While job growth lifts most of US economy, oil patch suffers 

WASHINGTON (AP) — The falling oil and gasoline prices that for months have coincided with strong U.S. hiring have helped most Americans. But they’ve come at a painful cost for workers in the energy and mining sector:

122,300 lost jobs in the past year.

Even as workers nationwide are earning slightly more than they did a year ago, average wages have tumbled 1.5 percent to $26.72 an hour for energy production workers.

The November jobs report that the government released Friday illustrated the divide between the broad economy and the ailing fossil fuels industry: Overall, U.S. employers added a robust 211,000 jobs and the unemployment rate held steady at a low 5 percent. But the energy industry, reeling from falling oil prices and weakening global demand, lost 11,300 jobs.

In just 18 months, oil prices have cratered from $107 a barrel to roughly $40. And gasoline prices have plunged from around $3.70 a gallon to $2.05. Those prices are poised to fall further, with OPEC deciding Friday to keep production running high.

The industry’s layoffs are expected to pile up as energy companies try to shore up their finances in light of the sharply lower prices.

“This is likely going to continue for six months or so as things settle out,” said Ken Medlock, an economist and Senior director at Rice University’s Center for Energy Studies in Houston.

For most American consumers and companies, cheaper energy has been an unexpected gift. Drivers are paying less for gasoline. Jet fuel costs have plunged for airlines and shipping firms. Heating oil expenses have dipped ahead of winter.

Average gas prices nationwide are likely to slide below $2 a gallon in the next several days, bringing them to their lowest level since March 2009, said Tom Kloza, global head of energy analysis at the Oil Price Information Service.