As we shared in the January 2022 Pulse Survey Report, engineering staffing segment revenues were up a median 11% year over year in December 2021, down a bit from the 15% increase in the November report, which covered October 2021 revenue. In the November report, a net 83% of firms reported positive year over year revenue growth, but that dropped to 44% in January. Nonetheless, trends in new orders and gross margins were strong; a net 52% of respondents expected increasing new orders in the next six months, and a net 35% expected an increasing gross margin percentage in the next six months.

But energy markets have changed since the last Pulse. After a steady recovery in oil prices over 2021, markets have gone wild in the first few months of 2022, largely due to the uncertainty surrounding the conflict in Ukraine. Notwithstanding a large decline in mid-March, oil prices have soared to their highest levels since 2014.

However, as Deloitte’s 2022 Oil and Gas Industry Outlook points out, only 50% of the 100,000-plus jobs lost in the 2020 oil price crash have recovered. The process has been hampered by an aging workforce and a growing number of green mandates. Furthermore, a portion of displaced workers has switched to the booming technology industry. Seventy-five percent of the underlying survey’s respondents believe that retaining workers could depend on “flexible and agile workforce structures that empower remote, hybrid, and cross-border teams.” This implies benefits programs and work structures at firms in the industry need to be revised, and reskilling/upskilling should be looked upon with greater urgency.

That being said, the current environment is helping to heat things up from an energy employment perspective. The March Beige Book points to increased oil and gas production and rising liquefied natural gas activity after pandemic-induced delays. The March 2022 Jobs Report correspondingly shows double-digit growth in natural resources/mining jobs; employment in the industry group rose to 600,000 in February, which represents growth of 10.7% year over year and is the highest increase since April 2020. This comes after impressive increases of 8.2% in January and 6.5% in December.

Taking a broader look, TechServe Alliance reported engineering employment was up 3.42% year over year in February. And the SIA | Bullhorn Staffing Indicator for the week ending March 12 shows temporary staffing hours worked in professional occupations (IT, healthcare, finance, engineering, etc.) were up 21% over year.

The next Pulse Survey, which is set to be completed by March 25, will give more up-to-date insight into current engineering demand given heightened oil and gas activity and decreasing pandemic-era interruptions. To participate in Pulse and other reports, look for invite emails or visit our Surveys webpage.