750,000+ Power Sector Workers Needed by 2030: Country Wise Demand and Labor Shortage Explained

As electrification has become a global priority, the power sector is undergoing a massive workforce transition. Goldman Sachs Research predicts that by 2030, the power sector will require more than 750,000 workers in the US and Europe because of growing energy demands driven by industrial growth and rapid data center expansion in the information sector.

In the US, power generation and grid expansion will need around 510,000 new workers while the EU will need around 250,000 from workforce planning in renewable energy and infrastructure development.

Why So Many New Workers Are Needed

In the United States, the demand for power is projected to increase by a Compound Annual Growth Rate (CAGR) of 2.5% from 2023 through 2030 and a sizable portion of that increase will be attributable to data centers. In total, the power market will need 300 GW of new generation capacity, resulting in $444 billion in power generation investment and $302 billion in transmission & distribution investment. In Europe, the expected increase is even greater, with a CAGR of 3.5% and substantial new solar and wind deployments.

Renewable energy sources are also 2.5 times more labor intensive than fossil fuels thus placing more pressure to secure skilled labor for construction, operations and maintenance.

A Growing Labor Shortage Risk

Both US and European economies are facing tight labor markets. In the US, the pipeline of energy apprentices needs to increase to account for 65,000 per year from 45,000 per year, in order to meet demand. The average workforce experience is under 10 years, for over 50 percent of the workforce. Europe is facing a similar situation, with electrical engineers at the 50 year old + having more than 30 % of the workforce and job vacancy rates in the utilities sector is faster than the overall economy.

Companies that are willing to invest in training, upskilling and automation will likely outperform their competitors, using the access to labor as a competitive advantage in the pursuit of dependable, clean energy.