The International Energy Agency's report reveals a surge in energy sector jobs driven by clean energy investments, with solar PV and electric vehicles leading the way
According to the World Energy Employment Report published by the International Energy Agency (IEA), there has been a significant increase in global employment in the energy industry in 2022.
This is due to the growing investment in clean energy technologies. The report provides detailed information on the number of people employed in the energy sector, categorised by region, fuel, technology, and value chain.
The report says the global energy employment rate has gone up to 67 million this year, an increase of 3.5 million from pre-pandemic levels.
The report highlights that more than half of this employment growth was in five sectors: solar photovoltaic (PV), wind, electric vehicles (EVs) and batteries, heat pumps, and critical minerals mining. Solar PV was the largest employer, employing four million people, while EVs and batteries were the fastest-growing sectors, creating over a million jobs since 2019.
Fossil fuel industries also witnessed a year-on-year job growth; however, clean energy employment overtook the fossil fuel industry in 2021, now representing over half of the total energy sector jobs. The IEA's executive director, Fatih Birol, said the rapid acceleration in clean energy transitions creates millions of new job opportunities worldwide. Still, these vacancies need to be filled more quickly.
The World Energy Employment report highlights that there is a significant skills gap in the industry, with labour shortages fast becoming a considerable challenge to ramping up activity.
A survey carried out by the IEA with 160 energy firms globally revealed that the number of workers pursuing degrees or certifications relevant to energy sector jobs needs to catch up with growing demand, particularly for vocational workers and professionals in science, technology, and engineering.
Moreover, fossil fuel companies are trying to retain workers internally for positions in low-emission areas or to maintain flexibility based on changing needs. The IEA urges policymakers to focus on a people-centred approach and advocate for a just transition, especially in the coal sector, where employment has been declining consistently for several years due to increasing mechanisation.
The International Energy Agency also highlights that in its Net-Zero Emissions by 2050 scenario, nearly 30 million new clean energy jobs could be created, while close to 13 million jobs in fossil fuel-related industries could be at risk. Therefore, the agency calls on policymakers to focus on job training and capacity-building to ensure that energy transitions benefit as many people as possible.