Employment in Renewables Rose to 13.7 Mn in 2022, Solar Largest Employer: ILO

Employment in Renewables Rose to 13.7 Mn in 2022, Solar Largest Employer: ILO

The ILO, in a joint initiative with the the International Renewable Energy Agency (IRENA) has released the tenth edition of  Renewable Energy and Jobs: Annual Review 2023. The report explores the connection between renewable energy which is attracting increasing investment, and leading to job creation among countries.

Surge in Employment in Renewable Energy

The report finds an expansion in employment in renewable energy despite crises and challenges in industrial policies. It adds that industrial policies have created more localized supply chains while stating that employment in renewable energy reached 13.7 million in 2022. This, the report says, an increase of one million since 2021. This is an improvement from a total of 7.3 million in 2012, according to report by the two agencies. 

However, like previous years, most of the jobs are concentrated in a few states, states the report. The report elaborates that China accounts for 41 per cent of the global total, followed by Brazil, European Union (EU) countries, India and the United States of America (USA) among others. Together they represent the majority of global capacity installations and play key roles in the manufacturing of equipment, engineering and associated services, the report says.

The report reads, “Solar photovoltaics (PV) was once again the largest employer in 2022, the Annual Review found, creating 4.9 million jobs, more than a third of the total workforce in the renewable energy sector. Hydropower and biofuels had similar numbers of jobs as in 2021, around 2.5 million each, followed by wind power with 1.4 million jobs.”

Renewable Energy Jobs in Energy Transition

Francesco La Camera, IRENA Director-General, observed that “2022 was another outstanding year for renewable energy jobs, amid multiplying challenges. Creating many more millions of jobs will require a much faster pace of investments in energy transition technologies. Earlier this month, the G20 leaders agreed to accelerate efforts to triple global renewables capacity by 2030 aligned with our recommendations ahead of COP28. I call on all policy makers to use this momentum as an opportunity to adopt ambitious policies that drive the needed systemic change.”

ILO Director-General, Gilbert F. Houngbo, said, “To seize the significant opportunities to attain full, productive and freely chosen employment, social inclusion and decent work for all during these complex transitions, there is a need to develop and implement specific policies for inclusive macroeconomic growth, sustainable enterprises, skills development, other active labour market interventions, social protection, occupational safety and health and other rights at work, and find new solutions through social dialogue.”

Gender Diversity in Energy Transition

A just and inclusive energy transition must also pursue workforce development and diversity, the report explains. The report highlights the need to expand education and training and increase career opportunities for youth, minorities and marginalised groups. Greater gender equity is also essential, as at the moment, jobs in renewables remain unequally distributed between men and women, the report shares. Currently, solar technology has the best gender balance compared to other sectors, with 40 percent of jobs held by women, the study shows.

The report further sheds light on the countries that are showing increased interest in localising supply chains and creating jobs domestically, with support from appropriate industrial policies. This goes hand-in-hand with a growing desire to lessen energy supply insecurities. China has successfully pursued a broad array of these industrial policies for some years, the report suggests. More recently, the EU, India, Japan, South Africa and the USA have announced initiatives to stimulate domestic manufacturing. However, the report suggests that countries will need to find ways to combine localisation efforts with continued global cooperation in pursuit of an ambitious energy transition.