International Energy Agency (IEA) released the second edition of the WEE report recently.

Key findings:

֍More people work in the energy sector today than in 2019, almost exclusively due to growth in clean energy, which now employs more workers than fossil fuels.

֍Energy employment reached nearly 67 million in 2022 — growing by 3.4 million over pre-pandemic levels. Clean energy sectors added 4.7 million jobs globally over the same period and stand at 35 million, while fossil fuels jobs recovered more slowly after layoffs in 2020 and remain around 1.3 million below pre-pandemic employment levels, at 32 million.

֍The uptick of clean energy jobs occurred in every region of the world, with China’s energy workforce undergoing an unprecedented reorientation toward clean energy.

֍Clean energy jobs were the major driver of energy job growth in virtually all parts of the world over the last three years, but several regions also saw fossil fuel employment rise above 2019 levels, notably India, Indonesia, and the Middle East.

֍China, home to the largest energy workforce today with nearly 30% of the global total, witnessed the largest rebalancing over the 2019-22 period, with clean energy jobs growing by 2 million and fossil fuel-related jobs falling by 600 000, largely in coal. Today, 60% of China’s energy workforce is employed in clean sectors, compared to just over 50% in 2019.

֍Amid the many positive trends emerging for clean energy employment, skilled labour shortages are already plaguing the sector and require attention.

֍The number of workers pursuing degrees or certifications relevant to energy sector jobs are not keeping pace with growing demand.

֍Many fossil fuel workers have the skills and specialisations needed to fill clean energy roles.

֍This transition risk is particularly acute for coal miners in emerging and developing countries. The coal supply workforce shrank by 225 000 jobs between 2019 and 2022, and under current policies is expected to further contract by 1.4 million jobs by 2030 —however most losses in coal mining are related to improvements in labour productivity and other efficiencies.

֍Oil and gas workers face less immediate transitions risks, but the long-term decline of fossil fuels demand is already shaping labour trends in the industry. Around 150 000 fewer people work in oil supply than in 2019, where companies have been wary of rehiring given changing trends.

֍Conversely, jobs in natural gas increased by 350 000 thanks to strong growth in LNG, making natural gas the only fossil fuel to have surpassed pre-pandemic employment levels by 2022.

֍Higher wages in the energy sector have helped attract workers from other industries, but wage disparities between energy segments could impede the transfer of needed skills.

֍In all scenarios, job growth outweighs declines to 2030, but avoiding skills shortages calls for more attention from policy makers, as does maximising the benefits of new jobs created. Based on today’s policies, 8 million clean energy jobs will be added worldwide by 2030, with fossil fuel jobs declining by 2.5 million, for a net increase of 5.7 million.