The energy and utility industries power our everyday lives and play a major role in the global economy. 

The energy industry is made up of companies that produce oil, natural gas, coal, renewable fuels, and electricity from clean energy sources such as wind, solar, hydropower, geothermal, and nuclear power. Utilities work hand in hand with the energy industry to distribute and deliver power to businesses, homes, schools, hospitals, and more. 

Given the expansive footprint and impact of the energy and utility industries, it’s no surprise they employ a significant portion of the U.S. workforce. And as the energy landscape evolves, that number will continue to grow. 

Job Growth 

The energy sector employed more than 8.1 million Americans in 2022, according to the most recent U.S. Energy and Employment Report (USEER). Between 2021 and 2022, energy employment grew by 4 percent, outpacing the 3.1 percent growth rate of the U.S. workforce overall.  

Clean energy jobs increased in all 50 states and grew 3.9 percent nationally from 2021 to 2022. Texas, California, and Pennsylvania were the states that experienced the largest upticks in energy jobs. Every technology category in the energy sector saw an increase in jobs between 2020 and 2022. 

• Motor vehicles (+13 percent since 2020)
• Energy efficiency (+7.4 percent) 
• Fuels (+11 percent) 
• Transmission, distribution, and storage (+3.8 percent) 
• Electric power generation (+6.1 percent) 

As of 2022, the energy sector has recovered 71 percent of the jobs lost in 2020. 

Workforce Demographics and Diversity 

Gender: Data from the U.S. Energy and Employment Report shows that the energy workforce is predominantly male (73 percent), with women holding just 26 percent of positions industrywide—well below the national workforce average of 47 percent. Although women remain underrepresented in the energy workforce, their participation has risen. Over half of the jobs added to the energy industry in 2022 were held by women. 

Race: There was a slightly higher percentage of non-white workers in energy (24 percent) compared to the entire U.S. workforce (23 percent). However, the industry had a below-average percentage of Black or African American workers. The proportion of Hispanic or Latino workers in energy (18 percent) was just below the national average of 19 percent, and the percentage of Asian workers was the same as the national workforce average (7 percent).  

Age: The energy workforce was younger than the U.S. workforce overall, with 84 percent of workers falling under age 55. 

Veterans: One area where energy outperformed other industries was its employment of veterans. In 2022, veterans made up 9 percent of the U.S energy workforce—higher than the national workforce average of 5 percent. 

Looking Ahead 

With so much change and innovation taking place across the energy industry, businesses must take a proactive approach to developing and managing their workforce. 

The 2023 Gaps in the Workforce Report, conducted by the Center for Energy Workforce Development (CEWD), highlights key takeaways and strategies to help organizations stay competitive as the industry evolves. 

1. Aging workforce and retirements: The industry has made progress replacing retirees with younger people entering the workforce, as evidenced by the 56 percent of workers who have fewer than 10 years of experience. But companies now face the challenge of developing a younger generation of employees. The industry must prioritize training and mentorship programs that will equip younger, less experienced workers with the skills and knowledge they need to succeed and advance in their careers. 
2. Growth in emerging technology jobs: Technology-related jobs in the energy industry are on an upward trajectory, underscoring the need for more retraining and reskilling. These initiatives will help retain and leverage industry employees whose jobs could be in danger of being eliminated as new technologies come to the forefront. 
3. New normal post-COVID: Non-retirement attrition has risen since the pandemic, which means energy employers are facing higher competition for talent from companies outside of the industry. If this turns out to be a lasting trend, companies will need to bolster their retention efforts and show employees the benefits of a long-term career in the energy industry. 
4. Trends in diversity, equity, and inclusion: Energy companies have widely adopted DE&I practices, particularly regarding strategies, goals, and programs for attracting diverse talent. DE&I policies with the lowest adoption rates among the companies surveyed relate to board training and incorporating diversity goals into performance evaluations and executive pay plans. 

The energy and utility industries keep our communities and economy running smoothly. By taking a proactive approach to finding, retaining, and training qualified talent, they’ll be well positioned to continue doing so in the years and decades to come. 

Broadleaf Results offers a comprehensive suite of workforce solutions to organizations in the energy and utility industries. Contact us today to learn more about how we can work together to streamline your talent acquisition and workforce management needs.