Jobs

Investment in energy efficiency creates jobs in a wide range of occupations and geographic locations.

• Around 10 million people work in energy efficiency-related jobs globally, representing nearly 15% of all energy-related jobs.
• Studies indicate that energy efficiency creates between 4 and 22 jobs per USD 1 million invested, depending on economic structure and energy efficiency measure. By lowering energy spending, energy efficiency also helps foster business growth and competitiveness.    
• Energy efficiency offers a wide array of job opportunities, including in installation and repair but also in the manufacturing, supply and distribution of efficient equipment.
  

A review of studies shows that an investment of USD 1 million can create and maintain for one year between 5 and 22 jobs in the buildings sector, between 4 and 14 jobs in the industrial sector, and between 5 and 15 jobs in the transport sector.

Energy efficiency spurs job creation at the local level while creating economy-wide gains. While jobs in industrial efficiency and manufacturing tend to be more concentrated, sectors such as buildings, which require the deployment of technicians to install and repair equipment or energy auditors, can also boost local employment. Investments in qualification and upskilling can decrease the risk of skills and labour shortages and enable the economy to benefit from the full potential of energy efficiency job creation.

In the United States, IEA analysis shows that energy efficiency offers more jobs than other energy sectors – such as fossil fuel supply, power generation, or transmission and distribution – across a variety of locations. For instance, in areas with high unemployment rates, energy efficiency accounts for an even higher share of energy sector jobs than in areas with lower unemployment. Meanwhile, other energy sector jobs are more prevalent in areas with lower unemployment rates.

Energy efficiency investments also contribute to enhance the quality of jobs in other industries. Firms that invest in energy efficiency can significantly improve the quality of the working environment, with efficient lighting that provides increased visual comfort, or efficient ventilation systems that enhance air quality. By freeing up businesses’ spending through reduced energy bills, energy efficiency helps minimise cost pressures and supports employers in safeguarding jobs. 

• IEA (2020), World Energy Outlook Special Report - Sustainable Recovery.
• MICAT (2024), Empirical basis factsheet on Economic impacts – Employment effects.