Energy Sector Drives Global Growth Amid Rising Skills Shortages, ETHRWorldSEA
Strong investment in energy infrastructure pushed global energy employment up by 2.2% last year, almost double the rate of job growth across the wider economy, according to the International Energy Agency’s World Energy Employment 2025 report. The findings position the energy sector as one of the most significant sources of new jobs globally, while also flagging mounting risks linked to skills shortages and workforce demographics.
The IEA estimates that the global energy workforce reached 76 million people in 2024, an increase of more than 5 million jobs since 2019. Over the past five years, the sector has accounted for 2.4% of all net job creation worldwide, underlining its growing importance to labour markets.
Job growth has been led by the power sector, which now represents the largest source of employment in energy, overtaking fuel supply. It accounted for around three-quarters of recent employment gains, with solar photovoltaic projects a major driver. Hiring has also accelerated in nuclear energy, electricity grids and storage, reflecting the expanding infrastructure needed to support electrification. This shift is spilling into adjacent industries, with employment in electric vehicle manufacturing and battery production rising by nearly 800,000 jobs in 2024 alone.
Fossil fuel employment remained resilient during the year. Coal jobs rebounded strongly in India, China and Indonesia, leaving global coal employment 8% above 2019 levels despite sharp declines in advanced economies. Oil and gas employment has recovered most of the losses seen in 2020, although early data suggests job cuts in 2025 as companies respond to lower prices and economic uncertainty. Overall, energy employment growth is expected to slow to 1.3% in 2025 as tight labour markets and geopolitical tensions make employers more cautious.
Despite strong hiring, the IEA warns that workforce constraints are becoming a critical bottleneck. More than half of the 700 companies, unions and training institutions surveyed reported severe hiring difficulties, particularly in technical roles such as electricians, pipefitters, line workers, plant operators and nuclear engineers. These roles now make up over half of the global energy workforce.
An ageing workforce is intensifying the challenge, especially in advanced economies, where retirements are outpacing new entrants. Without a sharp increase in training and reskilling, the IEA cautions that labour shortages could slow energy projects, raise costs and weaken energy security in the years ahead.
