The U.S. Department of Energy (DOE) has released its second annual analysis detailing the impact of changes in America's energy profile on national employment across key economic sectors. The 2017 U.S. Energy and Employment Report (USEER), based on a supplemental survey of over 30,000 energy sector employers, highlights significant growth in various sectors of the U.S. economy throughout 2016.
"This report verifies the dynamic role that our energy technologies and infrastructure play in a 21st-century economy," stated DOE Senior Advisor on Industrial and Economic Policy David Foster. "Whether producing natural gas or solar power at increasingly lower prices or reducing our consumption of energy through smart grids and fuel-efficient vehicles, energy innovation is proving itself as an important driver of economic growth in America, producing 14% of the new jobs in 2016."
Key findings from the report include:
- The Traditional Energy and Energy Efficiency industries now employ 6.4 million Americans, adding over 300,000 net new jobs in 2016, accounting for 14% of the nation’s job growth.
- Energy efficiency jobs increased by 133,000 to a total of 2.2 million.
- Investments in energy transmission, distribution, and storage generated 65,000 new jobs.
- Solar industry employment surged by over 73,000 jobs or 25%.
- Wind industry employment added 25,000 new jobs to reach a total of 102,000.
A copy of the full report is available online.
USEER examines four sectors: electric power generation and fuels; transmission, wholesale distribution, and storage; energy efficiency; and motor vehicles. These sectors collectively represent nearly all U.S. energy production and distribution systems and approximately 70 percent of U.S. energy consumption. By covering such a broad spectrum of the energy economy, USEER aims to provide policymakers with insights into how changes in energy technology and usage are affecting job creation or displacement.
Additional findings from the report reveal:
- Of the 1.9 million workers in Electric Power Generation and Fuels, around 800,000 contribute to low-carbon electricity production including renewable energy sources.
- Approximately one-third (32%) of the U.S. construction industry's workforce is engaged in energy or building efficiency projects.
- In the Motor Vehicles industry with its workforce of 2.4 million employees, about 259,000 jobs are supported by alternative fuel vehicles—an increase of 69,000 during 2016.
The report also forecasts potential job increases within several energy industries for upcoming years:
- The energy efficiency sector anticipates hiring rates at nine percent for an estimated addition of 198,000 new hires.
- The electric power generation sector expects seven percent growth.
- Transmission, wholesale distribution, and storage firms predict six percent employment growth.
Conversely, the Fuels sector foresees a three percent decline in employment for the year ahead.
Despite these opportunities for job growth across many sectors, the report notes that hiring remains challenging for many employers: "73 percent of all employers surveyed found it 'difficult or very difficult' to hire new employees with needed skills," reflecting a slight increase from previous years.
For the first time this year, USEER includes individual State Energy and Employment Profiles which highlight regional variations in job growth within specific energy sectors across different states. For example:
- California accounts for nearly half (41%) of all solar jobs nationwide.
- Texas holds nearly a quarter (24%) of all wind-related employment.
The data used for USEER comes from primary data collected on behalf of DOE (OMB Control No.1910-5179) alongside secondary data from the United States Department of Labor’s Quarterly Census of Employment and Wages for Q1 of 2016.
###
