Covid-19 impact: Job cuts in US oil field services sector accelerate

11 August 2020 (Last Updated August 11th, 2020 13:44)

The number of job losses in the US oil field services sector has accelerated recently as the Covid-19 pandemic continue to overwhelm the economy.

Covid-19 impact: Job cuts in US oil field services sector accelerate
The US oil field services sector lost 9,344 jobs in July. Credit: drpepperscott230 from Pixabay.

The number of job losses in the US oil field services sector has accelerated recently as the Covid-19 pandemic continue to overwhelm the economy.

Last month, the industry sector axed 9,344 jobs, a 43% increase from the number of job casualties reported in June.

The latest job loss figures were published in a report by industry-funded trade group Petroleum Equipment and Services Association.

Since the beginning of the pandemic, the oil field services sector in the US has lost more than 99,000 jobs hitting the lowest employment level in more than three years, Bloomberg reported citing the report.

The US states of Texas, Louisiana, Colorado, Oklahoma and New Mexico were among the most affected.

The report is prepared using the US Bureau of Labor Statistics data with assistance from the University of Houston’s Hobby School of Public Affairs.

It further warned that the industry outlook may further worsen in the near future.

Bloomberg quoted the report as saying: “Industry analysts anticipate additional job losses as the pandemic continues and jobs supported by emergency measures such as the Paycheck Protection Program are threatened by congressional inaction.

“Additionally, rising infection rates may depress economic activity as communities resume quarantines.”

Notably, the US is one of the worst affected by the pandemic reporting more than five million cases. The death toll in the country also crossed 163,000.

Covid-19 has infected more than 20 million people worldwide, killing more than 737,000.

Following the pandemic, several oil and gas companies around the world have announced job cuts as part of their efforts to reduce expenses. In June, Saudi Aramco started a process to axe hundreds of jobs.