WASHINGTON—The falling oil and gasoline prices that for months have coincided with strong U.S. hiring have helped most Americans.
But they’ve come at a painful cost for workers in the energy and mining sector: 122,300 lost jobs in the past year.
Even as workers nationwide are earning slightly more than they did a year ago, average wages have tumbled 1.5 percent to $26.72 an hour for energy production workers.
The November jobs report that the government released Friday illustrates the divide between the broad economy and the ailing fossil fuels industry: Overall, U.S. employers added a robust 211,000 jobs, and the unemployment rate held steady at a healthy 5 percent. But the energy industry, reeling from falling oil prices and weakening global demand, shed 11,300 jobs.
In just 18 months, oil prices have cratered from $107 a barrel to roughly $40. And gasoline prices have plunged from around $3.70 a gallon to $2.05. Those prices could be poised to fall further, with OPEC deciding Friday to keep production running high.
One measure of the damage: Even as the overall U.S. stock market rocketed up 2 percent on Friday, an index of oil and gas stocks tracked by the New York Stock Exchange fell 0.5 percent.
The industry’s layoffs are expected to pile up as energy companies try to shore up their finances in light of the sharply lower prices.
“This is likely going to continue for six months or so as things settle out,” said Ken Medlock, an economist and Senior director at Rice University’s Center for Energy Studies in Houston.
