The shift towards global net zero emissions, targeted by many developed and developing nations, will have a serious impact on virtually every facet of modern society. One of the possible impacts and a significant current concern is the changes that might occur to the job market.
The major concern about traditional fossil fuels eventually becoming history is in relation to the people involved in a sector that is expected to experience a reduction of 5 million jobs by the year 2030. Conversely, this shift will be counterbalanced by an increase in employment opportunities in the renewable energy sector which is expected to grow thereby potentially mitigating the impact of job losses in mining and other industries that are connected to fossil fuel.
One forecast suggests that the transition will generate 30 million jobs, with 14 million employment opportunities within the energy supply sector and another 16 million jobs in the renewable energy sector which includes the automotive and construction industries.
Where does the energy industry stand today?
By the end of 2024, the world’s energy consumption is expected to increase by 1.8%, mostly due to high demand in Asia. The demand for fossil fuels will hit historic highs despite persistently high costs and unresolved supply chain issues. At the same time, the demand for green energy will increase by 11%.
According to the International Renewable Energy Agency (IRENA) 2023 report, investments in renewable energy registered an impressive 43% increase in value between 2020 and 2022, from US$348 billion to almost US$500 billion.
However, the energy problems arising from the conflict between Russia and Ukraine, which resulted in increasing energy prices and disruptions across the globe, has focused attention to issues concerning access to energy and the cost of energy.
The conflict continues to be the cause of significant shifts in the international energy market, with energy security becoming a top priority for countries while the transition to renewables seems to have become delayed. Giving priority to energy security over net-zero goals will slow down the transition due to various factors such as a dependence on fossil fuels, geopolitical concerns, and technological obstacles.
The shift towards renewables and the changes in the global energy sector will not be possible without skill development and training which will enable a smoother energy transition.
Data presented by the International Labour Organization and IRENA shows that in 2022, over 13 million people were working in the renewable energy sector around the world, an increase of 7.3 million from 2012.
Many workers in today’s energy sector have sufficient skills and expertise to be employed in various segments of the renewable industry, including solar and wind energy, hydropower, and decarbonization. Moreover, to upskill their employees, businesses are making more investments in AI-focused training programs.
The sector with the greatest potential for jobs in renewable energy is still solar energy. In 2022, it employed nearly 4.9 million people or over a third of all workers in the renewable energy industry.
Aid programs in the energy sector: Job opportunities on the DevelopmentAid platform
The number of job opportunities in the energy sector is constantly increasing. According to DevelopmentAid’s database, in 2021, there were over 800 job postings for vacant positions in development programs within the energy sector. In the following year, this figure increased by over 100% to reach more than 1,900 open positions. In 2023, the growth continued with the number of jobs in the energy industry exceeding 2,100.
Moreover, there were nearly 1,700 positions with contracts extending over 12 months and over 200 permanent positions.
On the DevelopmentAid platform, you can find positions in the energy sector on almost every continent. Some of the countries and regions with the highest number of job postings included the USA, the EU (Germany, France, Belgium and others), the UK, Asia (with a high number being in India, Indonesia, and Vietnam), Africa (Kenya, Zambia, and South Africa) and Australia.
If you want to check out jobs in the energy sector available today, visit DevelopmentAid – the largest database in international development.
Job opportunities in the energy sector: What does the future hold?
The shift to carbon-free power generation is opening up a new, vibrant labor market that boasts well-paid and fulfilling employment opportunities.
The last ten years have seen a tremendous expansion in the fusion energy industry which is well-positioned to contribute to the world’s energy shift to net zero. This industry has shown an increase in demand for qualified experts such as plasma physicists, materials scientists, technicians, financial analysts, and project managers among others.
Moreover, complex computational modeling and analysis are key to fusion development which means that some of the most sought-after skills will include coding, computational physics, and data analysis.
Furthermore, the growth in the fusion industry will lead to the development of related market sectors, including robotics whereby smart machines will assist in providing reactor maintenance services, and data analytics to improve performance.
Final word
Numerous countries have committed to reach net zero emissions by 2050 but, to meet these challenging goals, 14 million new jobs will need to be created, and about five million employees will be forced to leave the fossil fuel industry.
Considering the multitude of new positions expected to arise, HR experts must understand how to upskill employees for their company to remain competitive.
