The UK oil and gas industry will shed up to 35,000 jobs over the next five years as major firms cut spending plans in the North Sea, a report predicts.

But the industry will need to take on as many as 12,000 new entrants up to 2019. These will make up for those retiring, as well as to fill jobs in areas such as enhanced oil recovery and shale gas fracking.

The findings were revealed in a report commissioned by trade body Oil & Gas UK, skills group Opito and the Department for Business, Innovation and Skills (Bis).

The report, entitled “Fuelling the next generation – a study of the UK upstream oil and gas workforce”, said it expected the number of jobs currently supported by the North Sea – 375,000 – would fall 9% to 340,000 by 2019.

The current jobs estimate counts 281,000 jobs with “tier 1” operators and the supply chain, as well as a further 94,000 that are “induced” by the industry in terms of hospitality and leisure.

The report’s publication comes just days after the industry welcomed support in the form of a 2% tax cut in the Autumn statement, and other measures.

The report by EY found that oil and gas firms provide one in every 80 jobs in the UK. With average wages at £64,000 in the sector – compared with the national average of £26,500 – it is also very well paid.

The report also dispelled the myth that North Sea employment was being undermined by an aging workforce. The study found that just 13% of workers are over the age of 55 in the sector, which is lower than the national average of 32%.

The number of women in the workforce is low at 23%, compared to a national average of 47% although this was higher than initially expected. The oil & gas sector beats the aerospace sector for the number of female employees, although it is still lower than construction.

The EY report found that despite a five-year low in the oil price, up to 70% of those surveyed were still experiencing difficulties in recruiting.

The report said the skills shortage was less pronounced than 12 to 18 months ago, but firms were struggling to fill senior-level positions in technical safety, drilling, geosciences and business support.

The report also shows that the sector is making successful efforts to build a sustainable pool of talent for the future with 86% of companies having programmes in place for graduates and/or apprentices and the sector supporting 6,000 graduates and 13,000 apprentices.

John McDonald, managing director of Opito, said: “There is good news in this report. There is a self-correction that goes on in the industry from time to time. Yes there will be decline in some areas in terms of jobs but we will see growth in areas such as subsea, and we will see Aberdeen and the north-east become the hub of the export market to other oil and gas markets around the world.

“It is going to be employing a lot of people for a long time.”

He added: “We are not where we need to be in employment of women. But the previous figures said that women were just 3% of the workforce when it is 23%. The number of women is better but still not enough.”

Jacqueline Law, managing partner at full-service legal firm Aberdein Considine, says the report clearly spells out what oil and gas businesses need to do to survive.

“A fresh generation of 12,000 new entrants coming through is hugely positive for the north and north-east economy,” she said.

“However, that dependence makes the report’s suggestion that thousands of jobs could go over the next five years all the more worrying. Many firms are currently faced with the opportunity to move into export markets or even the shale industry, should it take off in the UK.

“I think this report highlights the need for businesses to grasp that opportunity before the UKCS decline begins to accelerate.”

Unite Regional Industrial Officer Tommy Campbell said: “Clearly, there is no room for complacency and from that end we would encourage the industry and government to work with offshore trades unions to ensure we have effective recruitment and training strategies in place, helping to sustain quality jobs and opportunities for future generations.”