Does Renewable Energy Create More Jobs Than Fossil Fuels?

Below, we look at different metrics to analyse whether renewable energy sources might create more jobs than fossil fuel energy sources.

We look at employment on a global level, as well as in individual countries.

We also break both renewable energy and fossil fuel energy into their individual energy sources.

At the bottom of the guide, we briefly cover nuclear energy employment too.

 

Summary – Jobs Created By Renewable Energy vs Fossil Fuels

How Many People Renewable Energy & Fossil Fuels Employ – Globally

Right now, the total number of people employed in the global coal mining industry may not be much less than the total number of jobs in the global renewable energy industry

It might be reasonable to assume then that the total number of people employed across all three of coal, oil and natural gas might be greater than the total number of people employed in renewable energy right now

 

How Many People Each Renewable Energy Source Employs Globally

Solar PV might provide the most jobs in renewable energy worldwide 

One report indicates that a major reason for this might be the labor intensity of solar PV compared to other energy sources

 

Renewable Energy vs Fossil Fuels Employment – United States

In the US, fossil fuels account for a greater share of energy industry jobs than renewable energy does right now

Oil provides the greatest total number of jobs, followed by natural gas

Solar is in third when comparing all energy sources, and provides more total jobs than coal

The number of jobs in renewable energy and also fossil fuels can also differ between the individual US States – some States like California may have more jobs per capita than others

 

Renewable Energy vs Fossil Fuels Employment – China

A large % share of the world’s renewable energy jobs appear to be in China to the extent that China is the leading clean energy employer in the world

It appears that over the last decade or so, total coal sector jobs have decreased in China

 

Which Countries & Regions Provide The Most Jobs In Renewable Energy?

China by far provides the most ‘clean energy’ jobs of any country in the world

Asia is the region that provides the most renewable energy jobs worldwide

Africa as a region might currently have limited employment available in renewable energy (but there might be growth potential)

 

Recent Trends In Renewable Energy Employment – Growth, & Decline

Over recent multi year spans, there’s generally been a significant job growth % in renewable energy

Over the course of one year though, some renewable energy sources can show an increase in employment, whilst others can show a decline

 

Does Renewable Energy Create More Jobs Than Fossil Fuels?

Below, we outline different metrics for measuring which energy source creates more jobs.

Those are:

– Jobs created in general

– Jobs created per dollar invested

– Jobs created per unit of energy delivered, or unit of electricity generated

 

Generally, renewable energy might create more jobs than fossil fuels across each metric.

The labor intensity of some renewables may contribute to this.

However, one report lists the complications of calculating which energy source truly creates the most jobs.

The cost to deliver each energy sources as a service (capital costs, labor costs, etc), and the external environment and social costs of each energy source would have to be calculated and included in final figures.

 

How Some Renewable Energy Jobs May Differ To Some Fossil Fuel Jobs

In general, some renewable energy jobs like solar and wind may be more labor intensive

Some fossil fuel jobs may be more capital intensive (and mechanised)

One report indicates that the quality of renewable energy jobs may also be higher with better pay than some fossil fuel jobs

 

Will Renewable Energy Lead To More Jobs In The Future? And If So, How Many?

There are several reports that indicate that total jobs in renewable energy (and wind energy specifically) will increase through to 2030 and 2050 with increased installed capacity of renewable energy 

Total installed capacity of, and investment in renewable energy is certainty projected to grow into the future across many countries, so it makes sense that there will be job growth too

It may depend though on which States or regions of a country invest in renewable energy

With increased use of renewable energy sources in the future, some types of jobs may se a reduction in job totals, while some types of jobs (like wind turbine technicians) may increase in total

Renewable energy job totals may ultimately follow investment in, installed capacity of, and energy use of renewable energy sources

 

What About Nuclear Energy? How Many Jobs Does Nuclear Energy Create? – United States

At least in the US, it appears as though the number of people that the nuclear energy employs compares favourably to other energy sources

Although, it depends on whether secondary jobs are included in that total or not

 

Other Notes On Energy Sector Employment

We include other notes and considerations about employment in the energy sector at the bottom of this guide

 

How Many People Renewable Energy & Fossil Fuels Employ – Globally

It can be challenging to get ‘all in one’ statistics for global fossil fuel job totals for oil, gas and coal

Below, we did however find statistics for just the coal mining industry

The global coal mining industry alone though appears to employ almost as many people as there are total jobs in the entire global renewable energy industry

It might then be reasonable to assume that when adding up all jobs across the coal, oil and natural gas industries, that total fossil fuel industry jobs might currently be greater than total renewable energy industry jobs

 

Global Coal Mining Employment

[In 2018, the global coal mining industry employed 8,650,211 people] (ibisworld.com)

 

Global Renewable Energy Employment

– Total

[There were 10.34 million jobs in 2017 in renewable energy worldwide] (irena.org)

 

2016 renewable energy employment numbers by energy source can be seen at insideclimatenews.org

 

How Many People Each Renewable Energy Source Employs – Globally

From the figures below, solar PV provides the most total jobs in renewable energy worldwide

Bioenergy is not far behind solar PV in second

Large hydropower is a distant third behind these two energy sources

One report indicates that the labor intensity of solar PV as an energy source compared to other renewable energy sources is a reason for it being a renewable energy job leader

But, bioenergy is also very labor intensive according to another report

Hydro power might have limited operational work required once projects are set up

 

All Renewable Energy Sources

irena.org breaks down how many people are employed in each renewable energy source, across the 10.34 million jobs worldwide in renewable energy in 2017.

Paraphrased and summarised, that breakdown by renewable energy source is:

[Solar PV provides 3.37 million jobs (of the total 10.34 million jobs)]

[Bioenergy provides 3.06 million jobs]

[Large hydropower provides 1.51 million jobs]

[Wind energy employs 1.15 million jobs]

[Solar heating and cooling employs 0.81 million jobs]

[Geothermal, CSP, heat pumps, waste energy, ocean energy, small hydro, and ‘other’ renewable energy sources provides 0.45 million jobs]

 

Bioenergy Specifically

Among all renewable sources of energy, bioenergy arguably has the most lasting influence, locally and regionally [and] This could be due to the fact that the fuel is created, prepared and transported within a small area [along with it being] extremely labor-intensive (business.com)

 

Wind Specifically

[Some data suggests] that three to four indirect jobs were generated for every person employed directly within the wind industry (business.com)

 

Hydro Power & Wind Specifically

From business.com:

Hydropower and wind power constructions create most jobs during the project development and construction phase

[For hydro] After the system is completed and commissioned, only a few personnel are required to carry out the limited operational work 

 

Solar PV vs Wind Energy Specifically

From vox.com:

Solar PV … accounts for the bulk of the world’s renewable energy jobs, despite being a minority of renewable energy capacity.

[One reason for this might be that] Solar PV is very labor-intensive

Wind, which leads solar in capacity, creates far fewer jobs.

 

Renewable Energy vs Fossil Fuels Employment – United States

In the United States …

 

Fossil Fuels

Fossil fuels make up over 50% of energy industry jobs

Of the different fossil fuels, oil provides the most jobs, followed by natural gas

 

56% of energy industry jobs involved in power creation stemmed from oil, natural gas, and coal … (scottmadden.com)

 

Also from scottmadden.com:

[In the US in 2016, of a total 1.9 million jobs in power creation, the following energy sources provided the following number of jobs:]

Oil – 515,518

Natural Gas – 398,235

Coal – 160,119

 

Renewable Energy

Of the different renewable energy sources, solar provides the most jobs by a significant margin

Solar provides significantly more jobs than coal right now, and provides a similar number of jobs as natural gas does based on 2016 data

 

From scottmadden.com:

[In the US in 2016, of a total 1.9 million jobs in power creation, the following energy sources provided the following number of jobs:]

Solar – 373,807

Bioenergy – 130,677

Wind – 101,738

[This was followed by Nuclear at 76,771, Hydroelectric at 65,554, and Geothermal behind them]

 

2016 US renewable energy employment numbers by energy source can also be viewed at insideclimatenews.org

 

State Based Renewable Energy Trends In The US

Separate to national jobs, some States in the US may offer more ‘clean energy’ jobs in total than other States, and, there may be more of these jobs than fossil fuel jobs

States having government policy that is pro ‘clean energy’, and States that invest more money into clean energy as well as use more of it, may experience greater job totals in the renewable energy industry

 

From insideclimatenews.org:

Ten of the 12 states in the US MidWest have more rural clean energy jobs than rural fossil fuel jobs

… although, this also includes [various] energy efficiency areas [too, and not just renewable energy sources themselves] …

 

From scottmadden.com:

California, a state with robust renewable energy standards and installation incentives, had the highest rate of solar power jobs per capita [where …] In 2016, roughly 84 of every 10,000 workers in the state held full- or part-time jobs in solar.

Nevada came in a close second, followed by Hawaii, Vermont, and Massachusetts.

 

Renewable Energy vs Fossil Fuels Employment – China

A large % share of the world’s renewable energy jobs appear to be in China to the extent that China is the leading clean energy employer in the world

In particular, much of the world’s hydropower, solar, and also wind power jobs appear to be in China

It appears that over the last decade or so, total coal sector jobs have decreased in China

 

Renewables

[43% of the 10.3 million jobs in 2017 in renewable energy worldwide were in China]

[China has 83% of worldwide solar heating and cooling jobs, 66% of the solar photovoltaic (PV) sector jobs, 44% in wind power]

– irena.org

 

[China is] the world leader in clean energy employment by far with nearly 4 million jobs, including hydropower [in 2016] (insideclimatenews.org)

 

Fossil Fuels

… by 2020 the coal sector will employ less than three million people, down from 5.29 million in 2013 (globalresearch.ca)

 

Other reports also indicate that China has either reallocated or cut jobs in the coal and steel (steel and cement production both use coal) industries during different periods in the past

 

Which Countries & Regions Provide The Most Jobs In Renewable Energy?

insideclimatenews.org indicates that (paraphrased) China by far provides the most ‘clean energy’ jobs of any country in the world

Asia is the region that provides the most renewable energy jobs worldwide

Africa as a region might currently have limited employment available in renewable energy

 

Countries & Regions That Provide The Most Renewable Energy Jobs

– Countries

[In 2017 … China, Brazil, the United States, India, Germany and Japan remained the world’s biggest renewable energy employers, representing more than 70% of such jobs] (irena.org)

 

Paraphrased, insideclimatenews.org indicates that China is the world leader in clean energy employment, having more jobs than all three of the US, Europe, and Brazil

The US has less renewable energy jobs than both Europe, and also Brazil

 

– Regions

Four-fifths of all renewable energy jobs in 2017 were in Asia (irena.org)

 

Regions With Limited Renewable Energy Jobs

Employment remains limited in Africa, but the potential for off-grid jobs is high (irena.org)

 

Recent Trends In Renewable Energy Employment – Growth, & Decline

Over recent multi year spans, renewable energy has generally seen a significant job growth %

Over the course of one year though, some renewable energy sources can show an increase in employment, whilst others can show a decline

 

All Renewable Energy

From irena.org:

[From 2012 to 2017, there has been a 1.5 times job growth in renewables]

 

Renewable Energy Employment Growth

From irena.org:

[Solar PV job growth was 9% from 2016 to 2017]

[Biofuels job growth was 12% from 2016 to 2017]

 

Renewable Energy Employment Decline

From irena.org:

[Other renewables like solar heating and cooling and wind power have declined in some one year spans]

 

Does Renewable Energy Create More Jobs Than Fossil Fuels?

Below, we outline different metrics for measuring which energy source creates more jobs.

Those are:

– Jobs created in general

– Jobs created per dollar invested

– Jobs created per unit of energy delivered, or unit of electricity generated

 

Jobs Creation In General

In general, some studies show renewable energy creates more jobs than fossil fuels

 

[Some studies show renewable energy can create up to 6.7 more jobs times than some fossil fuel energy sources] (greenbiz.com)

 

Jobs Created Per Dollar Invested

Per dollar invested, there can be complications in getting a true understanding of which creates more jobs.

Direct costs, and external costs should be accounted for to get a true understanding of which one leads to more jobs

Overall though, renewables may lead to more jobs per dollar invested than fossil fuels, especially considering how labor intensive they can be comparatively

 

– Jobs Created Per Dollar Invested, In General

From skepticalscience.com:

… [a 2001] report found that wind and solar photovoltaic investments lead to at least 40% more jobs per dollar than coal.

It’s a complicated comparison, because renewable energy sources tend to be more expensive than fossil fuel energy [… and hypothetically …] the extra money invested in renewable energy could have been spent elsewhere to create new jobs in a different sector of the economy.

However, fossil fuel energy [might also be considered] artificially cheap because its price does not account for various external costs [… such as environmental and social costs]

When accounting for all factors, it’s likely that renewable energy results in more jobs per dollar invested than fossil fuels.

 

From cleantechnica.com:

[Renewables] are labor intensive, so they generally create more jobs per dollar invested than conventional electricity generation technologies

 

– Specifically Direct & Indirect Jobs Created Per $1 Million Invested

[Clean energy tends to produce more than three times the amount of direct and indirect jobs than fossil fuel energy per $1 million invested] (greenbiz.com)

 

Jobs Created Per Unit Of Energy (Or Electricity) Delivered

Per unit of energy delivered, and unit of electricity generated, renewables like solar and wind may create more jobs than fossil fuels

Again, the labor intensity of some renewables may contribute to this

 

– Jobs Created Per Unit Of Energy Delivered, In General

From skepticalscience.com:

… renewable energy investment and development tends to create more jobs than fossil fuel energy … per unit of energy delivered (i.e. per average megawatt)

… [this is] because a larger share of renewable energy expenditures go to manufacturing equipment, installation, and maintenance, all of which are typically more labor-intensive than extracting and transporting fossil fuels

 

From cleantechnica.com:

… [Because] the renewable energy industry is more labor intensive [than fossil fuels, this …] means that, on average, more jobs are created for each unit of electricity generated from renewable sources than from fossil fuels.

That is true even when wind and solar power are cheaper for the customer

 

– Jobs Created Per Unit Of Electricity Produced

[A 2009 …] study of a 25-percent-by-2025 renewable energy standard found that such a policy would create more than three times as many jobs (more than 200,000) as producing an equivalent amount of electricity from fossil fuels (ucsusa.org)

 

– Jobs Created Per GWh Produced

[More jobs are created for clean energy per GWh produced than fossil fuels] (greenbiz.com)

 

How Some Renewable Energy Jobs May Differ To Some Fossil Fuel Jobs

Renewable energy jobs like solar and wind energy jobs may be more labor intensive

Fossil fuel jobs on the other hand may be more capital intensive

One report indicates that the quality of renewable energy jobs may also be higher with better pay than fossil fuel jobs

 

Labor Intensity vs Capital Intensity Of Jobs

From cleantechnica.com:

… fossil fuel technologies … are typically mechanized and capital-intensive [… whereas] the renewable energy industry is more labor intensive.

[For example …] Solar panels need humans to install them; wind farms need technicians for maintenance.

 

Renewables are more labor intensive, whereas fossil fuel tends to be more capital intensive (ucsusa.org)

 

Quality Of The Jobs Created

From greenbiz.com:

… [clean energy jobs appear to be] substantially higher quality and higher pay … relative to fossil fuel employment …

Clean energy jobs also generally are more distributed and are largely higher quality jobs

 

Will Renewable Energy Lead To More Jobs In The Future? And If So, How Many?

Several different reports indicate that greater use of renewable energy in general, and wind energy specifically, will both lead to more total jobs in the future through to both 2030 and 2050

This could particularly be the case in States and regions that invest in, or use renewables for a greater % of their energy mix

One report indicates that specific types of renewable energy jobs might see an increase in the future

Another report did however mention that a select small number of specific types of energy based jobs may see a decrease in the future

Projections indicate that there might be continued investment and use of renewables in the future, and these projections alone might indicate that total renewable energy industry jobs will increase 

 

By 2030

For wind energy specifically, cleantechnica.com indicates:

To achieve 20% wind power by 2030 [… there are estimates that …] the United States will require more than 100,000 additional wind turbines, creating more than 500,000 new jobs

 

By 2050

[Some studies show we] can move to 100% renewable energy by 2050, while creating [more total] jobs [in the energy sector] along the way (theconversation.com)

 

For wind energy specifically, cleantechnica.com indicates:

… wind has the potential to support more than 600,000 jobs in manufacturing, installation, maintenance, and supporting services by 2050

 

Some Regions Of A Country May See More Job Growth Than Others

[Economic growth and job growth in renewables in the future could happen in a] few states where the energy jobs are concentrated and more influential, such as in California due to renewables and West Virginia due to coal (scottmadden.com)

 

Types Of Jobs That May See A Reduction

… metal trades are the only type of job that will experience a reduction – all other energy based jobs will see an increase.

The one exception to this is China and India, for example, will both experience a reduction in the number of jobs for managers and clerical and administrative workers between 2015 and 2025.

– theconversation.com

 

Types Of Jobs That Could See An Increase

From 2014-2024 [some predictions indicate that a …] wind turbine technician [will be] the fastest-growing job in America with 108% growth expected versus 7% for all U.S. occupations and 6% for installation, maintenance, and repair occupations (scottmadden.com)

 

Potential Impact Of Increased Investment In Renewables In Future On Jobs

What we do know is that renewable energy has seen increasing investment over the last decade, and that trend isn’t projected to decline heading towards 2050, where several countries will be aiming to achieve climate agreement targets.

So, it might be reasonable to assume that this might lead to increased creation of employment in renewable energy in countries that do invest.

It’s also possible that jobs increase in States and regions with more renewable energy friendly policies, and those who invest the most.

 

What About Nuclear Energy? How Many Jobs Does Nuclear Energy Create? – United States

It appears as though nuclear provides a number of jobs in the US that compares favorably against other energy sources, and, it can provide direct as well as indirect (secondary jobs)

Nuclear jobs may also be ‘high quality’ jobs in some ways

 

Now

The U.S. industry directly employs nearly 100,000 people in high-quality, long-term jobs [and this …] number climbs to 475,000 when you include secondary jobs (nei.org)

 

In The Future

In their report, nei.org also notes the impact the nuclear industry might have on employment growth in the short term future in the US

 

Other Notes On Energy Sector Employment

Some things to consider with employment in the energy sector might be:

– Direct (Primary) & Indirect (Secondary) Jobs

There’s a difference between jobs provided directly by an energy source, and jobs provided indirectly in another industry as a result of an energy source.

Indirect jobs might also be called ‘secondary’ jobs in ‘secondary’ industries 

For example, something that ucsusa.org goes into in more detail is how (paraphrased) jobs are created across an entire project lifecycle (in manufacturing, project development, transport, installation, operation and maintenance, etc.), but also of for consultants and professionals in legal, financial, and other fields.

 

– Full Time & Part Time Jobs

There’s a difference between full time and part time jobs provided by an energy source

It’s worth looking at whether both full time and part time jobs are each counted equally as a job in some reports

 

– Quality Of Jobs

Some jobs might be considered as ‘better quality’ than others, and have better pay.

This might be a consideration of the different types of jobs available across each energy source.

 

– Labor Intensity vs Capital Intensity Of Jobs

Some energy sources are much more labor intensive, and others are much more capital intensive.

Energy sources that are more labor intensive may lead to more total jobs compared to another energy source that is less labor intensive.

 

– Each Country’s Energy Mix Is Ultimately Different

Each country ultimately has a different energy mix, and this impacts how many people are employed in different energy source industries in these different countries

 

– Comparing Number Of Jobs Provided By An Energy Source, To Installed Capacity, Production & Consumption Of Each Energy Sources

It can be interesting to compare the number of total jobs provided by each energy source to the installed capacity, production and consumption of each energy source in a country 

 

 

Sources

1. https://www.scottmadden.com/insight/fossil-50-energy-industry-jobs-yet-renewables-drive-future/

2. https://www.globalresearch.ca/chinas-cutback-in-coal-mining-2-3-million-new-jobs-required-by-2020/5607799

3. https://insideclimatenews.org/news/26052017/infographic-renewable-energy-jobs-worldwide-solar-wind-trump

4. https://irena.org/-/media/Files/IRENA/Agency/Publication/2018/May/IRENA_RE_Jobs_Annual_Review_2018.pdf

5. https://www.irena.org/publications/2018/May/Renewable-Energy-and-Jobs-Annual-Review-2018

6. https://www.ibisworld.com/industry-trends/global-industry-reports/mining/coal-mining.html

7. Various ‘Better Meets Reality’ guides

8. https://cleantechnica.com/2018/03/10/renewable-energy-economic-benefits-know/

9. https://www.ucsusa.org/clean-energy/renewable-energy/public-benefits-of-renewable-power

10. https://skepticalscience.com/print.php?r=371

11. https://theconversation.com/heres-how-a-100-renewable-energy-future-can-create-jobs-and-even-save-the-gas-industry-110285

12. https://insideclimatenews.org/news/07122018/rural-jobs-clean-energy-wind-power-energy-efficiency-renewable-vs-fossil-fuels-climate-change

13. https://www.greenbiz.com/article/how-many-jobs-does-clean-energy-create

14. https://www.vox.com/energy-and-environment/2019/6/18/18681591/renewable-energy-china-solar-pv-jobs

15. https://www.nei.org/advantages/jobs

16. https://www.business.com/articles/the-impact-of-green-energy-on-the-economy/

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