Energy and Jobs

Jobs are of great importance in any economy. Employment opportunities are a key consideration in planning for a low-carbon economy. Many governments have prioritised renewable energy development, firstly to reduce emissions and meet international climate goals, but also in pursuit of broader socio-economic benefits. As the energy transition accelerates, job gains and losses can be expected as economic structures evolve. Jobs represent a tangible benefit that gives people a stake in this transformation, and therefore promises to raise its political acceptance.

Renewable energy employment worldwide has continued to grow since IRENA initiated its annual review; the first edition of the Review estimated 7.3 million jobs in 2012. The ninth edition of IRENA’s series, Renewable energy and jobs: Annual review 2022, produced in collaboration with the International Labour Organization (ILO), estimates at least 12.7 million jobs in renewable energy employment globally.

The various editions of this report series discuss employment trends by renewable energy technology and by country, and include highlights of important topics such as decentralised solutions or gender. The series also touches upon how employment generation rides on countries’ abilities to build and strengthen domestic supply chains, and some have successfully leveraged local capabilities to that end, with the help of industrial policy measures, labour market policies, and other efforts. The 2022 edition also spotlights issues of job quality and labour standards in the mining and processing of raw materials inputs (upstream) and in the handling of materials once renewable energy generating facilities are decommissioned (downstream).

Key global findings:

• 12.7 million: Worldwide employment in renewable energy in 2021, up from 12 million in 2020. Close to two-thirds of all jobs are in Asia, and China alone accounts for 42% of the global total. It is followed by the European Union and Brazil with 10% each, and the United States and India with 7% each.
• 4.3 million: Jobs in solar photovoltaic (PV) in 2021, the fastest-growing sector, accounting for more than a third of the total renewable energy workforce.
• 1.3 million: Jobs in wind power in 2021. Countries are building the industrial base and infrastructure needed to support growing offshore installations.
• 2.4 million: Direct jobs in hydropower in 2021. Two-thirds of these jobs were in manufacturing, 30% related to construction and installation and about 6% to operation and maintenance.
• 3.4 million: Jobs in bioenergy in 2021. Biofuels account for 2.4 million, with the vast majority in feedstock operations. Biodiesel output and employment are rising while ethanol is ebbing.

• Southeast Asian countries are becoming major solar PV manufacturing hubs and are biofuels producers. China is the pre-eminent manufacturer and installer of solar PV panels and is creating a growing number of jobs in offshore wind. India added more than 10 GW of solar PV, with many installation jobs, but remains heavily dependent on imported panels.
• Europe now accounts for about 40 per cent of the world’s wind manufacturing output and is the most important exporter of wind power equipment; it is trying to reconstitute its solar PV manufacturing industry.
• Africa’s role is still limited, but the report points out that there are growing job opportunities in decentralised renewables, especially in support of local commerce, agriculture, and other economic activities.
• In the Americas, Mexico is the leading supplier of wind turbine blades in the Western Hemisphere. Brazil remains the leading employer in biofuels but is also adding many jobs in wind and solar PV installations. The USA is beginning to build a domestic industrial base for the budding offshore wind sector.

The lingering impact of the COVID-19 crisis has put a spotlight on the viability of far-flung supply chains. Trade disputes and geopolitical rivalries are reinforcing interest in localisation of supply chains, both to enhance resilience in the face of external shocks and to boost domestic value creation and jobs. Numerous countries are adopting a mix of trade measures and industrial policy strategies to build and expand their supply chains. Other key policy objectives include ensuring jobs are decent, and that equal employment opportunities exist for women, youth and minorities.

The continued expansion of decent renewable energy jobs requires a comprehensive approach comprising policies on the deployment, integration and enablement of renewables, as well as industrial policies, education and skills training, labour market measures, diversity and inclusion strategies, and regional revitalisation and social protection measures.

The complete series can be accessed here.