Five Clean Energy Sectors Employ Around 9 million Workers: IEA Report

A latest report from the International Energy Agency (IEA) titled World Energy Employment (WEE) 2023 mentions five sectors that employ around 9 million workers today. Among these sectors, solar PV is reported to be the largest, creating around 4 million jobs. On the other hand, manufacturing of EVs and their batteries has reportedly been the largest source of growth, adding globally well over 1 million jobs since 2019, it states that clean energy investment has grown by 40% over the past two years.

The IEA report finds five main energy sectors to be the drivers behind employment in the energy sector. They are solar PV, wind, electric vehicles (EVs), battery manufacturing, heat pumps, and critical mineral mining. It has created a strong demand from leading energy firms to bring on more workers in clean sectors. Based on the trend, some regions continue to face tight labour markets and high interest rates, contributing to cautious hiring in parts of the energy sector. The report also provides an outlook for 2030 for energy employment sector-wise across sectors based on IEA scenarios. It outlines key policies that could help countries cultivate and maintain a skilled energy workforce throughout the transition.

Status of Clean Energy Jobs:

Currently, 8 million clean energy jobs will reportedly be added worldwide by 2030, with fossil fuel jobs declining by 2.5 million, for a net increase of 5.7 million. The increase in energy jobs to 2030 would be even greater in the NZE scenario, reaching 17 million. Supporting workers in declining fossil fuel sectors must go hand-in-hand with efforts to train the workers needed in clean energy sectors, as skilled labour shortages are emerging as one of the primary risks to energy transitions.

Energy employment has reportedly reached nearly 67 million in 2022, growing by 3.4 million over pre-pandemic levels. The clean energy sector has added 4.7 million jobs globally over the same period and stands at 35 million. Whereas, the trend suggests that fossil fuel jobs recovered more slowly after layoffs in 2020 and remain around 1.3 million below pre-pandemic employment levels, at 32 million, the IEA report said. 

Clean energy jobs have reportedly been the major driver of energy job growth in virtually all parts of the world over the last three years. But several regions also saw fossil fuel employment rise above 2019 levels, notably India, Indonesia, and the Middle East.

China, reportedly the largest energy workforce today, with nearly 30% of the global total, witnessed the largest rebalancing over the 2019–22 period. Clean energy jobs have reportedly grown by 2 million, and fossil fuel-related jobs are falling by 600,000, largely in coal. Today, 60% of China’s energy workforce is employed in clean sectors, compared to just over 50% in 2019. In this way, clean-tech manufacturing has been a major source of employment growth. It has employed roughly 3 million workers, accounting for 80% of solar PV and EV battery manufacturing jobs globally.

Today, 60% of China’s energy workforce is employed in clean sectors, compared to just over 50% in 2019. China’s buildout of clean-tech manufacturing has been a major source of employment growth. China’s clean energy manufacturing sectors employ roughly 3 million workers, accounting for 80% of solar PV and EV battery manufacturing jobs globally.

The energy sector reportedly needs more skilled workers than most other industries—36% of energy jobs are within high-skilled occupations by International Labour Organization (ILO) definitions, compared with 27% in the broader economy. Construction will reportedly make up nearly half of new energy-related jobs by 2030, on a path to net zero.

A proprietary survey of over 160 energy companies conducted by the IEA indicates that installation and repair work positions were the number one occupation segment for which respondents had the greatest difficulty hiring.
However, the number of workers pursuing degrees or certifications relevant to jobs in the energy sector is reportedly not keeping pace with growing demand. The gap is even more severe for vocational jobs. Conferrals of certifications relevant to energy, such as electricians and heating technicians, have flatlined in the United States and the European Union, and in China, they fell by around 9% per year in the years leading up to the pandemic. Meanwhile, jobs demanding these certifications are projected to grow by around 8% per year through 2030 on a net zero-aligned pathway.

Training in Clean Energy:

Clean energy training programs have reportedly become available to 19 of the G20 members as solar PV installers. But the governments need to address direct and indirect costs borne by workers pursuing retraining if this skilled labour gap is to be closed. It recommends that a skilled labour pool should be considered a key strategic pillar for regions looking to be competitive in new clean energy industries, as is attracting more women, who represent 15% of the energy workforce today.

Many of these workers could reportedly be switched into a new role with around four weeks of additional dedicated training. It could lead to 1.2 million workers shifting from fossil fuel heating to heat pumps and 4 million workers shifting from internal combustion engine (ICE) manufacturing to EVs between now and 2030 in the Net Zero Emissions by 2050 Scenario (NZE scenario).