The global energy sector is experiencing a surge in employment, but a looming skills crisis threatens to derail future progress. According to the IEA's latest report, the energy industry's job growth is outpacing the overall economy, with a 2.2% increase in energy jobs last year, nearly double the rate of employment growth for the wider global economy. This rapid expansion is driven by strong investment in energy infrastructure, particularly in solar PV, nuclear power, grids, and storage. However, the report highlights a critical concern: a growing shortage of skilled labor, which could significantly impact the industry's ability to meet its infrastructure needs.
The World Energy Employment 2025 report reveals that global energy sector employment reached 76 million people worldwide in 2024, a significant increase from 2019. The power sector is leading the way, accounting for three-quarters of recent employment growth and overtaking fuel supply as the largest employer in energy. Fossil fuel employment remained resilient in 2024, with coal jobs rebounding in India, China, and Indonesia, despite declines in advanced economies. The oil and gas industry has also regained most of the jobs lost in 2020, but low prices and economic uncertainties have triggered job cuts in 2025.
However, the report warns of a deepening skilled labor shortage. Out of 700 energy-related companies, unions, and training institutions surveyed, over half reported critical hiring bottlenecks that threaten to slow the building of energy infrastructure, delay projects, and raise system costs. Applied technical roles such as electricians, pipefitters, line workers, plant operators, and nuclear engineers are in especially short supply, representing over half of the global energy workforce. The aging workforce is intensifying the pressure, with a 2.4:1 ratio of energy workers in advanced economies nearing retirement to new entrants under 25.
To prevent the skills gap from widening further by 2030, the number of new qualified entrants into the energy sector globally would need to rise by 40%. This would require an additional $2.6 billion per year of investment globally, representing less than 0.1% of spending on education worldwide. Policy measures can make a major difference, including targeted financial incentives for learners, expanded apprenticeships, greater private-sector involvement in curriculum design, and investment in training facilities. Reskilling within the energy sector itself is also essential, as some regions already face declines in fossil fuel employment.
