RIYADH: The global energy sector saw a 3.8 percent increase in jobs in 2023, reaching 68 million, according to an analysis by the International Energy Agency (IEA).
The IEA's latest report revealed that the sector added 2.5 million jobs worldwide in 2023, largely driven by investments in eco-friendly technologies. This surge in employment coincided with the COP29 summit in Baku, Azerbaijan, where international leaders are discussing ways to boost renewable energy growth to address climate issues.
During the COP29 opening ceremony on November 11, Simon Stiell, the UN Framework Convention on Climate Change's executive secretary, highlighted the growth of the renewable sector, noting that clean energy infrastructure investments are projected to hit $2 trillion in 2024, nearly double that of fossil fuels.
"The global energy sector has been a significant driver of job growth worldwide," said Laura Cozzi, IEA's Director of Sustainability, Technology, and Outlooks. "As the energy system continues to evolve, the demand for skilled workers will only increase."
The clean energy sector led the job growth, adding 1.5 million positions in 2023. The solar PV industry alone created over half a million new jobs, while electric vehicle manufacturing and battery sectors grew by 410,000 jobs as EV sales reached nearly 20 percent of the global car market.
Despite layoffs in the wind energy sector due to rising costs, overall employment in the sector still increased as new projects commenced. Oil and gas supply jobs rose by 3 percent, or 600,000, while global coal employment declined for the third consecutive year.
Skill shortages remain a significant concern, with over 190 energy employers across 27 countries reporting difficulties in finding qualified applicants. The IEA emphasized the need for collaboration between governments, the private sector, and educational institutions to address this issue.
Wages in the energy sector are also on the rise, particularly in clean energy roles, as companies compete for skilled workers. The IEA predicts that energy sector employment will grow by 3 percent in 2024, though this growth is expected to slow compared to 2023 due to tight labor markets and changes in energy project pipelines.
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