Marcellus Shale Gas Has Been Very Good for Pennsylvania's Labor Market and Overall Economy

The Pennsylvania Department of Labor and Industry recently issued a labor market report for the state's Marcellus Shale-producing region (which covers about 2/3 of the state, see map above), here are some highlights:

1. Employment in Pennsylvania's core shale-related industries increased by 114% between 2008 Q1 and 2011 Q1. 

2.  There were 214,000 employees working in Marcellus Shale related industries during the first quarter of 2011.
 
3. Marcellus Shale related industries had a total of 13,504 Pennsylvania establishments in 2011, which was a 63% increase, and a gain of more than 650 establishments, from 2008. 

4. The average wage in the core Marcellus industries was $76,036, compared to the average wage of $46,222 for all industries in Pennsylvania. The average wage in the ancillary shale gas industries was $62,581.

5. Total job postings for Marcellus Shale related industries were 62.3% higher in August 2011 than August 2010, compared to a 21.3% gain for all industries in Pennsylvania.

6. In 2011 Q2 there were 2,129 new hires in the Marcellus Shale related core industries, which was 138.1% higher than 2008 Q2. In 2011 Q2 there were 16,342 new hires in the Marcellus Shale related ancillary industries, which was 8.6% higher than 2008 Q2. Across all industries in Pennsylvania, total new hires in 2011Q2 were 8.3% lower than in
2008 Q2.

7. The number of Marcellus Shale wells drilled from January to August 2011 was 37.4% higher than over the same eight month period in 2010.

8. Five of the six state workforce areas with substantial Marcellus Shale drilling have experienced unemployment rate decreases from August 2009 to August 2011 greater than the average decrease for the whole state.