* Report finds several sectors of the economy stand to make major gains in the era of expensive fuel
High fuel costs threaten economic growth and will force everyone to pay more at the pump this summer, but a new report predicts that soaring energy costs will lead to a job boom that could rival the high-tech expansion of the last decade.
Outplacement firm Challenger, Gray & Christmas recent report finds that several sectors in the economy stand to make major gains in the era of expensive fuel. The quest for oil and natural gas, the construction of new power plants and refineries, and the development of alternative energy sources are all activities that will drive job gains.
“President Bush has proposed that the country build more refineries and more power plants. If his suggestions are followed, job creation is guaranteed for years to come, as demand increases for construction workers, plant manager, IT workers, and all of the other types of positions needed to build and then operate such facilities,” says John Challenger, CEO of the company that bears his name.
For example, the report cites a study by the Institute for America’s Future forecasting job growth at 3.3 million if Congress commits over $300 billion over 10 years for energy diversity programs. Even without this investment, the number of new jobs could exceed 750,000.
Texas and Alaska are two areas that stand to gain. According the Bureau of Labor Statistics, Texas employers in the natural resources and mining industry have brought on 4,000 new workers since March 2004. And oil lobbying firm Arctic Power estimates that somewhere between 250,000 to 750,000 jobs could be created in Alaska and across the country if new drilling is permitted in the Alaskan National Wildlife Refuge.
Challenger notes that a push towards renewable, alternative sources of fuel is also likely to produce new jobs, whether they be in research and development, manufacturing or marketing.
