Clean Energy Jobs Surge with Historic High Unionization, DOE Report Reveals
ICARO Media Group
Spurred by the Biden-Harris Administration's investments in climate, clean energy, and manufacturing, clean energy employment in the United States saw significant growth in 2023, according to the recently released U.S. Energy and Employment Report (USEER) by the U.S. Department of Energy (DOE). The report shows that clean energy jobs increased by 142,000, accounting for over half of the new energy sector jobs. Notably, this growth rate was more than twice as large as that for the rest of the energy sector and the overall U.S. economy.
The impressive figures highlight the positive impact of the Biden-Harris Administration's Investing in America agenda, with the energy workforce adding over 250,000 jobs in 2023, with 56% of those in the clean energy sector. Unionization rates in clean energy also reached a historic high, surpassing the average rate in the energy sector. At 12.4%, this growth was driven by increased unionization in construction and utility industries.
Various sectors within clean energy experienced significant growth, including zero-emission vehicles, renewable energy, as well as transmission, distribution, and storage. These sectors play a crucial role in achieving the administration's goal of reaching 100% clean electricity by 2035 while delivering more affordable and resilient energy to communities nationwide.
U.S. Secretary of Energy Jennifer M. Granholm expressed optimism, stating, "Our policies are working. We are now starting to see the job impacts of investments made through the infrastructure and inflation reduction laws - first in construction, and as America builds more of these factories, we'll see hundreds of thousands more. The data clearly show that clean energy means jobs - good jobs, union jobs, and jobs retained - in communities across the country as we race to dominate the global clean energy economy."
The 2024 USEER collected a record number of survey responses, with participation from 42,000 businesses nationwide. Clean energy witnessed a growth rate of 4.2% in 2023, outpacing the overall economy's job growth rate of 2.0%. Clean energy jobs were created in all 50 states and the District of Columbia, with Idaho leading the pack with a growth rate of 7.7%, followed by Texas at 6.0% and New Mexico at 5.9%.
Both the solar and wind sectors recorded strong job growth, increasing by 5.3% and 4.5% respectively. Looking ahead, the DOE projects that the Inflation Reduction Act will contribute to a doubling of clean electricity generation by 2030, primarily driven by solar and wind energy. This expansion will require significant construction efforts across the country. The energy construction sector added nearly 90,000 jobs, growing at a rate of 4.5% - almost double the growth rate of the overall construction industry.
In a new development, the report also tracked jobs resulting from the construction of clean energy manufacturing and supply chain facilities. In addition to the traditional energy construction jobs, the report identified an additional 28,000 jobs in 2023 for building battery and solar module factories, offshore wind ports, and clean energy product storage and transportation warehouses.
The positive employment trends in clean energy extend beyond numbers and statistics. The AFL-CIO President, Liz Shuler, highlighted the significance of clean energy jobs being unionized, saying, "Thanks to the Biden-Harris administration's historic investments, clean energy jobs are booming in every single state. With union density in clean energy at record highs, it's clear we can create good jobs and advance a cleaner economy at the same time."
The 2024 USEER also revealed other interesting insights, such as veterans accounting for 9% of the U.S. energy workforce and the industry having a younger workforce, with 29% of employees below the age of 30. Additionally, Latino and Hispanic workers represented nearly one-third of the new energy jobs created in 2023, experiencing a growth rate of 79,000 workers.
The report underscores the importance of clean energy technologies, which accounted for 79% of net new electric power generation employment. Solar and wind employment experienced growth rates well above the average, with solar jobs becoming more diverse and heavily unionized. The motor vehicle sector also witnessed growth, particularly in zero-emission vehicles, with clean vehicle employment increasing by 11.4%.
The report concludes that Texas, California, Michigan, Florida, and Ohio have the greatest number of energy jobs in the United States, while California, Texas, New York, Florida, and Illinois have the highest number of clean energy jobs. Alabama, Utah, and North Carolina experienced the fastest energy job growth from 2022 to 2023.
The USEER, which began in 2016, provides valuable insights into employment trends in key energy sectors, supplementing data from the Bureau of Labor Statistics. The comprehensive report serves as a crucial tool in understanding and tracking the growth of the energy industry's workforce.
With clean energy jobs expanding nationwide and demonstrating the potential for economic growth and sustainability, it becomes evident that investment in clean energy not only benefits the environment but also fosters job creation and prosperity for communities across the United States.