Rising oil prices have yet to significantly affect staffing demand, but industry observers say sustained increases could begin to shift hiring patterns across several sectors.
“At this time, I do not anticipate notable impacts on staffing from recent increases in oil prices,” SIA Economist Michael Schultz said.
However, Schultz noted that if prices remain elevated, the effects could ripple through industries that are significantly influenced by energy costs.
“If oil prices remain elevated longer-term — such as over the next few months — energy-intensive sectors like manufacturing and transportation will face additional and meaningful cost challenges, with adverse implications most impactful for industrial staffing,” Schultz said. “Engineering staffing, however, may benefit as higher prices mean more domestic wells can be run profitably.”
Oil prices rose more than 10% on Thursday with Brent crude briefly topping $100 as the blockage of the Strait of Hormuz continued, Bloomberg reported. The American Automobile Association said on Thursday that gas prices in the US are up 35 cents from the previous week as the arrival of spring break season also helps raise prices.
For now, staffing firms report little direct impact. In an email to SIA, Tammi Heaton, co-CEO and COO at staffing firm PrideStaff, said higher prices did not appear to be impacting staffing at this time. Concerns over tariffs also seem to have died down, she said. It’s too early to say whether oil prices will prove to be a non-issue, Heaton said.
Uncertainty
Even without immediate change, higher prices are creating more uneasiness for businesses and workers, Ryan Festerling, president and CEO of QPS Employment Group said in an interview with SIA.
It was already an uncertain market for manufacturers and the higher prices add to concerns, Festerling said.
For general labor and light industrial candidates, it’s already a bit of a tight market, he added. It will cost candidates more to commute and they may start asking themselves whether it was worthwhile to take a job 30 miles away from their home for an extra $1 per hour. They could request assignments closer to their homes.
While these shifts have not come to pass, the uncertainty remains — and that can weigh on business and candidates.
“I feel like certainty whether it’s positive or negative is better than uncertainty,” Festerling said.
Energy
Energy staffing could also see a shift if higher prices persist.
“Through our Snelling offices across Texas, we’re seeing that higher oil prices haven’t yet translated into broad hiring,” Dave Gerstner, VP of operations at Snelling’s parent company HireQuest, said in an emailed statement to SIA.
“Most oil and gas companies are holding steady with their current teams, though in the past couple of weeks we’ve noticed a slight uptick in support roles such as inventory controllers, billing clerks and other administrative positions,” Gerstner said. “If oil prices remain elevated, we believe that a gradual increase in activity could lead to stronger growth for staffing. For now, companies are taking a measured approach, and we’re staying closely connected with clients across the market to understand where staffing demand may be heading next.”
Gig Economy
Higher fuel costs could also affect contingent workers and independent contractors such as rideshare drivers. DoorDash is one company that has measures in place. The company said in an email to SIA that its drivers have access to programs that can bring down the price they pay for gas. Marathon Arco Rewards members can earn 10 cents per gallon in rewards on fill-ups at participating stations through July 31, DoorDash said. A program at Shell locations can save drivers 10 cents per gallon on their first three fill-ups, and six cents per gallon for each fill-up thereafter.
Venezuela
There is a chance that changes in global oil supply could also reshape recruiting in some markets.
With current challenges obtaining oil from the Middle East, supply chains may expand to such places as Venezuela. Bloomberg reported that former Venezuelan oil workers — who are now expats — are much sought after by some recruiters. They have expertise working with oil in the country, though getting them to return could be a hard sell after 20 years of repression and economic collapse forced them to leave.
SIA will continue to monitor the impact of higher oil prices on the industry.
Source: SIA
