Understanding the Job Needs of Extractives

At a Glance
  • There is often a need for targeted training efforts in less developed markets because employment often focuses on basic and low skilled labour.
  • The development of skills that are common to all sectors, as well as the creation and support of cluster development with other industries, can create and enhance local capabilities that can be transferred to other sectors
  • The development of cross-sectoral skills is important because petroleum and mining sectors are highly sensitive to business cycle variations which often lead to employment contraction.
  • The Mining a Mirage report (available in the Key Resources section below) is one of many studies that analyze the impact of automation on mining employment and its implications for policy making.

Key Resources

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Matching Skills and Labour Market Needs, Building Social Partnerships for Better Skills and Better Jobs

This report looks specifically at matching jobs with workforce skills, and contends that skills mismatch has become a high-priority policy ...

Mining a Mirage. Reassessing the Shared-Value Paradigm in Light of the Technological Advances in the Mining Sector

This report reviews the shared-value paradigm in relation to sustainable development, and the impact of productivity-increasing automation ...

Role of Mining in National Economies

This report offers a comprehensive overview of mining's contribution to the global economy, with a focus on the role extractives have played ...

The Oil and Gas Industry in Uganda: Employment Trends, Vocational Education and Training, and Skills Needed

Through a case study in Uganda, this report examines The National Oil and Gas Policy in relation to developing Uganda's oil and gas ...

Oil and Gas Extraction: North American Industry Classification System 211

This site provides detailed statistics on the US oil and gas industry, including information on characteristics of the labor force and ...

Studies on Employment and Extractive Industry-dominated African Countries

With the aim of providing recommendations on how to strategize a set of productive employment growth policies, this paper examines the ...

Topic Briefing

A broad set of skills is required to plan and execute an extractive project, ranging from basic to highly specialized labor. In less developed labor markets local employment often focuses on basic and low skilled labor. Consequently, there is often a need for targeted training efforts.

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Policymakers are concerned not only with an immediate increase in employment (for example, increasing the percentage of local employment in the extractive sector) but with actions that will lead to long-term job increase (e.g. the provision of appropriate skills training to the local labor force). This type of policy does not lead to an automatic increase in local employment but, if done appropriately, can create and enhance local capabilities that can be transferred to other sectors. Such enhancement includes the development of skills that are common to all sectors, as well as the creation and support of cluster development with other industries that have a natural synergy with the petroleum or mining sectors. Developing cross-sectoral skills is important because petroleum and mining sectors are highly sensitive to business cycle variations where high commodity prices lead to increased activity, leading to increased employment and low commodity prices. This in turn will lead to decreased sector activity and contraction of employment (particularly in mining).

The global pressure on the extractive sector to automate and digitalize operations to be competitive creates additional challenges in the industry to create and retain jobs in the future, as well as the type and size of jobs it can generate. This trend is important to policymakers trying to leverage extractive projects to further the domestic human capital, particularly if they are in remote, and underdeveloped regions. The Mining a Mirage report found in the key resources below, is one of many studies that analyze the impact of automation on mining employment and its implications for policy making.