The Global Job Index for the first quarter traditionally sees a bounce back as hiring restarts after the holiday season slowdown in the previous quarter. Not surprisingly, Q1 2015 bucks the trend.
THE GLOBAL JOB INDEX YEAR ON YEAR COMPARISON
A return to higher oil prices is nowhere to be seen and the industry is starting to adjust to the new lower price regime. The Job Index for March 2015 is 0.95, a fall of 28% from December 2014 and a 42% fall year-on-year. The effect of the downturn is now being fully realized, as operating and service companies across all oil and gas regions implement strategies and cost measures to ensure they continue to remain profitable. Should an international agreement be reached with Iran to restart exports, we expect oil prices to remain on a downwards trend and potentially further weaken the job market.
That said, there are still pockets of reasonably strong activity: Asia and the Middle East both show an increase in hiring activity compared to the fourth quarter of 2014, albeit below Q1 2014.
YEAR TO DATE JOB INDEX PER REGION