A new report from the International Energy Agency (IEA) shows that employment in the global energy sector is expanding at nearly twice the rate of overall economic growth, driven by strong investment in energy infrastructure. According to the World Energy Employment 2025 report, energy sector jobs grew by 2.2% in 2024, compared with slower growth across the wider economy. Global energy employment reached 76 million people last year, up more than 5 million since 2019, with the sector contributing 2.4% of all net jobs created worldwide over the past five years.
The report highlights the power sector as the leading driver of job creation, accounting for three-quarters of recent employment growth and now surpassing fuel supply as the largest employer in the energy industry. Solar PV has been a key growth area, alongside rapid expansion in nuclear power, grid infrastructure, and energy storage. Increasing electrification across other sectors has also created demand for new roles, with employment in electric vehicle manufacturing and battery production increasing by nearly 800,000 in 2024.
Fossil fuel employment has remained resilient despite global shifts. Coal jobs rebounded in India, China, and Indonesia, pushing coal employment 8% above 2019 levels, even as advanced economies saw declines. The oil and gas sector has recovered most of the jobs lost in 2020, though low prices and economic uncertainties in 2025 have led to some workforce reductions. Early data suggests that energy employment growth may moderate to 1.3% in 2025, influenced by tight labour markets and heightened trade and geopolitical challenges.
Despite strong sector performance, the report warns of growing skilled labour shortages that could slow infrastructure development, delay projects, and increase costs. More than half of the 700 energy-related companies, unions, and training institutions surveyed by the IEA reported critical hiring bottlenecks. Applied technical roles—such as electricians, pipefitters, line workers, plant operators, and nuclear engineers—are particularly scarce. These positions have grown by 2.5 million since 2019 and now account for over half of the global energy workforce, more than double their share in the broader economy.
An ageing workforce adds to the pressure, with 2.4 energy workers nearing retirement for every new entrant under 25 in advanced economies. Nuclear and grid-related professions face especially acute demographic challenges, with retirements outpacing new entrants by ratios of 1.7 and 1.4 to 1, respectively. The supply of newly qualified workers is insufficient to meet growing sector demands. To prevent the skills gap from widening by 2030, the number of new qualified entrants would need to increase by 40%, requiring an additional $2.6 billion per year globally—a sum representing less than 0.1% of total global education spending.
The report emphasizes that effective policy measures can make a significant difference. Barriers to energy-related training include high costs, foregone wages, and limited awareness of programs. Recommended solutions include targeted financial incentives, expanded apprenticeships, greater private-sector participation in curriculum design, investment in training facilities, and reskilling within the sector. In regions where fossil fuel employment is declining, targeted retraining could help workers transition to growing parts of the energy system, supporting both energy security and sustainable economic growth.
Fatih Birol, IEA Executive Director, stressed that energy has been one of the most consistent engines of global job creation but warned that this momentum depends on addressing the skills gap. Governments, industry, and training institutions must act together to ensure enough skilled workers are available to build the energy infrastructure required for a sustainable and secure energy future.
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