Electricity Sector Surpasses Fossil Fuels in Global Employment Amid Decarbonization Efforts

Global employment in the electricity sector has surpassed that of fossil fuels for the first time, largely due to the rapid growth of photovoltaic solar power. Since 2019, the sector has generated 3.9 million new jobs, accounting for nearly 75 percent of all energy sector employment growth. The surge reflects increased investments in renewable infrastructure and the accelerating transition toward electrification.

In 2024, the energy sector saw a 2.2 percent rise in employment, outpacing the global job growth rate of 1.3 percent. Over the past five years, over 5 million new roles have been created, raising total employment to 76 million. This momentum has more than tripled pre-pandemic growth rates, highlighting the sectors expanding influence and resilience.

Electrification, particularly through solar PV, dominates employment gains, with a focus on technical roles such as electricians, installers, operators, and engineers. These trades have contributed more than 2.5 million jobs since 2019, making them a vital component of the energy workforce. The automotive industry also benefits from electrification, with nearly 800,000 new jobs in electric vehicle manufacturing alone in 2024.

However, industry outlooks suggest a slowdown in growth to around 1.3 percent in 2025, partly due to geopolitical tensions and a persistent labor shortage in skilled technical positions. Many organizations have reported bottlenecks that threaten infrastructure completion timelines and inflate costs. Skill shortages mainly affect roles like electrical installers, plant operators, and engineers, emphasizing the need for expanded training and education programs.

Despite advances in artificial intelligence boosting productivity, its current application remains focused on administrative efficiencies rather than reducing demand for skilled technicians. The industry projects that employment could increase between 3.4 and 4.6 million by 2035, driven mainly by further electrical infrastructure expansion. If global goals include achieving net-zero emissions by 2050, this figure could surge to approximately 15 million jobs, underscoring the sectors pivotal role in decarbonization strategies.

While renewable energy grows rapidly, fossil fuels continue to display resilience. In 2024, coal-related jobs increased notably in countries like India, China, and Indonesia, with global employment in fossil fuels rising 8 percent since 2019. The oil and gas industry also fully recovered from pandemic setbacks, maintaining high wages owing to technical skill requirements. Nuclear energy and fossil fuels still provide some of the highest salaries, with forecasted increases of 3.7 percent and 3.2 percent respectively in 2025, contrasting with smaller increases in renewables.

Overall, the expanding employment landscape in the energy sector signals a significant transition focused on renewable energy and electrification, despite ongoing challenges related to workforce skills, geopolitical tensions, and market resilience of fossil fuels.