Oil price drop hits Scotland’s jobs outlook

Crude at $49: The new reality for big oil companies
Crude at $49: The new reality for big oil companies

The drop in crude prices has bumped Scotland’s employment outlook down to its lowest level in two years, according to a new survey from recruitment agency Manpower.

At minus 1%, Scotland is the only part of the UK with a negative outlook going into the second quarter.

The percentage is arrived at by subtracting the number of employers who said they plan to reduce headcounts in the coming quarter from those who intend to swell staffing levels.

More than 2,000 UK employers took part in the latest Manpower Employment Outlook Survey.

Manpower UK’s operations manager, Amanda White, said: “Scotland’s jobs outlook is at its most pessimistic level in two years and is eight points lower than it was heading into last year’s independence referendum.”

“The energy industry provides employment for around 200,000 people across Scotland and the recent fall in oil price has hit Scottish jobs hard, with the economy of its third largest city, Aberdeen, reliant on the sector.

“As well as an overall fall in the number of jobs available, we have also seen salaries impacted. For example, pay in Aberdeen has dropped, after a period of higher salaries driven by a booming resources sector.”

Edinburgh and Glasgow saw moderate growth in the financial services sector, but this could not prevent Scotland from dipping into negative territory.

The overall outlook for the UK remains at plus 6% for the third quarter in a row.

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