Energy sector employment grew in 2017, led by natural gas generation and energy efficiency jobs

Energize Weekly, May 30, 2018

U.S. energy sector employment increased by 2 percent to 6.5 million jobs in 2017. While power generation posted big numbers, energy efficiency and biofuels were the fastest-growing areas, according to a report by the National Association of State Energy Officials.

The U.S. Energy Employment Report, based on federal Bureau of Labor Statistics data and direct surveys, was done in collaboration with Energy Futures Initiative, a non-profit think tank created by former Energy Secretary Ernest Moniz.

The report analyzed four energy sectors: electric power generation and fuels; transmission, distribution and storage; energy efficiency; and motor vehicles.

There was a net total of 133,000 new energy sector jobs in 2017, nearly 7 percent of all new jobs in the nation, with more than half in energy efficiency areas, the report said.

Employer surveys indicate that there will be 6.1 percent growth in energy jobs in 2018, while the forecast is for 9 percent growth in energy efficiency-related jobs.

Another area with a fast growth rate was electric power biomass with 8,000 new jobs, a 55 percent increase. Corn ethanol employment jumped 20 percent, adding 6,000.

The biggest numerical increase in jobs came in natural gas generation with 19,000 additional jobs; combined heat and power added 9,000 positions, a 51 percent increase. Wind saw 5,000 new jobs, a 6 percent increase. Coal generation held steady at 92,000 jobs.

The nuclear sector, however, lost 3,400 jobs, and solar, for the first time since 2010, saw a 6 percent drop in employment losing 24,000 workers—although two-thirds of the job losses occurred in just two states, California and Massachusetts.

Electric power generation and fuels employed more than 1.9 million workers in 2017, up 15,000 from 2016, with 55 percent, or 1.1 million people, working in traditional coal, oil and gas. Almost 800,000 workers were involved in low-carbon emission generation technologies, such as renewables, nuclear and advanced/low-emission natural gas.

Transmission, distribution and storage employed more than 2.3 million people. There were more than 1 million working in retail gasoline stations and fuel dealers. The sector added 3,500 jobs in 2017. Another 869,000 people were working across utilities and construction. This represents a net increase of 50,000 jobs.

Motor vehicles and vehicle parts employed 2.46 million workers, excluding automobile dealerships, adding 29,000 jobs in 2017.

The broad category of energy efficiency, defined as the production or installation of energy-efficient products certified by the federal Environmental Protection Agency’s Energy Star program, had 2.25 million workers in 2017 with a net increase of 67,000 jobs.

Efficiency jobs in construction declined, but jobs in manufacturing, trade and professional services all grew, more than offsetting the decline in construction. Manufacturing jobs were up 9 percent, adding 27,000 jobs, while energy efficiency services added 63,000 jobs.

About 70 percent of employers across these sectors who were surveyed reported difficulty hiring qualified workers over the last 12 months, a decline of 3 percentage points from 2016. Twenty-six percent continued to note it was “very difficult.”

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