A major new report has sounded the alarm, warning that job creation in the global renewable energy sector is failing to keep pace with the rapid installation of clean power infrastructure. The study, jointly released by the International Labour Organisation (ILO) and the International Renewable Energy Agency (IRENA), calls for stronger public intervention to build robust domestic supply chains and cultivate a more inclusive workforce.
Slowing Job Growth Amidst Deployment Boom
The 'Renewable Energy and Jobs – Annual Review 2025' found that while renewable energy installations reached a new record high, employment in the sector saw only a modest increase. Jobs grew by just 2.3 per cent from 2023, reaching 16.6 million globally in 2024. This slowdown is attributed to several key factors.
Economies of scale, increasing automation, and other technological innovations are reducing labour needs in some areas. Furthermore, excess manufacturing capacity for equipment and persistent bottlenecks in electricity grids, which lead to curtailment of generated power, are also moderating employment growth. The report also highlights the growing impact of geopolitical tensions and geoeconomic frictions on the sector's labour market.
Global Leaders and Laggards in Renewable Employment
The report provides a detailed breakdown of where these jobs are concentrated. China remains the undisputed leader, accounting for an estimated 7.3 million renewable energy jobs in 2024, or 44 per cent of the global total. The European Union maintained its 2023 level of 1.8 million jobs.
Brazil followed with a significant 1.4 million jobs in renewables. However, growth in other major economies was sluggish. Employment in India and the United States saw minimal expansion, moving from around 1 million to approximately 1.3 million and 1.1 million jobs, respectively.
A Call for People-Centred Policies and Inclusive Action
Commenting on the findings, IRENA's Director-General, Francesco La Camera, stressed that the human dimension of the energy transition is as critical as the technological one. He urged governments to place people at the heart of their climate and energy goals. This requires trade and industrial policies that spur investment, build local capacity, and develop skilled workers across the entire supply chain.
La Camera emphasised the need for international support for countries lagging in the transition. He stated this is essential not only to achieve the global goal of tripling renewable power capacity by 2030 but also to ensure that socio-economic benefits are widely felt, thereby strengthening public backing for the shift to clean energy.
ILO Director-General Gilbert Houngbo focused on the principles of a just transition. "A just transition to a renewables-based future must be grounded in inclusion, dignity, and equal opportunity," he said. He called for proactive measures to ensure persons with disabilities are not left behind, requiring accessible training, inclusive hiring practices, and accommodating workplaces.
Houngbo argued that removing barriers to equality and promoting decent work will strengthen economies and make the energy transition work for everyone. He pointed to the necessity of sustained policy frameworks that include accessible education, labour market services, and the active involvement of all stakeholders, especially marginalised groups.
"Continued growth in renewable energy deployment will keep adding to employment in the sector. This means that education and training need to be a key component of a comprehensive policy approach," Houngbo concluded, linking workforce development to deployment support, finance, industrial policy, and economic revitalisation.
