Mercedes Mullins
Fossil fuels have long been the norm, with the industry providing millions of jobs worldwide. In 2019, the energy sector employed over 65 million people worldwide, with fossil fuel jobs accounting for almost 32 million of those positions. However, the transition to cleaner energy sources and the focus on renewable energy have impacted the number of jobs available in the fossil fuel industry. While fossil fuel jobs are still recovering slowly after the COVID-19 pandemic, clean energy employment has been growing more rapidly and now employs more workers than fossil fuels. This shift towards renewable energy sources has led to a decline in fossil fuel jobs, and it is projected that these jobs will continue to decrease as the world moves towards carbon neutrality.
| Characteristics | Values |
|---|---|
| Number of jobs in the fossil fuel industry worldwide | 32 million |
| Percentage of energy workers in high-skilled occupations | 45% |
| Number of jobs in the fossil fuel industry in the US | 9.8 million |
| Number of jobs in the fossil fuel industry projected in the future | 3.1 million |
| Percentage of job losses relating to oil, gas, and coal extraction | 80% |
| Percentage of China's energy workforce employed in clean energy sectors | 60% |
| Number of jobs in the energy sector in 2019 | Over 65 million |
| Number of jobs in the energy sector in 2022 | 67 million |
| Number of clean energy jobs added globally between 2019 and 2022 | 4.7 million |
| Number of fossil fuel jobs in 2022 | 32 million |
| Number of new clean energy jobs to be added worldwide by 2030 | 8 million |
| Number of projected fossil fuel jobs by 2030 | 2.5 million |
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What You'll Learn
- Fossil fuel jobs declining, clean energy jobs on the rise
- Fossil fuel workers can transition to the clean energy sector
- Fossil fuel jobs account for 5.6% of total US employment
- China's energy workforce is reorienting towards clean energy
- Fossil fuel jobs rooted in stability, but renewable energy jobs are the future
Fossil fuel jobs declining, clean energy jobs on the rise
The energy sector employed over 65 million people in 2019, with roughly 21 million in fuel supply, 20 million in the power sector, and 24 million in end uses. Fossil fuels employed almost 32 million people globally in 2022, according to the International Energy Agency (IEA). However, the IEA also reported that clean energy employment is growing faster than fossil fuel jobs and accounted for the majority of the 67 million jobs in the energy sector in 2022. The clean energy sector added 4.7 million jobs globally from pre-pandemic levels, reaching 35 million, while fossil fuel jobs are still about 1.3 million below pre-pandemic employment levels, at 32 million. Overall, clean energy sector jobs increased by 5%, while fossil fuel-related employment decreased by 4% between 2019 and 2022.
The growth in clean energy jobs is driven by several sectors, including solar photovoltaic (PV), wind, electric vehicles (EVs), battery manufacturing, heat pumps, and critical minerals mining. The transition to clean energy is particularly evident in China, which has nearly 30% of the global energy workforce. China witnessed a significant rebalancing between 2019 and 2022, with clean energy jobs growing by 2 million and fossil fuel-related jobs decreasing by 600,000, mainly in coal. Today, 60% of China's energy workforce is employed in clean sectors. Other regions, such as Indonesia, India, and the Middle East, also experienced an uptick in fossil fuel employment over 2019 levels.
The shift towards clean energy is creating new job opportunities and addressing labour shortages. The IEA estimates that half of the workers in the fossil fuel sector facing redundancy risks have skills demanded by the growing clean energy sectors. With as little as four weeks of retraining, many fossil fuel workers can transition to roles in heat pumps and electric vehicles (EVs). Additionally, the push for net-zero emissions and the increasing requirements for utilities to use renewable power further contribute to the rise in clean energy jobs.
While the clean energy industry expands, it is important to ensure equitable job opportunities and support workers transitioning from fossil fuel-dependent communities. Strong labour standards, prevailing wage guarantees, and investments in these communities can help workers build stable careers in the new energy economy. Established industries like nuclear, oil, and gas typically offer higher wages than newer segments like solar, which lack comparable labour protections and union representation. Addressing skills shortages and providing retraining opportunities for workers in declining fossil fuel sectors are crucial to facilitating a smooth transition to clean energy.
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Fossil fuel workers can transition to the clean energy sector
Fossil fuels currently employ almost 32 million people worldwide. However, the transition to cleaner forms of energy is causing a decline in fossil fuel jobs. This shift is driven by efforts to integrate climate priorities into policy, the rise of low-cost renewable energy, and investor concerns about financial risk.
The good news is that fossil fuel workers possess many transferable skills that are highly valued in the clean energy sector. Firstly, it is important to note that energy employment is set to grow, and this growth will outweigh the decline in fossil fuel jobs. By 2030, an estimated 14 million new clean energy jobs will be created, and another 16 million workers will shift to new roles related to clean energy.
Workers in the fossil fuel industry, particularly in coal, already possess many of the skills needed for the growing clean energy sectors. For example, over half of energy employment is in the Asia Pacific region, where the rapid expansion of clean energy infrastructure is driving the demand for talent. China alone accounts for almost 30% of the global energy workforce.
To aid the transition, several initiatives and policies have been implemented. Some companies are transferring their workers to low-carbon segments internally, allowing for flexibility and talent retention. Additionally, governments and organizations worldwide are launching "just transition" initiatives to support workers impacted by the energy transition. For example, the EU has established a Just Transition Mechanism to direct approximately $183 billion to fossil fuel and carbon-intensive regions affected by the shift to clean energy. Similarly, in the United States, states like Colorado and New Mexico have taken the lead in establishing just transition offices and committees, and there have been efforts to secure funding for impacted coal communities.
However, challenges remain, particularly regarding occupational licenses and varying skill requirements. To address these challenges, comprehensive federal just transition policies are needed, along with increased funding for workforce training programs, relocation assistance, and other supportive measures.
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Fossil fuel jobs account for 5.6% of total US employment
Fossil fuels have been the norm for as long as we can remember, with millions of jobs worldwide in the sector. The fossil fuel industry currently supports 9.8 million jobs, which is around 5.6% of total US employment. This has meant that a career in fossil fuels has always been considered reliable. However, with the shift to meet carbon neutral targets, fossil fuel jobs are projected to decrease to 3.1 million, with 80% of these job losses relating to oil, gas, and coal extraction.
The decline in fossil fuel jobs is attributed to the transition to cleaner energy sources and the focus on renewable energy. This shift is also expected to impact related industries such as construction and extraction occupations, which account for more than 40% of the total fossil fuel industry jobs. While there are concerns about job losses, it's important to note that workers in the fossil fuel industry possess transferable skills that can be utilized in the renewable energy sector.
For example, electricians, mechanics, and welders with experience in fossil fuels will be integral to sectors like solar energy. Additionally, the renewable energy sector is expected to offer higher wages and better benefits than fossil fuel jobs. The transition to clean energy is creating new job opportunities, with an estimated 14 million new clean energy jobs expected to be created by 2030, and another 16 million workers expected to shift to new roles related to clean energy.
While the Asia Pacific region, led by China, accounts for over half of energy employment, North America and Europe also contribute significantly to the global energy workforce, particularly in oil and gas. The energy sector employed over 65 million people in 2019, equivalent to around 2% of global employment. Fossil fuels alone employed almost 32 million people globally in 2022. As the energy sector continues to grow, strategic planning is essential to ensure enough skilled workers are available to meet the demand for new energy innovations.
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China's energy workforce is reorienting towards clean energy
Fossil fuels currently employ almost 32 million people globally, with the energy sector employing over 65 million people in 2019. However, China's energy workforce is reorienting towards clean energy, and the country is poised to become a formidable player in the global clean energy race. China has invested significantly in clean energy research and development, with a coordinated effort from the government, private sector, and engineering industries. This has resulted in a boom in renewable technologies, particularly in solar and wind capacity, as well as battery storage and green hydrogen. China's renewable energy sector has achieved remarkable growth, with the country now holding more than 80% of the world's solar manufacturing capacity. This has driven down prices and made renewable energy systems more accessible to poorer countries.
China's clean energy success can be attributed to its ability to cluster manufacturing and innovation. For example, in the car battery business, it is much more cost-effective to build a battery factory in China than in the United States. This has allowed Chinese companies to dominate the market for electric vehicle batteries, with a global market share of 60% and growing exports. China's state-owned utility companies have also planned to build over 200 clean energy bases in the western desert regions, taking advantage of high solar radiation and abundant land. These bases will combine solar arrays and wind farms, connected to eastern China's markets through high-speed transmission lines.
China's commitment to clean energy is also evident in its plans to improve rural grid transmission and allow village collectives to invest in distributed renewable power. Additionally, China is taking a leading role in developing and implementing green technologies to future-proof the global energy system. The country spent more than twice as much on its green transition in 2023 as any other country, solidifying its position as a global powerhouse in clean energy production. China's enterprises are actively working towards ambitious carbon targets, and their efforts are making it easier for other countries to tackle their emission-cutting targets.
China's reorientation towards clean energy is not without challenges, as the country still generates about 70% of its electricity from fossil fuels. However, China's leadership recognizes the negative diplomatic and environmental impacts of being the world's worst polluter. Through strategic investments and reforms, China aims to enhance its position as a global leader in renewable energy and improve its clean energy utilization. China's transition to clean energy is a significant step in the global effort to combat climate change, and its impact is being felt worldwide, from lighting rural communities in Zimbabwe to supplying solar equipment to New Zealand.
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Fossil fuel jobs rooted in stability, but renewable energy jobs are the future
Fossil fuel jobs have traditionally been stable and secure, with millions of jobs worldwide in the sector. In 2019, the energy sector employed over 65 million people worldwide, with fossil fuel jobs accounting for a significant portion of this number. However, the shift to cleaner energy sources and the focus on meeting carbon neutral targets have changed the landscape. Fossil fuel jobs are now in decline, with a projected loss of 2.5 million jobs by 2030. This is due to a combination of factors, including the rise of clean energy sectors and the slow recovery of fossil fuel industries from the layoffs caused by the Covid-19 pandemic.
Despite the overall decline in fossil fuel jobs, there are still millions of people employed in the industry worldwide. In 2023, fossil fuel jobs are estimated to be around 32 million, with a resurgence in new oil and gas projects due to the energy crisis. However, this is still below pre-pandemic employment levels, and the long-term trend indicates a shift away from fossil fuels.
Clean energy employment, on the other hand, is experiencing rapid growth. In 2022, clean energy sectors added 4.7 million jobs globally, and now employ over 35 million people. This growth is driven by sectors such as solar PV, wind, electric vehicles (EVs), battery manufacturing, heat pumps, and critical minerals mining. China, in particular, has undergone a significant reorientation toward clean energy, with 60% of its energy workforce now employed in clean sectors.
The transition to clean energy presents both challenges and opportunities for the workforce. While there are skilled labour shortages in the clean energy sector, many fossil fuel workers possess transferable skills and specializations that are in demand. With short periods of retraining, fossil fuel workers can transition to clean energy roles. For example, workers in fossil fuel heating units can shift to heat pump systems, and auto workers can move from internal combustion engine manufacturing to electric vehicles (EVs).
As the world moves towards a cleaner and more sustainable future, the renewable energy sector offers new career opportunities. Jobs in renewable energy may be easier to obtain, provide faster career progression, and offer higher wages compared to the declining fossil fuel industry. This transition can be facilitated by strategic planning, training, and certification, ensuring that the energy sector remains a significant source of global employment while meeting the demands of a changing energy landscape.
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Frequently asked questions
As of 2023, the fossil fuel industry employs almost 32 million people worldwide. However, this number is expected to decline as the world transitions to cleaner energy sources.
Clean energy employment has been growing more rapidly than fossil fuel jobs. In 2021, clean energy employment surpassed fossil fuel jobs for the first time. As of 2022, clean energy jobs account for the majority of jobs in the energy sector, with over 35 million jobs globally.
The shift towards clean energy sources and the need to meet carbon neutral targets are expected to result in a decline in fossil fuel jobs. However, many workers in the fossil fuel industry have transferable skills and specializations that are in demand in the clean energy sector. Retraining and talent retention programs can help workers transition to new roles in growing clean energy sectors.
