The World Energy Employment 2024 report by the International Energy Agency (IEA) provides a comprehensive analysis of global energy sector employment, highlighting a robust growth of 3.8% in 2023, adding 2.5 million jobs to reach a total of 67.5 million workers. This growth outpaced the broader economy’s 2.2% increase, driven by record investments in both clean energy and fossil fuels, with clean energy sectors like solar PV and electric vehicle (EV) manufacturing leading job creation. The report notes regional disparities, with China dominating clean energy job growth, particularly in manufacturing, while emerging markets and developing economies (EMDEs) outside China struggle to attract clean energy manufacturing jobs due to structural barriers like limited skills and infrastructure.
The energy sector faces significant challenges, including persistent skilled labor shortages, particularly in installation and repair roles, with 75% of surveyed energy companies reporting difficulties hiring qualified technicians. These shortages, compounded by an aging workforce and high demand for digital skills, are prompting firms to increase on-the-job training and governments to enhance vocational programs. Wages in energy-specific roles are rising faster than in other sectors, reflecting competition for talent, though oil and gas workers still earn about 15% more than those in clean energy. The report emphasizes the need for policies to address these shortages and ensure a just transition, particularly for coal workers facing structural job declines.
Looking ahead to 2030, the IEA projects continued growth in energy employment under both the Stated Policies Scenario (STEPS) and the Net Zero Emissions by 2050 Scenario (NZE), with clean energy driving job creation, particularly in power and vehicle manufacturing. However, fossil fuel employment, especially in coal, is expected to decline, necessitating targeted reskilling programs to transition workers to clean energy roles. The report underscores opportunities to improve job quality, reduce informal employment, and enhance gender equity, noting that clean energy sectors like solar PV have higher female representation (40%) compared to oil and gas (around 20%). Effective policy interventions and collaboration among stakeholders are critical to managing labor transition risks and maximizing the benefits of the energy transition.