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Global Energy Sector Employment Sees Significant Growth, Outpacing Broader Economy

Maggie Johnson

Image Credit: “India’s contribution to global employment,” available at Yahoo Images (11/13/2024).


In 2023, the global energy sector demonstrated remarkable resilience, with employment rising by 3.8%, surpassing the broader economy's 2.2% growth. The International Energy Agency's (IEA) World Energy Employment report underscores this significant expansion, with the sector adding 2.5 million new jobs worldwide, reaching a total of 68 million energy sector jobs. Clean energy technologies, despite skill shortages, played a pivotal role in this growth.

The report unveils a promising trend in the energy sector, with clean energy sectors, including solar photovoltaic (PV), electric vehicles (EV), and battery manufacturing, emerging as the primary contributors to job growth. Solar PV alone added more than half a million jobs, driven by record installations. EV and battery production added 410,000 jobs as EV sales approached 20% of the global car market. Despite some layoffs in wind energy manufacturing, the sector saw net job growth with a record number of new projects under construction.

The oil and gas sector rebounded in 2023, adding over 600,000 jobs after a period of cautious post-pandemic rehiring. This rebound had a significant impact on overall energy sector employment, contributing to the 3.8% growth. However, coal employment continued its decline for the third consecutive year, primarily due to improvements in productivity.

A shift occurred in job growth patterns in 2023, with manufacturing leading the way. This shift was largely due to a 70% increase in clean energy manufacturing investments, which reached $200 billion. This surge in investment was driven by growing demand for clean energy technologies and supportive new policies. Clean energy has seen a transformation, with governments and private companies ramping up their investments not just for long-term sustainability, but also as a response to market demand for greener solutions.

However, a critical issue remains: the shortage of skilled labor. The IEA survey of over 190 energy employers across 27 countries found that many companies struggle to fill specialized roles, particularly in power grids and nuclear energy. These roles often require expertise in highly specialized skills, which are in short supply. Despite declining construction labor shortages in advanced economies, 75% of employers reported challenges in hiring skilled workers. This shortage is driving wage increases in the sector.

Global energy employment is projected to grow by 3% in 2024, despite challenges like tight labor markets, high interest rates, and shifting energy project pipelines contributing to slower growth. The IEA underscores the critical need for continued investment in workforce development and global cooperation to address these challenges, emphasizing the urgency of the situation.

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