Clean Energy Jobs Surge, Unionisation Hits Record High

  • US clean energy jobs surged by 4.2% in 2023, adding 142,000 positions, outpacing the national job growth rate of 2%.
  • Union membership in clean energy reached 12.4%, surpassing the overall energy industry’s rate for the first time, driven by gains in the construction and utility sectors.
  • Jobs in the solar industry grew by 5.3%, while natural gas jobs increased by 13.3%. Conversely, the petroleum industry and coal sectors experienced job losses.

Jobs in the US clean energy sector surged in 2023, with growth outpacing the nation’s overall job rate. The Energy Department’s US Energy and Employment Report, released on August 28, showed a 4.2% increase in clean energy jobs, adding 142,000 positions. This growth rate surpassed the national average of 2% and marked an improvement from the sector’s 3.9% increase in 2022.

Unionisation in the clean energy industry also saw a significant rise, exceeding the broader energy sector for the first time. The report noted that 12.4% of clean energy workers joined unions in 2023, compared to 11% across the entire energy industry. Gains in the construction and utility sectors, driven by legislation like the bipartisan CHIPS Act and President Biden’s Inflation Reduction Act, fueled this union’s growth.

Betony Jones, head of energy jobs at the Energy Department, highlighted the long-term potential of clean energy construction. “Unionised workers might move from project to project, but the continuity of work allows them to build lasting careers,” Jones said. She emphasised that job growth in clean energy infrastructure will likely continue for decades.

The solar industry, including utility-scale and rooftop sectors, grew by 5.3%, adding over 18,000 jobs. However, the solar installation sector in California lost more than 17,000 jobs as high interest rates and changes in California’s net metering policies reduced incentives for rooftop solar installations.

Fossil fuel job growth showed mixed results in 2023. The natural gas sector expanded by 13.3%, adding over 77,000 jobs. In contrast, the petroleum industry lost more than 44,000 jobs, a 6% decline. Coal jobs also dropped, with nearly 8,500 positions lost, or 5.3%, as the energy sector shifted towards cleaner alternatives like gas, wind, and solar.

Despite these positive trends, men dominated the energy workforce, making up 73% of workers in 2023, a figure unchanged from the previous year and significantly higher than the national average of 53%. While women filled about half of the energy jobs added in 2022, their representation dropped to just 17% of new positions in 2023.

White House climate adviser Ali Zaidi emphasised the administration’s commitment to energy and climate security, citing the report as evidence. He pointed to the ongoing efforts to transition the energy sector towards more sustainable and secure sources.

The report highlights rapid growth and significant changes within the clean energy sector. With solid job creation and rising unionization, the industry stands poised to play a critical role in the future US economy, driven by public policy and private investment. However, challenges remain, particularly in ensuring more diverse representation within the workforce and addressing regional disparities, as seen in California’s solar sector. The clean energy industry’s trajectory suggests it will continue influencing job creation and the nation’s energy landscape in the coming years.

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