Clean energy promotes job growth in the US energy sector

According to Department of Energy data, more than half of all new jobs created in the U.S. energy sector last year were in the clean energy sector.

In total, the energy sector added 250,000 new jobs in 2023, bringing the number of people employed in the energy sector to 8.35 million, according to the annual U.S. Energy and Jobs Report. 142,000 of these jobs were in the clean energy sector.

“We are doing great things in America's energy sector, and that is translating greatly into job creation across the country,” national climate adviser Ali Zaidi said in a call with reporters.

The largest gains were in jobs in power generation, including wind and solar energy, which rose 4% from the previous year. In solar alone, more than 18,400 new jobs were created, representing a 5.3% increase from the previous year.

A worker applies tape to a solar panel at First Solar in Perrysburg, Ohio, July 8, 2022. REUTERS/Megan Jelinger (Reuters)

Within the fuel sector, the onshore oil and gas industry recorded the largest increases with 9,028 new jobs created, while jobs in mining and extraction stagnated with a growth rate of 0.4 percent.

The report outlined job gains in all 50 states, driven in part by incentives in the bipartisan infrastructure bill of 2021 and President Biden's climate bill of 2022, also known as the Inflation Reduction Act. Biden administration officials touted the incentives as a driver of renewable energy expansion.

Republican-leaning states in particular have so far benefited disproportionately from the inflation-reduction bill's clean energy investments. The states that saw the fastest growth in clean energy jobs in 2023 – Texas and Idaho – were also those whose lawmakers overwhelmingly voted against the climate bill. Still, the clean energy provisions have gained support among some Republicans in the two years since the bill passed, Politico reported.

Zaidi also highlighted the increase in union density in the report. Union density in the clean energy sector was 12.4%, which exceeded the average union density in the energy sector, even though jobs were largely concentrated in the construction and utilities sectors.

“This is the result of a very targeted policy to strengthen our workforce and is being done in partnership with the unions,” said Zaidi.

Despite strong gains in the emerging clean energy sector, the fragmentation of the energy sector highlighted the challenge Biden faces in balancing the country's energy needs. Clean energy jobs still account for less than half of all jobs in the sector.

The president has promised to halve US emissions by 2030 compared to 2005 levels. At the same time, he has witnessed a record boom in American oil production.

Slowing demand for electric vehicles is also complicating Biden's broader push to accelerate the use of green energy.

Jobs in clean energy vehicles grew 11% in 2023, with the strongest growth coming from battery-electric vehicles. But major automakers have scaled back their electric vehicle ambitions in recent months, citing waning market appetite.

Last week, Ford (F) announced that it would cancel the launch of its large electric SUV and delay the launch of its new electric pickup truck by a year. Previously, GM (GM) announced it would delay production of electric pickup trucks at its Orion plant in Michigan until 2026 and indefinitely postpone the launch of Buick's first electric vehicle.