U.S. energy employment report: statistics by gender, age, race, and union status

USEER May 2018 reportThe 2018 U.S. Energy & Employment Report (USEER) was released in May, reporting that the traditional Energy and Energy Efficiency sectors employ approximately 6.5 million Americans, with a job growth rate of approximately 133,000 net new jobs in 2017 – approximately 7% of total U.S. new job growth.   The report provides detailed employment data for energy sectors including Electric Power Generation and Fuels Production (including biofuels, solar, wind, hydro and nuclear) and Electricity Transmission, Distribution and Storage. It also includes two energy end-use sectors: Energy Efficiency and Motor Vehicle production (including alternative fuel vehicles and parts production).  It is important to note that, unlike many other sources, this survey includes only direct jobs, and not indirect and induced jobs.

In addition to overall employment totals, the report provides an in-depth view of the hiring difficulty, in-demand occupations, and demographic composition of the workforce – including breakdowns by gender, age, race and by union composition.  As an example for solar electric power generation: “about a third of the solar workforce in 2017 was female, roughly two in ten workers are Hispanic or Latino, and under one in ten are Asian or are Black or African American. In 2017, solar projects involving PV technologies had a higher concentration of workers aged 55 and over, compared to CSP technologies.”

The previous USEER reports for 2016  and 2017  were compiled and published by the U.S. Department of Energy.  In 2018, under the Trump Administration, two non-profit organizations,  the National Association of State Energy Officials and the Energy Futures Initiative, took over the task of compiling the data, using the identical survey instrument developed by the DOE.  Timing was coordinated so that year over year comparisons with the precious surveys are possible.  Peer review of the report was performed by Robert Pollin, (Political Economy Research Institute) and  James Barrett, (Visiting Fellow, American Council for an Energy Efficient Economy).  The overview website, with free data tables at the state level, is here   .

Trump’s solar tariffs may impact solar jobs worldwide

solar installers on roofDonald Trump’s decision to impose tariffs on solar panels and washing machines on January 23  was roundly criticized on many grounds – most frequently, the impact on jobs in the solar industry, as stated in the  New York Times Editorial on January 23 ,“Mr. Trump’s Tariffs will not bring back manufacturing jobs”.   The Times supported their opinion with several articles, including  “Trump’s Solar Tariffs are clouding the industry’s future” (Jan. 23) , which states: “Far more workers are employed in areas that underpin the use of solar technology, such as making steel racks that angle the panels toward the sun. And the bulk of workers in the solar industry install and maintain the projects, a process that is labor-intensive and hard to automate.” The Solar Energy Industries Association in the U.S. response is here, and their Fact Sheet (Feb. 2)  explains the terms and impact of the decision. The Solar Foundation released its 8th annual Jobs Census on February 7, revealing the first-ever year of decline in the number of jobs, but still a census of over 250,000 workers.    For a thorough overview, see the Fact Checker article by the Washington Post,  “Trump says solar tariff will create ‘a lot of jobs.’ But it could wipe out many more” (Jan. 29).

Three Canadian solar companies immediately filed a suit against the tariffs in the U.S. Court of International Trade, arguing that they violate NAFTA. The EU, China, South Korea, and Taiwan have also filed complaints at the World Trade Organization.  For a deeper look at the possible implications for other countries, including Canada, consider the complexity of global trade:  From an excellent overview in  The Energy Mix: “Trump Solar Tariff may be opening salvo in trade war”: “Although China appeared to be Trump’s intended target, the tariff on solar cells and panels will mostly hit workers in other countries. Thanks to dispersed supply chains—and partly in response to previous U.S. tariffs—solar photovoltaic manufacturing is a global industry. Malaysia, South Korea, and Vietnam all hold a larger share of the U.S. market than China does directly. And all are entitled to seek remedies under various trade agreements.”   The Energy Mix item refers to “U.S. tariffs aimed at China and South Korea hit targets worldwide”    in the New York Times (Jan. 23), which adds:  “Suniva, one of the American solar companies that had sought the tariffs, filed for bankruptcy protection last year, citing the effects of Chinese imports. But the majority owner of Suniva is itself Chinese, and the company’s American bankruptcy trustee supported the trade litigation over the objections of the Chinese owners.” From Reuters,  “Why the US decision on solar panels could hit Europe and Asia hard”  states that Goldman Sachs estimated that the tariffs implied “a 3-7 percent cost increase for utility-scale and residential solar costs, respectively …. Two key exclusions with respect to technology and certain countries (Canada/Singapore, among others) were included as part of the (initial) recommendation.” Canadian Solar , founded in Canada but a multinational traded on NASDAQ,  is one the world’s biggest panel manufacturers.

For an overview of the current state of the U.S. renewable energy markets and labour force, including solar, see  In Demand: Clean Energy, Sustainability and the new American Workforce  (Jan. 2018) , co-authored by Environmental Defense Fund (EDF) and Meister Consultants Group.  Highlights:  there are  4 million clean energy jobs in the U.S., with wind and solar energy jobs outnumbering  coal and gas jobs in 30 states.  Quoting the IRENA Renewable Energy and Jobs Annual Review for 2017 ,  the In Demand report states that: “The solar industry grew 24.5 percent to employ 260,000 workers, adding jobs at nearly 17 times the rate of the overall economy in 2016.”  The coal industry employs 160,000 workers in the U.S.  In Demand  compiles statistics from the U.S. Department of Energy, International Energy Agency, International Renewable Energy Agency (IRENA) and many others, about current and projected clean energy markets and employment in the U.S.: renewable energy, energy efficiency, alternative vehicles, and energy storage and advanced grid sectors.

 

Exceptional growth in clean energy jobs forecast for Europe and the U.S.

SolarPower Europe, together with consultants EY, published Solar PV Jobs & Value Added in Europe  in early November, concluding that Europe is poised for a solar jobs revival after several years of policy-driven uncertainty.  The report discusses the policy environment, including trade policies, makes job projections, and  estimates the socio-economic impact per segment of the value chain, for roof-mounted and ground-mounted solar.  The job creation forecast:  the  the PV sector workforce will grow from 81,000 full time jobs (FTE) in 2016 to over 174,000 FTE by 2021 (an increase of 145% in the next 5 years). As quoted in an article in PV Magazine, the President of the European solar industry association states that an additional 45,500 jobs could be created across Europe next year if the trade restrictions on modules and cells from Asia were to be removed. SolarPower Europe proposes an industrial competitiveness strategy for solar in Europe which aims to support 300,000 direct and indirect jobs by 2030. It has also released a Policy Declaration, Small is Beautiful which promotes the benefits of small scale, clean, locally owned distributed energy.

In the U.S., the New York State Energy Research and Development Authority (NYSERDA) released the 2017 Clean Energy Industry Report  on October 27, showing a 3.4% employment growth rate for clean energy between December 2015 to December 2016 (surpassing the economy as a whole). Growth is  projected  to double again to 7% by the end of 2017. At the end of 2016, clean energy jobs employed 146,000 New Yorkers, distributed as follows:  110,000 jobs in energy efficiency; 22,000 renewable electric power generation (12,000 of which are found in solar energy); 8,400 alternative transportation;  2,900 renewable fuels, and 1,400 in grid modernization and storage.   The report also discusses a labour market imbalance where demand exceeds supply of clean energy workers, with employers reporting  the most difficult positions to fill are engineers, installers or technicians, and sales representatives.

Finally from the U.S.,  an article by Bureau of Labor Statistics (BLS) economists, appeared in the October issue of Monthly Labor Review with a summary and analysis of  the detailed data of Employment Projections for the entire U.S. economy for 2016-26, released on October 24.  The article notes: “Healthcare and related occupations account for 17 of the 30 fastest growing occupations from 2016 to 2026.   …   “Of the 30 fastest growing occupations, 6 are involved in energy production. Employment for solar photovoltaic (PV) installers is expected to grow extremely fast (105.3 percent) as the expansion and adoption of solar panels and their installation create new jobs. However, because this is a relatively small occupation, with a 2016 employment level of 11,300, this growth will account for only about 11,900 new jobs over the next 10 years. Developments in wind energy generation have made this energy option increasingly competitive with traditional forms of power generation, such as coal and natural gas, and are expected to drive employment growth for wind turbine service technicians. Employment of these workers is projected to grow 96.1 percent. As with solar PV installers, this occupation is small, and its rapid growth will account for only about 5,500 new jobs.”  Surprisingly,  “Faster-than-average employment growth from 2016 to 2026 is projected for a number of oil and gas occupations, including roustabouts, service unit operators, rotary drill operators, and derrick operators. The oil price assumptions in the MA model are expected to cause employment growth in the oil and gas extraction industry, at an annual growth rate of 1.7 percent over the 2016–26 decade. ”

 

First Nations, Renewable Energy, and the benefits of community-owned energy projects

“These are exciting times in British Columbia for those interested in building sustainable, just and climate-friendly energy systems.” So begins the October 12 featured commentary, “BC First Nations are poised to lead the renewable energy transition”, published by the Corporate Mapping Project, a research project led by the University of Victoria, Canadian Centre for Policy Alternatives (BC and Saskatchewan Offices) and Parkland Institute. The commentary summarizes the results of a survey conducted for the B.C. First Nations Clean Energy Working Group  by academics at the University of Victoria , published in April 2017 . The survey reveals that 98% of First Nations respondents were either interested in, or already participating in a renewable energy projects – 78 operational projects, 48 in the planning or construction phase, and 250 further projects under consideration in B.C. alone.  The responses reveal a growing interest in solar photovoltaic (PV), solar thermal, biomass and micro-hydro projects under development—compared to already-operational projects, 61% of which are run-of-river hydroelectricity. Survey respondents identified three primary barriers to their involvement in renewable energy projects: limited opportunities to sell power to the grid via BC Hydro – (mostly because of the proposed Site C hydro project), difficulties obtaining financing, and a lack of community readiness.

Although the discussion focuses specifically on B.C.’s  First Nations, the article holds up the model of community-level energy projects beyond First Nations : “Instead of proceeding with Site C, BC has an opportunity to produce what new power will be needed through a model of energy system development that takes advantage of emerging cost effective technologies and public ownership at a community scale. Doing so would enable an energy system that can be scaled up incrementally as demand projections increase. It would also ensure the benefits energy projects are channelled to communities impacted by their development, and help respond to past injustices of energy development in our province….Choosing this path would result in a more distributed energy system, more resilient and empowered communities, a more diverse economy and a more just path towards climate change mitigation.”

CBC reported on another survey of First Nations – this one at a national level –  in “Indigenous communities embracing clean energy, creating thousands of jobs” ( October 11). The article focuses on First Nations renewable energy projects on a commercial scale, stating: “nearly one fifth of the country’s power is provided by facilities fully or partly owned and run by Indigenous communities”. The article links to case studies and numerous previous articles on the topic, but focuses on the job creation impacts of clean energy: “15,300 direct jobs for Indigenous workers who have earned $842 million in employment income in the last eight years.”

The CBC article summarizes a survey conducted by Lumos Energy , a consultancy which specializes in energy solutions, especially renewable energy, “for First Nations, Métis and Inuit leaders and communities”. Lumos Energy  leads the Indigenous Clean Energy Network ; its principal, Chris Henderson, has written the book Aboriginal Power: Clean Energy and the Future of Canada’s First Peoples (2013).

$1.5 billion will buy new renewable energy projects, good green jobs, and environmental justice in New York State

On  June 2, New York Governor Andrew Cuomo announced that his state would invest $1.5 billion in renewable energy projects through the Clean Climate Careers Initiative.  The program has three elements:  “supercharge” clean energy technologies, create up to 40,000 clean energy jobs by 2020, and  achieve environmental justice and Just Transition for underserved communities. Both the Governor’s press release and one from the Worker Institute at Cornell University Industrial and Labor Relations School attribute the inspiration for the new renewable energy initiative to the  “Labor Leading on Climate” program at the Worker Institute.

The  Institute has just published Reversing Inequality, Combatting Climate Change: A Climate Jobs Program for New York State (June 2017),  in which Lara Skinner and  co-author J. Mijin Cha argue for an “audicious”  job creation plan which would create decent green jobs in the building, energy, and transport sectors.  The report provides case studies and specific proposals to reduce GHG emissions – for example, to retrofit all public schools in the state to reach 100 percent of their energy efficiency potential by 2025, reduce energy use in all public buildings by 40 percent by 2025, install 7.5 GW of offshore wind by 2050,  rehabilitate New York City public transit, and construct and improve the existing high-speed passenger rail corridor between Albany and Buffalo, and between New York City and Montreal.  The report also includes a recommendation to establish a Just Transition Task Force – a recommendation incorporated in Governor Cuomo’s plan.

In the plan announced  by Governor Cuomo, $15 million has been committed “to educators and trainers that partner with the clean energy industry and unions to offer training and apprenticeship opportunities, with funding distributed to the most innovative and far-reaching apprenticeship, training programs and partnerships.  ”  The state is also committed to the use of a Project Labor Agreement framework for the construction of public works projects associated with the initiative.

A Working Group on Environmental Justice and Just Transition has been appointed and staffed, with a first meeting scheduled for June.  It will advise the administration on the integration of environmental justice principles into all agency policies, and to shape existing environmental justice programs.  The press release includes endorsements from the NYC Environmental Justice Alliance and unions, including: Greater New York Building Construction Trades Council, New York State AFL-CIO, New York City Central Labor Council, AFL-CIO, IBEW Local 3, Transport Workers Union, Utility Workers Union Local 1-2,  United Association Plumbers & Pipefitters, and the past Secretary Treasurer of Service Employees International Union.

Governor Cuomo’s  Renewable Energy initiative was announced one day after Donald Trump’s  withdrawal from the Paris Climate Accord, and after the Governor had signed an Executive Order  reaffirming New York’s  commitment to the Paris goals, and had launched a Climate Alliance with the states of California and Washington.