Texas Oil and Gas Industry Sees Soaring Employment and Wages
In a compelling economic analysis conducted by Chief Economist Dean Foreman of the Texas Oil & Gas Association (TXOGA), the Lone Star State’s oil and natural gas sector has exhibited remarkable growth in both employment and wages.
Texas Oil & Gas Industry Employment Surge
Freshly released data from the U.S. Census Bureau and the Texas Workforce Commission has illuminated a remarkable upswing in direct employment within Texas’ oil and natural gas industry. The figures reveal an impressive year-over-year (y/y) increase of 8.1 percent. This growth has seen the number of jobs soar from 445,222 in the first quarter of 2022 to a staggering 482,557 in the first quarter of 2023, as highlighted in TXOGA’s recent media release.
A Surge in Industry Wages
Alongside the surge in employment, the industry has witnessed a substantial boost in wages. Notably, wages have surged by an impressive 22.0 percent y/y. This surge has propelled wages from approximately $16 billion in the first quarter of 2022 to a formidable $19.5 billion in the first quarter of 2023.
Dean Foreman, the Chief Economist, commented on this remarkable growth, stating, “Employment in Texas’ oil and natural gas sector has expanded for the eighth consecutive quarter. The growth rate of 8.1 percent y/y in Q1 2023 ranks among the top 15 percent of all quarters since 1990. Significantly, the industry’s record-breaking $19.5 billion expenditure on total wages underscores its resilience in the face of ongoing challenges concerning labor supply and cost escalation.”
Upholding Optimism Amidst Challenges
TXOGA President Todd Staples weighed in on these impressive developments, stating, “Despite a recent slowdown in rig counts, which could potentially exert downward pressure on these numbers in the future, this analysis provides valid grounds for optimism. It offers continued evidence of the indomitable demand for oil and natural gas, a resource that plays an irreplaceable role in our modern society. However, growth is not assured, and it remains imperative that we maintain our commitment to fostering policies that bolster domestic production, retain jobs and benefits within our borders, and reduce our dependence on foreign nations to fulfill our energy requirements.”