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IEA reports 76 million employed in energy sector in 2024, but skilled labour shortages pose challenges

Energy

IEA warns Energy workforce faces gap

Significant global investment in energy infrastructure drove a 2.2% rise in energy-sector employment last year, nearly double the rate of job growth in the broader world economy, according to a new IEA report

The World Energy Employment 2025 report, released today, shows that the global energy workforce reached 76 million in 2024, an increase of over five million roles since 2019. Over the last five years, the energy sector has contributed 2.4% of all net new jobs created worldwide.

The power sector has been a key driver of this growth, accounting for three quarters of recent employment gains and now ranking as the largest employer in energy, overtaking fuel supply. Solar PV remains a major driver, complemented by expanding employment in nuclear power, electricity grids, and energy storage. As electrification spreads across industries, roles in EV manufacturing and battery production surged by nearly 800,000 in 2024.

Fossil fuel employment remained resilient throughout the year. Coal-sector jobs rose in India, China, and Indonesia, lifting coal employment 8% above 2019 levels despite sharp declines in advanced economies. The oil and gas industry has regained most of the jobs lost in 2020, although low prices and economic uncertainty have triggered some workforce reductions in 2025. Early data suggest that overall energy-sector employment growth may moderate to 1.3% this year, as tight labour markets and geopolitical tensions prompt caution among employers.

Despite the sector’s strong growth, the report highlights a worsening shortage of skilled workers. More than half of the 700 companies, unions, and training institutions surveyed through the IEA’s Energy Employment Survey reported critical recruitment bottlenecks that could delay infrastructure projects, slow major initiatives, and increase system costs.

“Energy has been one of the strongest and most consistent engines of job creation in the global economy during a period marked by significant uncertainties,” said IEA executive director Fatih Birol. “But this momentum cannot be taken for granted. The world’s ability to build the energy infrastructure it needs depends on having enough skilled workers in place. Governments, industry and training institutions must come together to close the labour and skills gap. Left unaddressed, these shortages could slow progress, raise costs and weaken energy security.”

Technical and applied roles such as electricians, pipefitters, line workers, plant operators, and nuclear engineers are particularly hard to fill. These occupations have added 2.5 million jobs since 2019 and now represent more than half of the global energy workforce, more than double their share of total employment across the wider economy.

Demographic pressures are also intensifying. In advanced economies, 2.4 energy-sector workers are nearing retirement for every new entrant under 25. Nuclear and grid-related professions face some of the steepest ageing challenges, with retirement-to-new-entrant ratios of 1.7 and 1.4 to 1, respectively.

At the same time, the supply of newly trained workers is insufficient to meet demand. To prevent the skills gap from widening by 2030, the number of new qualified energy workers globally must increase by 40%. Achieving this would require an additional US$2.6bn per year, less than 0.1% of total global education spending.

The report stresses that policy action can help address these challenges. Respondents identified training costs, foregone wages, and limited awareness of programmes as major barriers to entry. Effective measures include financial incentives for learners, expanded apprenticeship schemes, increased private-sector participation in curriculum design, and investment in training facilities. Reskilling within the sector is also essential. While some regions are already seeing declines in fossil fuel employment, targeted retraining programmes could help workers transition to fast-growing areas of the energy system.

A view of the Al Souda mountains

Energy

Power infrastructure deal for Soudah Peaks

Soudah Development, a Public Investment Fund (PIF) company, has announced a project to deliver advanced power infrastructure to its Soudah Peaks development

The company signed an agreement with National Grid, a subsidiary of the Saud Electricity Company, valued at more than SAR 1.3bn (US$346mn), to develop and deliver power systems for its luxury mountain-based resort.

The company said in a statement that the strategic partnership marks a “critical milestone” in the development of Soudah Peaks.

Its project is described as an ultra-luxury mountain destination in Saudi Arabia, rising 3,015 metres above sea level.

Under the agreement, National Grid will design and construct the integrated electrical network that includes a 380/132 kV central substation with a capacity of 500 MVA, as well as two 132/13.8 kV high-voltage substations.

This infrastructure will form the backbone of the utility ecosystem across all zones of the project, ensuring reliable power delivery to hospitality, residential, commercial, and public assets, for all development phases.

“This agreement represents a pivotal milestone in developing the electrical infrastructure for the Soudah Peaks project,” said Eng. Waleed Al-Saadi, CEO of the National Grid SA.

“It reflects our firm commitment to supporting major development initiatives in the kingdom through integrated solutions built on the highest standards of efficiency and reliability.”

Al-Saadi also said that the partnership with Soudah Development underscores its central role in enabling luxury tourism destinations and the kingdom’s growing economic landscape.

“By establishing an advanced electrical network tailored to meet the project’s needs across all phases, we reaffirm National Grid SA’s continued efforts to enhance the readiness and resilience of the power system in alignment with sustainability goals and Saudi Vision 2030.”

Eng. Saleh Al-Oraini, CEO of Soudah Development, said it marks a defining step forward in the journey to develop Soudah Peaks.

“Through our partnership with National Grid SA, we are securing the infrastructure foundation needed to power all of Soudah Peaks development phases.”

HRH Prince Mohammed bin Salman announced the launch of Soudah Development Company (SDC) in 2024, with plans to attract over two million visitors annually and create 8,000 direct and indirect permanent jobs by 2030.

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Hussein Shoukry - managing director at Siemens Energy MEA. (Image source: Siemens Energy)

Energy

Hussein Shoukry leads Siemens Energy MEA

Siemens Energy has named Hussein Shoukry as the new managing director for the Middle East and Africa. He takes over from Dietmar Siersdorfer, who is retiring after an impressive career spanning nearly four decades with the company.

Based in the UAE, Hussein will oversee Siemens Energy’s operations and strategic initiatives across a regional network of 29 offices, employing more than 4,000 people and generating EUR 9 billion in order intake in fiscal year 2025.

“Rising energy demand is reshaping the future of both the Middle East and Africa,” Hussein said. “In the Middle East, countries are embracing a diversified energy mix and building localized supply chains, while in Africa the priority is expanding reliable electricity access for millions. The region also includes markets where critical energy infrastructure is being rebuilt or modernized.”

He added, “With our broad portfolio in energy technology and long-standing presence, Siemens Energy will remain a committed partner in meeting these needs and strengthening the resilience of the Middle East and Africa’s energy systems.”

Hussein brings extensive experience in managing complex energy projects and enhancing global execution capabilities. Since joining Siemens Energy in 2003, he has held multiple leadership roles, most recently as Senior Vice President for Project Execution, where he led a team of over 3,500 employees and managed the company’s global Competence Centers in Romania, Mexico, and India.

Holding a degree in Construction Engineering from the American University in Cairo, Hussein’s engineering background, project execution expertise, and deep understanding of diverse energy markets across Europe and the Middle East equip him to lead Siemens Energy’s business in the Middle East and Africa effectively.

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