The energy sector has become a major source of global job creation in recent years, as energy demand and investment in new infrastructure continue to gather pace. But this rapid growth in labour demand is equally putting strain on the supply of skilled workers, creating bottlenecks in the delivery of energy projects and heightening risks to global energy security.
Data from the IEA’s recently published World Energy Employment 2025 report shows that energy employment has risen rapidly in the first half of this decade, outpacing job growth in the wider economy for the last three years running, and reaching nearly double the wider-economy growth rate in 2024. The future outlook for the energy sector points to further expansions in employment demand, with labour needs rising especially quickly in more ambitious transition scenarios.
Much of this job creation has been driven by rising electricity demand, as the world enters the Age of Electricity. The electricity sector has contributed nearly three quarters of all energy job additions since 2019, with solar PV jobs leading the way, alongside grids and nuclear power. This decade, the electricity sector also surpassed fuel supply to become the largest global energy employer.
This rapid growth has increased strains on the supply of skilled labour. New occupational analysis conducted by the IEA indicates that many energy jobs are being created in precisely the types of applied technical roles which are already in shortage in many labour markets, such as electricians, pipefitters, and line workers.
These shortages are already having tangible impacts in the energy sector. Among 700 respondents to the annual IEA Energy Employment survey of employers, educators and trade unions, around 60% of companies reported facing labour shortages, putting timelines, system reliability, and cost control at risk.
The pressures created by the expansion in demand for new workers are being compounded by the ageing of the existing workforce, necessitating additional recruits to replace retiring workers. The challenge is especially acute in advanced economies, where there are 2.4 energy workers nearing retirement for every worker under 25, compared with a ratio of about 1:1 in emerging market and developing economies. These imbalances are set to worsen: between today and 2035, two out of every three new hires will be needed just to replace retiring energy workers.
The European Union is at the frontline of these challenges, as electrification and efficiency measures have contributed nearly a million job additions in the region over the last decade, equivalent to 14% of its current energy workforce. Europe also faces unique challenges from its technology mix, with key subsectors such as nuclear power, offshore wind, and water-based heat pumps requiring especially diverse and stringently regulated skillsets.
Meeting these labour demand challenges depends on a steady inflow of qualified workers, especially from vocational programmes. But IEA analysis has shown that educational capacity has not kept pace with rising skilled labour demand: overall global demand for applied technical workers grew by 16% between 2015 and 2022, yet graduations from relevant vocational qualifications increased by only 9%.
To prevent the skills mismatch from worsening by 2030, the number of vocational graduates entering the energy workforce would need to rise by around 40% globally, and even more in a pathway aligned with net-zero emissions by 2050. Expanding training capacity to this level would cost roughly USD 2.6 billion per year worldwide – less than 0.1% of global public education spending.
Skills needs are also evolving, as the energy sector continues to modernize through new cutting-edge technologies such as batteries and artificial intelligence, and curricula must adapt to keep pace with this change. Collaboration between industry and education providers is essential to ensure alignment, but fewer than 25% of energy firms currently report engaging in such efforts.
Many energy firms are taking advantage of existing skills bases by reskilling their current workforce to prepare for emerging roles. Much skill development in the energy sector is already conducted within firms through on-the-job training, and previous IEA analysis has shown that over 40% of energy firms surveyed prefer to recruit internally to retain sector-specific know-how.
But beyond the provision of education and training, another major challenge is attracting workers to energy qualifications and jobs in the first place. Among responses to the IEA Energy Employment Survey, financial barriers and lack of awareness stood out as key barriers to entry to energy qualifications.
There is also significant scope to attract more women into energy jobs: women currently make up only 20% of the overall energy workforce, and just 5% of applied technical roles in the energy sector. Job quality also remains a key factor. In the IEA Energy Employment Survey, workers and representatives cited pay, job security, and a safe working environment as key factors in the attractiveness of energy jobs.
Policymakers can help to address these issues, and have the tools to do so. Effective policy responses in recent years have included targeted financial incentives, apprenticeships, and campaigns promoting vocational careers in energy. Collaboration among stakeholders across government, industry, education and labour representation is also essential to ensure that workforce needs are understood, educational frameworks are fit for purpose, and the energy sector offers attractive careers.
As energy security moves higher on national agendas, a well-trained workforce is becoming essential to resilient supply chains, new asset deployment, and operational reliability. Co-ordinated action by governments, industry, and labour can prevent skilled labour shortages from becoming a bottleneck, enabling the energy sector to deliver high-quality jobs, boost competitiveness, and support security and sustainability goals.
