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Report: Marcellus Created 29% Fewer Jobs in 4Q2013 Than 4Q2010

The number of new jobs created in Pennsylvania in six "core" industries related to development of the Marcellus Shale was 29% lower in 4Q2013 compared with 4Q2010, according to a monthly report by the state Department of Labor & Industry's Center for Workforce Information & Analysis (CWIA).

According to a 10-page report released earlier this month, there were 1,739 new jobs created in the six core industries -- crude petroleum and natural gas extraction; natural gas liquid extraction; drilling oil and gas wells; support activities for oil and gas operations; oil and gas pipeline and related structures construction; and pipeline transportation of natural gas -- in 4Q2010. That number fell to 1,234 jobs new jobs created during 4Q2013.

During the four-year span, core jobs fell the most in the CWIA's North Central Tier Workforce Investment Area (WIA), which includes Cameron, Clearfield, Elk, Jefferson, McKean and Potter counties. There were 498 new jobs created in the six counties in 4Q2010, but only 40 were created there in 4Q2013, a decline of 92%.

Core jobs also fell 81.1% in the CWIA's Central WIA, which are Centre, Clinton, Columbia, Lycoming, Mifflin, Montour, Northumberland, Snyder and Union counties. In 4Q2010, 175 new jobs were created in the nine-county area, but only 33 were created there in 4Q2013. In the state's Northern Tier WIA -- Bradford, Sullivan, Susquehanna and Tioga counties -- core jobs fell 13.2%, from 121 new jobs in 4Q2010 to 105 in 4Q2013.

CWIA reported increases in core jobs in three areas. In the WIA shared by Fayetteville and Westmoreland counties there was a 59.4% increase, from 32 to 51 new jobs in 4Q2010 and 4Q2013, respectively. New jobs also increased 35.1% in the Tri-County WIA (Armstrong, Butler and Indiana counties), from 111 to 150, and by 5% in the Southwest Corner WIA (Beaver, Greene and Washington counties), from 222 to 233.

During the same four-year time frame, CWIA said the number of jobs created statewide at 30 industries classified as ancillary to Marcellus development increased 3%, from 9,160 new jobs in 4Q2010 to 9,436 new jobs in 4Q2013.

By comparison, Pennsylvania saw a 9.9% increase in new jobs across all industries in the state between 4Q2010 and 4Q2013.

Total employment for all Marcellus Shale-related industries was 241,926 during 2Q2013, the latest quarter where the figure was available.

There were 14,021 total business establishments related to the Marcellus during 2Q2013, the CWIA found. The agency said 1,089 business establishments (449 core, 640 ancillary) were added to the state from 2Q2009 to 2Q2013, equating to a 67.6% increase in core industries and a 5.2% increase in ancillary industries. By comparison, during the same time frame Pennsylvania saw a 1.6% growth rate for all industries in the state.

Marcellus-related jobs also commanded higher wages. According to data from the state's Quarterly Census of Employment and Wages, from 3Q2012 to 2Q2013, the average core Marcellus job paid $84,400 a year, while ancillary Marcellus jobs paid $65,200. By comparison, the average wage across all industries in the state during that time frame was $48,800.

Jobs in crude petroleum and natural gas extraction had the highest average wage for a core industry, at $112,888 annually, but the number of new hires in the field fell 27.2% between 4Q2010 and 4Q2013. Meanwhile, the highest-paying ancillary job was industrial gas manufacturing, which paid $126,603 a year. The number of new jobs created in that field increased 50% between 4Q2010 and 4Q2013.

According to the Allegheny Conference on Community Development, there were 14,800 participants between July 1, 2010 and June 30, 2013 in the ShaleNET program, which recruits, trains and places workers into Marcellus Shale jobs through a three-year $4.9 million grant from the U.S. Department of Labor's Employment and Training Administration (ETA).

According to ETA, the top five job placements for ShaleNET graduates were for roustabouts, floor hands, truck drivers, mechanics and casing specialists.

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