US Oil and Gas Extraction Employment Drops to Lowest Point Since August 2022
According to Rigzone, preliminary data from the U.S. Bureau of Labor Statistics shows the number of employees in the oil and gas extraction industry fell to 115,200 in April 2026, the lowest count recorded since August 2022.
A Steady Slide in Upstream Headcount
The April figure continues a downward trend that has now stretched across two consecutive years. Employment in the sector stood at 118,700 in April 2025 and 121,200 in April 2024, meaning the industry has shed roughly 6,000 extraction jobs over that two-year period, according to Rigzone’s review of BLS data.
Monthly figures through early 2026 also show a consistent drift lower: 115,500 in January, 116,200 in February, and 115,900 in March, before slipping further in April. For context, the BLS data, which spans January 2016 through April 2026, shows the sector employed 178,500 workers in April 2016, meaning the current workforce is roughly 35% smaller than that decade-ago peak. The BLS collects this data through its Current Employment Statistics survey, which samples approximately 119,000 businesses and government agencies each month.
What It Means for Subcontractors
- Watch before you commit. Falling extraction employment is a leading indicator of reduced operator activity. Subcontractors considering expanding crew sizes or signing long-term labor agreements should factor this trend into their risk planning before locking in commitments.
- Rate pressure may follow. When operator headcounts shrink, project scopes and service call volumes often follow. Field service companies that rely heavily on a small number of upstream clients are most exposed to sudden workload reductions.
- Track the revision cycle. The BLS noted that both March and April figures are still preliminary and subject to revision. Subcontractors should monitor updated releases, as revisions could shift the picture in either direction.
- Two-year trend matters more than one month. A single month’s dip could reflect seasonal patterns, but back-to-back April declines across 2024, 2025, and 2026 signal a structural softening in upstream employment worth watching closely.
