US energy and chemicals workforce: Transforming for a resilient future

To help gain a deeper understanding of the E&C workforce, consider a holistic view—one that goes beyond headline direct employment numbers and considers other ways the sector manages its operations. For example, our analysis (see key highlights below) suggests that the sector’s implied employment⁶ has declined by only 2.1% since 2014, compared with a 6.5% fall in direct employment.⁷ This includes adjustments for productivity gains and the use of external talent ecosystems (third-party contractors and outsourced IT staff). The collapse of oil prices in 2014 and again in 2020 prompted the O&G sector, particularly the upstream and oilfield services subsectors, to focus on process innovations (such as multi-pad drilling and longer laterals) and digital transformation to boost productivity. Meanwhile, the downstream refining and chemical subsectors, with established processes and input-output ratios, have not experienced the same increase in labor productivity.⁸

Therefore, the key to honing a competitive edge is to adopt a targeted transformation approach to talent, covering employment structures, occupational composition, skills and capabilities, and mobility of both tasks and people.

• Market shifts have contributed to E&C companies looking to optimize their internal versus external capabilities, highlighting the sector’s growing agility. Investment numbers indicate that companies are equipping their workforce with more digital assets and broadening the scope of shared services.⁹ Likewise, maximizing the benefits of the external workforce can include integrated management of business operations and strategic utilization of the alliance ecosystem.
• A demand-supply imbalance exists for both critical (for example, operations specialists, technicians, and certain engineering areas of expertise) and essential occupations (such as mechanics, maintenance, and vehicle operators).¹⁰ Meanwhile, E&C companies continue to prioritize safety, compliance, and automation roles.¹¹
• According to Deloitte’s analysis, nearly two-thirds of tasks in the E&C sector are expected to remain human-driven, but the remaining third presents opportunities to deliver higher value, reduce risk, and improve speed and accuracy through the synergy of humans, machines, and generative and agentic AI.¹² Some companies are beginning to place greater emphasis on skills rather than solely focusing on core engineering knowledge.
• Virtual, onsite, and hybrid ways of working are being reevaluated. Taking jobs to people by offering remote work operations in nontraditional cities (for the E&C sector) such as San Francisco and Seattle may be needed for specific skill sets, but the availability of the digital talent pool is increasing even in less expensive cities such as Phoenix.¹³ Similarly, companies are bringing people to jobs in Houston and reemphasizing the importance of onsite operations. Companies could explore other cities near traditional hiring locations (for instance, in Louisiana, Colorado, and Pennsylvania) and evaluate the mobility of tasks (from remote and harsh environments to onshore in-office locations) to help broaden their talent sourcing strategy and stay competitive.¹⁴

Over the next 10 years, rapid digital developments, particularly in generative and agentic AI, are expected to alter workforce composition and productivity trends. The sector’s direct workforce employment is projected to increase by 4.1%.¹⁵ However, rather than focusing solely on direct employment numbers, consider enhancing workforce effectiveness and empowerment enabled by advanced analytics, next-gen tools and systems, and targeted upskilling—leveraging the full scale of talent from internal to external sources. Additionally, the leadership of US E&C companies will likely need to manage people and virtual agents/bots. They are also expected to face a challenge of upskilling nearly 60% of their workforce over the next decade.¹⁶ How companies respond could determine whether they drive the next wave of innovation and strengthen their position in the industry.

To learn more about how sector leaders can redefine their work, workforce, and workplace strategies to thrive in an evolving landscape, download the full report.