Oil industry job cuts are here

Here is some bad news for oil and gas jobs.

In Wednesday’s ADP private payrolls report, Mark Zandi, chief economist of Moody’s Analytics said:

“Employment posted another solid gain in January, although the pace of growth is slower than in recent months. Businesses in the energy and

supplying industries are already scaling back payrolls in reaction to the collapse in oil prices, while industries benefiting from the lower prices have been slower to increase their hiring. All indications are that the job market will continue to improve in 2015.”

As the price of oil has fallen, many have worried about potential job losses in oil producing industries and states, particularly Texas and North Dakota — two of the premier oil-producing states, both of which boast unemployment rates below the national average.

In the latest Dallas Fed Manufacturing report, a number of business executives in Texas expressed concern over how oil prices could impact that state’s economy.

In his latest chart book, however, Deutsche Bank economist Torsten Sl√łk included the following chart, showing that while oil and gas jobs have been a driver of job creation in the current recovery, it hasn’t had an “outsized” contribution.

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