The United States is experiencing a surge in clean energy job creation and expansion, driven by the integration of renewable energy and energy efficiency technologies into the national power system. This trend is a positive development for the country's economy, as investments in clean energy infrastructure and projects necessitate an expanding workforce. It is the goal of the U.S. Department of Energy to create high-quality jobs that can provide sustainable support to American families. The correlation between increased wages for workers and heightened spending contributes to a greater demand for goods and services, sustaining the need for workers in the clean energy sector and positioning the United States as a global leader in the market.

Currently, there are slightly over 8 million jobs in the renewable energy sector. Notably, in both 2021 and 2022, employment in the energy sector outpaced the overall job growth in the United States. Recognizing the significance of workforce development in areas such as renewable energy, sustainable transportation, and energy efficiency, the nation aims to enhance power system security, reliability, and resilience, especially considering the escalating frequency of extreme weather events associated with climate change.

Resilient Employment Soars Amidst Challenges and Industrial Policies Fuel Local Supply Chain Growth

Global employment in renewable energy reached 13.7 million in 2022, a one-million increase from 2021 and a substantial rise from 7.3 million in 2012, according to the 2023 Annual Review by the International Renewable Energy Agency (IRENA) and the International Labour Organization (ILO). While renewable energy investments grow worldwide, most jobs are in a few key countries, notably China (41% of the global total), with Brazil, EU countries, India, and the USA also playing significant roles.

Solar photovoltaics (PV) led with 4.9 million jobs in 2022, accounting for over a third of the total workforce in the renewable energy sector. The study emphasizes the importance of both quantity and quality of jobs, urging a just and inclusive transition to a cleaner energy future.

The report highlights the unequal distribution of renewable energy jobs between men and women, emphasizing the importance of gender equity. It also notes increased global interest in localizing supply chains and creating domestic jobs, supported by industrial policies. However, the challenge lies in balancing local efforts with continued global cooperation for a successful energy transition.

Powering the Workforce: Navigating the Dynamics and Influences Behind Global Energy Employment

 Energy is one of the world's most capital-intensive sectors, dedicated to meeting the world's growing energy demands. There are numerous initiatives underway in the company, such as building energy-efficient power plants, expanding, or upgrading grids, and gaining access to new fossil fuel deposits. Accurate estimates of global energy employment hinge on planned investments, existing capacity, and production. The projections leverage the International Energy Agency's (IEA) comprehensive data on global investments, production, and demand, alongside national labor statistics, corporate filings, interviews, international databases, and academic literature.

Energy employment includes jobs directly tied to energy facility operation and construction, as well as indirect roles in manufacturing specific to the energy industry. There are no indirect jobs associated with the production of general goods. We normalized the numbers to full-time equivalent (FTE) employment for consistency, encompassing informal workers to better reflect energy policy impacts on the labor force.

There are several factors affecting the regional distribution of energy jobs, including concentrated construction in growing markets, global supply chain dynamics, varying compensation, and the prevalence of part-time, temporary, and informal jobs. Fast-growing markets dominate the workforce due to the labor intensity of building new facilities. Certain countries are central to global supply chains for upstream components, like China's solar PV manufacturing. Worker compensation varies significantly, with differences in labor costs and benefits contributing to disparities. Part-time, temporary, and informal work practices, common in emerging markets, further impact sector employment dynamics. Short-term projects, especially in developing economies, can create temporary jobs with substantial income contributions.

High-skilled Labors Dominates the Energy Sector with Above-average wages

The energy sector has a substantial demand for highly skilled workers, surpassing other industries, with 45% of the workforce requiring some form of tertiary education, ranging from university degrees to vocational certifications. There are less than 10% of energy employees who are low-skilled, most of whom are unemployed or underemployed. These numbers may not fully reflect informal workers in emerging markets and developing economies.

Geographical disparities outweigh those across sectors, as EMDEs employ more low-skilled or informal workers in manual tasks, while advanced economies have automated or mechanized many labor-intensive aspects of the energy business.

The high level of skill required in the energy sector corresponds to higher average wages. Energy sector wages typically exhibit a premium over economy-wide average wages, with variations ranging substantially from 10% to 50% across advanced economies alone. This premium is consistent across all regions, but the wage differences between advanced economies and EMDEs remain significant, with geographical variations surpassing job variations within the energy sector in the same region.

Traditionally established industries such as nuclear, oil, and gas tend to offer the highest wages. Industries with a substantial workforce in construction, such as panel installation for solar energy or energy efficiency retrofits, usually have lower wage premiums. Emerging sectors like solar also exhibit less union representation compared to established fossil fuel industries, especially in EMDEs. Labor representation has been a factor contributing to higher wages in certain parts of the energy sector, such as coal jobs in India, which receive compensation around three to four times the national average.

All scenarios outlined by the International Energy Agency call for an increase in energy employment, which will lead to an increased demand for workers with specific skills. Addressing the growing need for skills emerged as a concern in interviews conducted with companies and dialogues held in the IEA's Clean Energy Labor Council between governments and labor leaders.

Many of the required skills are present in adjacent industries. For example, project managers in residential construction possess some of the skills needed to manage the construction of solar farms. Companies express an intention to transition existing employees from carbon-intensive activities to other parts of their portfolio, rather than exclusively seeking new hires or dismissing workers. This trend is particularly noticeable in the electricity and other clean energy sectors, where firms are either experiencing rising employment or reallocating their workforce internally. To facilitate this, companies are implementing internal upskilling and reskilling programs in collaboration with universities.

Several firms highlighted facing a highly competitive environment for hiring candidates with the necessary skill sets, particularly in fields related to science, technology, engineering, and mathematics (STEM), followed by project managers and other technical roles. There are concerns about the high turnover of workers possessing the most in-demand competencies, a trend that has intensified during the COVID-19 pandemic.

Establishing strong connections between employers and universities or vocational training programs is a way to fill talent pipelines. Research grants for PhDs, internships, apprenticeships, and new graduate rotation programs are strategies to cultivate, attract, and retain key talent. Companies emphasize the growing need to update teaching curricula, particularly in high-demand fields such as engineering, economics, and information technology. Surveyed companies express a willingness to collaborate with universities to shape new curricula.

The IEA plans to expand its analysis on the increasing need for skills in declining energy sectors and adjacent industries.


In a nutshell, we can conclude that unlocking the full potential of clean energy requires a strategic approach that transcends technological advancements alone. In this comprehensive initiative, we delve into the foundations of sustainable progress, advocating for standardized education, incentivizing innovation, forging vital linkages, and fostering market stability—key elements that collectively propel the clean energy sector towards a greener and economically robust future.