The oil and gas industry is entering 2025 with a host of new and evolving challenges in talent acquisition. As global economic conditions fluctuate, workforce expectations shift, and competition from the renewable energy sector intensifies, companies must rethink their recruitment strategies. Below, we explore the six major challenges shaping oil and gas hiring, supported by industry sources, and offer insights into how businesses can navigate this complex landscape.
1. Economic Uncertainty and Client Caution
According to Compunnel’s 2025 recruitment trends report, economic uncertainty remains a key factor affecting hiring decisions across sectors, leading to project delays and more conservative workforce planning. This trend isn’t unique to oil and gas. Industries with cyclical demand, such as manufacturing, have seen a sharp decline in staffing needs as businesses reassess their workforce strategies.
For oil and gas companies, this means striking a balance. While scaling back too aggressively can leave businesses understaffed when demand rebounds, over-hiring in an unstable market poses significant financial risks. To navigate this challenge, companies must adopt agile recruitment strategies—leveraging flexible staffing models like hiring freelancers in energy, investing in workforce forecasting, and ensuring they have access to a pipeline of skilled professionals when projects ramp up.
2. Talent Shortages and Skills Gaps
The oil and gas industry is facing a widening skills gap as an ageing workforce retires and new energy sectors emerge. According to Reuters, only a third of the 600,000 workers needed for global wind projects are currently trained, exposing a major labour shortage across the energy industry. To stay competitive, oil and gas companies must invest in workforce development, upskilling programs, and cross-sector training to attract new talent while retaining experienced professionals. Positioning the industry as a key player in the energy transition will also be vital in making it an attractive career choice.
3. Shifts Toward Permanent Employment
Both employers and employees are moving away from temporary staffing in favour of permanent roles, prioritizing stability and long-term career growth. Companies are recognizing the financial benefits of hiring full-time employees rather than relying on contingent labour, while workers are increasingly seeking job security, benefits, and clear career pathways.
A McKinsey & Company study on oil and gas workforce trends highlights Employee Value Proposition (EVP) as a key factor in talent retention. Companies that offer competitive salaries, career development opportunities, and strong workplace benefits will be best positioned to secure long-term employee commitments in an evolving job market.
4. Employee Retention Challenges
Talent retention is becoming a major concern for oil and gas firms, as professionals seek opportunities in sectors with better job security and growth prospects. The energy transition is also causing some experienced oil and gas workers to consider switching to renewable energy jobs, while younger professionals may be less inclined to stay in an industry perceived as having an uncertain future. Companies must craft targeted retention strategies, such as career development programs, competitive benefits, and flexible work arrangements, to keep their workforce engaged.
5. Regulatory and Policy Uncertainties
Government policies and regulations continue to shape recruitment strategies. Changes in environmental policies, tax incentives, and energy infrastructure funding can influence workforce planning. For example, Project 2025 (USA), which prioritizes oil and gas production on public lands, could lead to increased hiring in some regions while simultaneously impacting job creation in renewables and outdoor recreation industries.
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