Energy, Oil & Gas

Ageing workforce strains O&G talent pipeline: report

London
Ageing workforce strains O&G talent pipeline: report

The traditional energy sector is struggling to keep up with a shrinking talent pool, as a fewer percentage of young people enter the workforce, experienced professionals are harder to find, and global mobility declines, according to the tenth annual Global Energy Talent Index (GETI) 2026, an energy workforce trends report.

While AI adoption remains slower than other sectors, AI is being used to support career development. However, retaining existing talent and attracting new professionals remain key hiring challenges for 2026 and beyond.

Salaries and an ageing workforce

Produced by Airswift and supported by Energy Jobline, the report shows that 50 per cent of professionals and 60 per cent of hiring managers say that pay has increased in 2025.

However, while salary optimism remains strong, growth has slowed compared to previous years. 67 per cent of professionals expect pay increases next year, down from 71 per cent in 2025.

The workforce also continues to skew older: professionals aged over 45 now comprise 48 per cent of the workforce, while the share of professionals aged 25 to 34 has declined to 19 per cent.

James Allen, CEO at Airswift says: “The ageing workforce challenge is becoming increasingly urgent to address as traditional energy organisations are struggling to make hires with the right technical expertise and experience. With only a third of hiring managers actively recruiting graduates to build their talent pipeline, there is an opportunity for the sector to do much more to secure the people it needs.”

Global mobility

The report indicates a decline in global mobility, with only 75 per cent of traditional energy professionals now willing to relocate for work - down from 80 per cent in 2025 and 89 per cent in 2022.

Preferred destinations have also shifted, with the Middle East and Europe now sharing the top spot (25 per cent each), while Asia has remained steady at 16 per cent.

Jayden Wallis, President ASPAC & Airswift Resourcing at Airswift adds: “The Middle East is investing trillions of dollars to diversify their economies and are lowering barriers to entry so that organisations can secure the talent they need to deliver an ambitious pipeline of projects.”

AI and career development

Over the last three years, AI has had a significant impact on the energy industry. Now, 45 per cent of traditional energy professionals use AI in their role - a 187 per cent increase since 2024 (24 per cent). However, 30 per cent of professionals still do not use AI to support career development.

Despite concerns that AI could replace some engineering and technical operations roles, 50 per cent of the hiring managers say that these are the roles they struggle the most to recruit for.

To address these hiring challenges, hiring managers are changing recruitment processes and revising role requirements.

Nearly half of hiring managers are improving learning and development programs with a further 45 per cent using AI and automation to ensure its company has the skills it needs.

Wallis says: “Hiring managers are increasingly struggling to recruit experienced professionals, while a smaller percentage of younger talent is entering the workforce. With the cost of boomerang professionals - those returning post-retirement on a contractual basis - rising, companies need to be proactive in addressing the talent gap. Investing in retention and attracting younger generations will be essential for closing the gap and securing the talent needed for the future.” -TradeArabia News Service

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