Energy Efficiency Sector Ranks #1 in Job Growth by DOE

 

UNEP-Green-Economy-employment-energy-550x242

Figure 1:  Projected Job Growth by Sectors – Green Economy Report, 2011 (1)

WASHINGTON – The U.S. Department of Energy today released the agency’s first annual analysis of how changes in America’s energy profile are affecting national employment in multiple energy sectors. By using a combination of existing energy employment data and a new survey of energy sector employers, the inaugural U.S. Energy and Employment Report (USEER) provides a broad view of the national current energy employment landscape.

USEER examines four sectors of the economy — electric power generation and fuels; transmission, wholesale distribution, and storage; energy efficiency; and motor vehicles — which cumulatively account for almost all of the United States’ energy production and distribution system and roughly 70 percent of U.S. energy consumption. By looking at such a wide portion of the energy economy, USEER can provide the public and policy makers with a clearer picture of how changes in energy technology, systems, and usage are affecting the economy and creating or displacing jobs.

Some key findings of the report include:

3.64 million Americans work in traditional energy industries, including production, transmission, distribution, and storage.
Of these, 600,000 employees contribute to the production of low-carbon electricity, including renewable energy, nuclear energy and low emission natural gas.
An additional 1.9 million Americans are employed, in whole or in part, in energy efficiency.
Roughly 30 percent of the 6.8 million employees in the U.S. construction industry work on energy or building energy efficiency projects.

A copy of the full report is available HERE.

The report also found several energy industries with projected increases in new jobs. Responding to the USEER survey of employers, the energy efficiency sector predicted hiring rates of 14 percent in 2016, or almost 260,000 new hires. Projected hiring rates were at 5 percent within the electric power generation and fuels sector, reflecting overall growth despite a loss of employment in 2015 in the oil and natural gas extraction sectors. Transmission, wholesale distribution, and storage firms anticipate 4 percent employment growth in 2016. Solar energy firms predicted 15 percent job growth over the next year.

Yet even as the report found the opportunity for job growth in many energy sectors, over 70 percent of all employers surveyed found it “difficult or very difficult” to hire new employees with needed skills.

“The transformation of our energy system and the growth of energy efficiency technologies are creating opportunities for thousands of new jobs, especially in energy efficiency and solar,” said David Foster, Senior Advisor on Energy and Industrial Policy at the Department of Energy.  “This report gives an important snapshot of energy employment in America, and subsequent reports will provide better information to guide policies and priorities that create new jobs, appropriately train workers, and promote a successful national energy policy.” …” (1)

“…As a rule of thumb, investment in renewable energy and energy efficiency generate about 3 times the amount of jobs that other energy related investments create (gas, oil, coal, nuclear). Average numbers of jobs created per million euro invested (3CSEP):

  • Building retrofits: 17
  • Renewable energy: 15
  • Coal: 7
  • Oil and gas: 5

[…] (2)

poschen_chart2.jpg

Figure 2:  Job Generators Comparison Chart (3)

“[…] While much of the debate on climate change and employment has focused on renewables, another and more significant source of jobs from decarbonization has received much less attention. Substantial efficiency gains are technically feasible and economically viable in industry, housing, transportation, and services. Businesses can make a profit and households can enjoy real savings. And spending the surplus on things other than fossil energy will boost an economy’s employment.

For example, the United States is a diversified economy that imports substantial amounts of equipment for renewables. A recent study carefully considered economy-wide effects of reducing emissions by 40 percent by 2030 through a mix of clean energy and energy efficiency (Pollin and others, 2014). It concluded that $200 billion a year in investment would generate a net gain of about 2.7 million jobs: 4.2 million in environmental goods and service sectors and their supply chains but 1.5 million lost in the shrinking fossil- and energy-intensive sectors. The net gain of 2.7 million jobs would reduce the unemployment rate in the 2030 U.S. labor market by about 1.5 percentage points—for example, from 6.5 percent to 5 percent. The authors consider this a conservative estimate; for example, it does not take into account the 1.2 to 1.8 million jobs likely gained from reinvested savings.

Other studies show similar results. A review of 30 studies covering 15 countries and the European Union as a whole found appreciable actual or potential net gains in employment (Poschen, 2015). Most studies considering emission targets in line with the ambitions announced for a Paris agreement in December find net gains on the order of 0.5 to 2.0 percent of total employment, or 15 million to 60 million additional jobs. In emerging market economies such as Brazil, China, Mauritius, and South Africa, green investment was found to accelerate economic growth and employment generation when compared with business as usual. Several studies suggest that more ambitious climate targets would generate greater gains in employment (for a discussion of particular countries, see Poschen, 2015). […]” (3)

References:

(1)  http://bit.ly/1RsVAdc

(2) http://1.usa.gov/1Tby7lt

(3) http://bit.ly/1RlUaV8

 

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