An industry jobs forecast in Alberta has some grim news for those working in the energy sector, saying that 25,000 people could lose their jobs in 2015.
Oil is currently sitting at $60 per barrel, well down from the price last year.
That means there is far less money to reinvest in new drilling projects.
The Canadian Association of Oilwell Drilling Contractors has revised its January jobs forecast and now predicts nine percent more job losses -- equivalent to about 2,600 positions -- because of an expected 13 percent further drop in operating days.
The association is now forecasting there will be 25,110 fewer jobs this year than last year -- a 50 percent decline in overall jobs in the sector.
While the job losses will be felt most in Alberta, experts say the impact will be felt throughout the economy.
“We will start to see more weakness, perhaps in the retail sector, and maybe a bit more weakness in the housing market,” says Todd Hirsch with ATB Financial.
He adds that the high price of oil over the past few years drove up costs on just about everything.
Bringing those costs down again will come at the expense of jobs.
In May, only about 10 per cent of Canada's drill rigs were active compared with almost 50 per cent in January.
(With files from CTVNews.ca)
