Publication date:
April 6, 2025
Escalating Trade Tensions Could Dampen US Energy Job Market
The expanding tariff dispute may negatively impact hiring in the US energy sector, with potential ripple effects across related industries.
Energy
The ongoing trade war and recent tariff announcements by the US administration could have significant implications for the energy job market. While it's too early to predict the precise economic impact, economists suggest that the uncertainty created by steeper trade barriers may lead some employers in the energy sector to curtail hiring.
Andrew Flowers, chief economist at Appcast, describes the current situation as a "frozen market," anticipating a potential decrease in hiring and a possible increase in layoffs. The energy industry, which has been a relative bright spot in terms of employment, could face challenges if the tariff dispute escalates further.
Cory Stahle, an economist at the Indeed Hiring Lab, notes that US employers are already bringing on workers at the slowest pace in nearly a decade. The number of job postings in the US has also declined, with openings drifting downward from early January to the end of March.
While some areas of the energy sector, such as renewable energy and infrastructure, may remain relatively strong, other segments could be more vulnerable to the effects of trade tensions. Industries like oil and gas, which are heavily dependent on global markets and supply chains, might experience more significant impacts.
The ripple effects of these trade tensions could extend beyond direct energy production jobs. Supporting industries such as transportation, warehousing, and manufacturing – which have been beneficiaries of the energy boom – may also face headwinds.
Energy analysts suggest that the greatest impact on workers could come from lackluster hiring rather than immediate job cuts. However, in a worst-case scenario where tariff retaliation escalates into a full-blown global trade war, more substantial layoffs in the energy sector could become likely.
For energy traders and analysts, these developments underscore the importance of closely monitoring not only direct energy market indicators but also broader economic trends and trade policies that could influence the sector's growth and employment landscape.
Andrew Flowers, chief economist at Appcast, describes the current situation as a "frozen market," anticipating a potential decrease in hiring and a possible increase in layoffs. The energy industry, which has been a relative bright spot in terms of employment, could face challenges if the tariff dispute escalates further.
Cory Stahle, an economist at the Indeed Hiring Lab, notes that US employers are already bringing on workers at the slowest pace in nearly a decade. The number of job postings in the US has also declined, with openings drifting downward from early January to the end of March.
While some areas of the energy sector, such as renewable energy and infrastructure, may remain relatively strong, other segments could be more vulnerable to the effects of trade tensions. Industries like oil and gas, which are heavily dependent on global markets and supply chains, might experience more significant impacts.
The ripple effects of these trade tensions could extend beyond direct energy production jobs. Supporting industries such as transportation, warehousing, and manufacturing – which have been beneficiaries of the energy boom – may also face headwinds.
Energy analysts suggest that the greatest impact on workers could come from lackluster hiring rather than immediate job cuts. However, in a worst-case scenario where tariff retaliation escalates into a full-blown global trade war, more substantial layoffs in the energy sector could become likely.
For energy traders and analysts, these developments underscore the importance of closely monitoring not only direct energy market indicators but also broader economic trends and trade policies that could influence the sector's growth and employment landscape.
