- Global employment in the energy sector is expanding at nearly twice the pace of the wider economy, but mounting shortages of skilled labour could slow future progress, according to a new report released Thursday by the International Energy Agency (IEA).
The World Energy Employment 2025 report finds that energy jobs grew by 2.2% last year, driven by strong investment in power systems and clean technologies. Total employment in the sector reached 76 million people in 2024, an increase of more than 5 million since 2019, accounting for 2.4% of all net jobs created globally over the past five years.
The power sector is now the largest employer in global energy, overtaking fuel supply. It was responsible for three-quarters of recent job growth, boosted by surging demand for solar PV, expanded hiring in nuclear power, grid upgrades, and storage projects. Employment linked to electrification is also accelerating, with jobs in electric vehicle and battery manufacturing rising by nearly 800,000 in 2024.
Fossil fuel sectors showed mixed trends. Coal employment rebounded in India, China and Indonesia, lifting global coal jobs 8% above 2019 levels despite continued declines in advanced economies. Oil and gas employment has mostly recovered from the pandemic-era slump, although low prices and economic uncertainty have prompted new job cuts in 2025. Overall energy job growth is expected to slow to 1.3% this year amid tighter labour markets and geopolitical tensions that are making firms more cautious.
Despite the sector’s strong performance, the IEA warns that labour constraints are becoming a critical threat. More than half of the 700 companies, unions and training institutions surveyed reported major hiring bottlenecks that could delay infrastructure projects, increase system costs and hinder progress toward energy goals.
“Energy has been one of the strongest and most consistent engines of job creation in the global economy during a period marked by significant uncertainties,” said IEA Executive Director Fatih Birol. “But this momentum cannot be taken for granted. The world’s ability to build the energy infrastructure it needs depends on having enough skilled workers in place.”
Technical roles, including electricians, pipefitters, line workers, plant operators and nuclear engineers, are in particularly short supply. These roles have added 2.5 million jobs since 2019 and now make up more than half of the global energy workforce, more than double their share in the overall labour market.
Demographic pressures are compounding the challenge. In advanced economies, 2.4 energy workers are nearing retirement for every new entrant under age 25. Nuclear and grid-related professions face some of the steepest gaps, with retirements outpacing new entrants by ratios of 1.7 to 1 and 1.4 to 1 respectively.
To prevent shortages from worsening by 2030, the number of newly qualified workers entering the energy sector each year would need to rise by 40%. Achieving this would require an additional $2.6 billion in annual global training investment, less than 0.1% of worldwide education spending.
The IEA notes that policy interventions could significantly alleviate the strain. Key barriers to enrolment in energy-related training include cost, lost wages and limited awareness. Effective solutions include targeted financial incentives, expanded apprenticeships, greater involvement from industry in designing curricula, improved training facilities and reskilling programmes to help fossil fuel workers transition into growing parts of the energy system.
Without swift action, the report concludes, labour shortages could undermine energy security, weaken economic competitiveness and slow the transition to cleaner, more resilient infrastructure.
Author: Bryan Groenendaal
