The number of jobs in the global energy sector rose in 2022 as growing investment in clean energy technologies drove demand for new workers in every region of the world, according to a new IEA report.
The second edition of the World Energy Employment report, which is published annually, maps energy sector employment by region, fuel, technology, and value chain. The report provides a data-rich foundation for policy makers, industry, labor, and educators to understand the labour-related impacts of clean energy transitions.
“The unprecedented acceleration that we have seen in clean energy transitions is creating millions of new job opportunities all over the world – but these are not being filled quickly enough,” said IEA Executive Director Fatih Birol.
“Governments, industry and educational institutions need to put in place programs to deliver the expertise needed in the energy sector to keep pace with growing demand, particularly to manufacture and build the clean energy projects necessary to meet our energy and climate goals,” he added.
Global energy employment rose to 67 million people in 2022, an increase of 3.5 million from pre-pandemic levels. More than half of employment growth over this period was in just five sectors: solar PV, wind, electric vehicles (EVs) and batteries, heat pumps, and critical minerals mining. Of the five sectors, solar PV is by far the largest employer, accounting for 4 million jobs, while EVs and batteries were the fastest growing, adding well over 1 million jobs since 2019.
Jobs in fossil fuel industries have also seen an increase year-on-year, but the rebound has been more subdued, leaving fossil fuels below pre-pandemic levels, despite oil and gas companies experiencing record revenues in 2022. As a result, clean energy employment represents over half of total energy sector jobs, having overtaken fossil fuels in 2021.
The uptick of clean energy jobs occurred in every region of the world, with China, home to the largest energy workforce today, accounting for the largest share of jobs added globally. The expansion of clean energy industries is also generating upstream jobs in critical mineral mining, which added 180 000 jobs in the last three years, highlighting the growing importance of these essential elements in the new energy economy.
However, a growing number of energy industries are citing skilled labor shortages as a key barrier to ramping up activity, according to a proprietary survey carried out by the IEA with 160 energy firms globally. The report finds the number of workers pursuing degrees or certifications relevant to energy sector jobs is not keeping pace with growing demand. This is particularly the case for vocational workers like electricians specialised for energy-sector work, as well as professionals in science, technology and engineering.
Around 36 percent of the world’s energy workers are in high-skilled occupations, compared with about 27 percent for the wider economy. Some fossil fuel companies are retraining workers internally for positions in low-emissions areas to retain talent or to maintain flexibility as needs arise.
