According to the Permian Basin Oil & Gas Magazine, U.S. energy services employment fell for the third consecutive month in February, dropping to 624,149 jobs from 625,256 in January and 629,372 in December. The data, released by the Houston-based Energy Workforce and Technology Council, shows Texas bearing the heaviest losses: the state shed over 2,500 energy services positions across those three months, falling from 306,693 in December to 304,148 in February.
The broader U.S. labour market compounded the concern. The economy lost 92,000 jobs in February, pushing the national unemployment rate to 4.4%, which the council described as a signal of a broader slowdown across multiple sectors.
In a March 12 statement, Council president Molly Determan said that “energy services companies are navigating a complex environment shaped by policy uncertainty, geopolitical risk and shifting global energy demand.” She added that clear, consistent policies around permitting, trade, and domestic energy development would be essential to restoring the confidence companies need to invest and grow the workforce.
Louisiana reported 52,116 energy services jobs, Oklahoma 47,498, Colorado 25,340, and New Mexico 23,343. All five states represent core operating regions for oilfield and industrial subcontractors.
What It Means for Subcontractors
- Three straight months of declining energy services employment means operators are tightening field budgets. Subcontractors in Texas, Louisiana, and Oklahoma should expect longer bid cycles and increased competition for available work.
- A national unemployment rate of 4.4% with 92,000 jobs lost in a single month suggests the slowdown is not limited to energy. Subcontractors who also serve general construction or industrial clients may see softening demand across multiple verticals.
- The council’s emphasis on “policy uncertainty” around permitting and trade points to regulatory headwinds that could delay project starts. Subcontractors with work tied to federal permitting timelines should build longer lead times into their project planning.
- Colorado and New Mexico, while smaller markets, are still posting five-figure employment in energy services. Subcontractors looking to diversify geographically should monitor whether these states hold steadier than the Gulf Coast corridor.
