US oil and gas wages hit record in April
Wages for U.S. oil and gas workers hit a new record in April as a wave of acquisitions in the shale industry has yet to impact the workforce.
The average hourly wage for frontline oil and gas workers rose 0.5% from March to $44.67, according to a Department of Labor report released Friday. Compared to a year ago, oil salaries have risen 3.2%. The strength in wages coincided with a national trend, pushing back bets on Federal Reserve rate cuts.
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The US oil and gas industry is in the midst of consolidation: the five largest operations in the sector in the last 12 months total almost $200 billion in debt and equity. As shareholders demand higher profits, industry bosses are buying up competitors to cut costs and extend the life of their assets. But those planned cost reductions have not yet had a significant impact on workers.
Compared to a year ago, oil salaries have risen 3.2%
The total number of oil and gas workers rose less than 1% month-on-month to 119,900 in May. The unemployment rate in the oil and gas sector rose to 3.1% in May, up from 1.8% a year earlier.
