trend is indicated in Appendix D. Mining, Oil and Gas Industry Occupational Cluster 2003 2005 2015 § § Administrative Services Managers Concern Concern Surplus § Administrative Support Clerks SuSrplus Concern Su6rplus Architects, Urban Planners and Land Surveyors Shortage Shortage Shortage Auditors, Accountants and § Investment Professionals a Concern Concern Surplus § Central Control and Process Operators irr Manufacturing and Processing Surplus Concern Shortage Civil, Mechanical, Electrical and Chemical Engineers Shortage Shortage Concern § Cleaners Surplus Concern Surplus Labour Market and Economic Indicators Dashboard Occupational Cluster 2003 2005 2015 Clerical Occupations, General Office Skills Surplus Concern Su6rplus Clerical Supervisors Shortage Concern Concern Computer and Information Systems Professionals Concern Concern Surplus Contractors and Supervisors, Trades and Related Workers Shortage Concern Concern § Crane Operators, Drillers and Blasters Concern Concern Surplus Electrical Trades and § § Telecommunication Occupations Shortage Concern Concern § Heavy Equipment Operators Concern Concern Surplus Mining, Oil and Gas Industry g Occupational Cluster 2003 2005 2015 Human Resources and Business § Service Professionals Concern Concern Surplus Labourers in Processing, Manufacturing and Utilities Concern Concern Surplus Legislators and Senior Management Concern Concern SuSrplus Library, Correspondence and Related Information Clerks Shortage Surplus Concern B Machine Operators and Related Workers in Chemical, Plastic and Rubber Processing Shortage Surplus ConBcern Machine Operators and Related Workers in Metal and Mineral Products Processing Shortage Concern SuBrplus Machinists and Related Occupations Shortage Concern Concern ft Labour Market and Economic Indicators Dashboard Occupational Cluster 2003 2005 2015 Mail and Message Distribution Occupations Shortage Concern Concern 0 Managers in Communication (except Broadcasting) Concern Concern Surplus Managers in Engineering, Architecture, Science Information Systems Concern Concern Surplus Managers in Financial and Business Services Concern Concern Su0rplus Managers in Manufacturing and Utilities Shortage Concern Concern 0 Managers in Primary Production (except Agriculture) Shortage Concern Concern Managers in Protective Service Concern Concern Surplus Mining, Oil and Gas Industry Occupational Cluster 2003 2005 2015 § § Mine Service Workers and Operators in Oil and Gas Drilling Concern Concern Surplus Office Equipment Operators a Shortage Surplus Concern § Physical Science Professionals a a Shortage Concern Surplus Plumbers, Pipe Fitters and Gas Fitters Shortage Shortage Concern Policy and Program Officers, Researchers and Consultants Concern Concern Surplus Primary Production Labourers Concern Concern Surplus Printing Press Operators, Commercial Divers and Other Trades and Related Occupations, Not Elsewhere Classified Concern Concern Surplus Labour Market and Economic Indicators Dashboard Occupational Cluster 2003 2005 2015 Public Works and Other Labourers, Not Elsewhere Classified Concern Surplus Su6rplus Recording, Scheduling and Distributing Occupations a Shortage Concern Concern Sales and Service Supervisors Shortage Concern Concern § § Sales, Marketing and Advertising Managers Concern Concern Surplus Secretaries, Recorders and a a Transcriptionists Surplus Concern Surplus § Stationary Engineers and Power Station and System Operators Shortage Shortage Concern Supervisors, Mining, Oil and Gas Concern Concern Surplus