Challenges and opportunities for employment in the energy sector

The energy sector is undergoing a profound transformation driven by the transition to renewable energy, digitalization and environmental challenges, which directly affects the labor market.

According to the latest reports published by the International Energy Agency (IEA) and the International Labor Organization (ILO)the transition to renewable sources is multiplying employment opportunities, although it also poses challenges for those working in traditional industries such as oil, gas and coal.

However, for the International Labor Organization (ILO) The creation of green jobs could exceed the jobs lost in fossil activitiesprovided there is an active training and professional retraining policy. For its part, the United Nations emphasizes the importance of guaranteeing a just transitionwhich protects workers’ rights and promotes social inclusion, especially in regions dependent on conventional energy.

Other organizations, such as the International Energy Agency (IEA) and the European Commission, agree that investment in energy innovation and sustainability will serve to boost qualified employment, although they also warn about the need to pay attention to possible gender and age gaps in the sector.

Regarding the most in-demand job profiles, both the World Economic Forum and the Davos Forum point out that trends focus on renewable energy technicians, energy efficiency specialists and digitalization professionalswhich, in turn, requires a constant updating of skills.

Big picture

Regarding the employment situation in the energy sector worldwide, this presents a dynamic that varies significantly depending on the continent and the country. In Europe, according to data collected by the International Energy Agency, in its World Energy Employment Report 2023, The transition towards renewable energies has driven the creation of new jobs specialized, especially in countries such as Germany and Spain, where investment in solar and wind energy has been notable and has given rise to the emergence of technical and professional profiles related to these technologies.

In North America, the United States and Canada continue to generate employment in conventional sectors such as oil and gas, although there is a growing trend towards the development of clean energy, which is diversifying the labor supply and promoting new professional skills, according to the US Department of Energy, Energy and Employment Report. In Latin America, biomass and hydroelectricity drive the creation of jobs, with Brazil as a regional benchmark in job creation in the sector, according to data provided by the Inter-American Development Bank, in its report Employment in Renewable Energy in Latin America.

In the case of Asia, especially China and India, they are characterized by a large demand for labor in the construction and operation of energy infrastructure, both conventional and renewable, according to data provided by the International Renewable Energy Agency.

For the World Bank, on the African continent, access to employment in the energy sector is conditioned by the lack of infrastructure, although countries like Morocco are betting on solar energy as a way to generate new job opportunities. And in the case of Oceania, Australia maintains a robust and dynamic energy sector, with jobs in both mining and renewable energy.

Tendencies

At a global level, data and statistics reflect a positive trend in job creation within the energy sector, especially in clean technologies with a growing demand for professionals specialized in renewable energies, digital technologies applied to the sector and sustainability.

The International Energy Agency estimates that the solar photovoltaic sector will consolidate itself as the largest generator of employment within the energy industry, while jobs in fossil fuels continue to decline, with a drop of 5% annually in Europe.

This reflects the need for constant adaptation to technological advances and environmental challenges, consolidating the importance of training and specialization in the sector. For this reason, the ILO highlights the importance of training and professional retraining to avoid labor imbalances. For example, in the Spanish wind sector, 40% of current employees come from other industrial branches, which shows the need for public policies that promote training and adaptation to new professional profiles.

Internationally, energy employment represents 2% of the total workforce, with more than 65 million workers involved, according to data from the World Energy Employment Report. The countries that lead the creation of jobs in renewables are China, the United States, India and Brazil, while Europe is committed to quality and sustainable jobs.