Global Energy Employment: Insights from the IEA's 2024 Outlook
The recently published World Energy Outlook 2024 by the International Energy Agency (IEA) offers a comprehensive analysis of the current state and future prospects of the global energy sector, including an examination of energy-related employment.
One of the report's key findings is the steady rise in energy sector employment, driven primarily by increased investment in clean energy. In 2023, the global energy industry employed over 67 million people—4% more than in 2022. Notably, clean energy industries accounted for the majority of this growth.
Certain technologies have emerged as the primary drivers of new job creation. Employment in electric vehicle (EV) manufacturing and battery production saw significant gains, with 400,000 jobs added in 2023, bringing the global total to 2.7 million. China accounted for nearly 75% of this workforce, reflecting its dominance in EV and battery production. Meanwhile, the United States and the European Union, leveraging their established automotive manufacturing sectors, contributed about 20% of the global EV and battery workforce.
Solar photovoltaic (PV) and wind energy also experienced substantial job growth in 2023. These two sectors now employ a combined 6.2 million people worldwide, with most workers engaged in construction and installation activities.
Employment growth in clean energy has been more pronounced in advanced economies and China compared to emerging markets and developing economies. The muted growth in these regions is largely attributed to lower levels of clean energy investment.
The majority of clean energy jobs today are concentrated in the construction and installation of new projects, followed by operational roles. Manufacturing facilities for clean energy technologies are predominantly located in China, advanced economies, and Southeast Asia.
According to the IEA's Stated Policies Scenario, over 6 million new energy workers will be required worldwide by 2030, with EV and battery manufacturing expected to drive the largest employment gains.
While the clean energy transition creates new opportunities, it also leads to job losses in fossil fuel industries, particularly coal mining. Many displaced workers face challenges transitioning to other energy sectors, as new jobs may not align with their skillsets or be located near their current workplaces. Even highly skilled oil and gas workers may encounter barriers such as lower pay or fewer benefits in their new roles. Coordinated efforts among governments, labor unions, and industry are essential to provide financial support, skills training, and alternative opportunities for affected workers.
The energy sector is already grappling with skill shortages, which pose a significant risk to the pace of clean energy transitions. Many clean energy sectors compete for a limited pool of skilled trade workers, while other industries, such as oil and gas, nuclear, and hydropower, face talent losses as older workers retire. To address these shortages, companies have implemented various strategies, including raising wages, adopting automation, and increasing on-the-job training.
The burgeoning clean energy economy offers vast potential to stimulate local economies and enhance workers’ quality of life. However, realizing these benefits and closing the skills gap require significant investments in education and training by both the public and private sectors. Collaboration will be critical to developing a workforce equipped to meet the demands of a sustainable energy future.
