I live near an area where there is a large prevalence oil and gas refineries and O&G-adjacent industries. The men and women who keep these plants running work a grueling schedule and are often involved in fairly risky activities due to the nature of the stuff they are dealing with (flammable or toxic materials). Despite this, tons of locals flock to these jobs and there there is a huge surplus of available people who are seeking these jobs. By huge, I mean people testify to applying to these jobs for literal years before they ever get an opportunity (many don’t without connection). Entry level typically requires experience or an Associates degree. I should note that experience is helpful but not critical, the job is not easy but is not rocket science either. These jobs can generally get you to 6 figures in the first year, and most top out around 150K in a MCOL area. The benefits are generally excellent, some even have pensions. Yes, these companies are extremely profitable and I’ve already mentioned that the work is hazardous and has odd hours, but with the massive surplus of willing and able labor, why do these companies still pay so highly?
In: Economics
This job doesn’t contradict the theory of supply and demand necessarily. It’s a really hard job. People only want to do it BECAUSE it’s high paying. If they paid a blue collar wage they would struggle to staff it. There’s also probably a divide between the people who want to do this job and the people who could feasibly do the job. If you have a surplus of applicants you can be selective and avoid bad hires, which are costly. Oil generates so much revenue that it’s worth it to pay to make sure there are not staffing shortages. It’s way more costly to have to decrease oil production due to staffing than it is to pay the employees what seems like a lot for labor work but is a pretty insignificant dollar amount in terms of the type of money an oil site can generate.
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