In terms of clean energy spending and policy initiatives, the United States has long lagged far behind other developed countries. However, recent legislation from the Biden administration and a shifting global energy market have rekindled the nation’s dormant path to decarbonization.

According to the U.S. Department of Energy, In 2022, more than 114,000 clean energy jobs were created, accounting for more than 40% of all domestic energy jobs. This trend is not limited to environmentally conscious states like California; an increase in green jobs has been observed in all 50 states.

However, the employment gap in the green energy sector is a skill gap as well as a personnel gap. Many displaced fossil-fuel workers will lack the skills required to transition to renewable energy jobs. While there has been a 20% increase in green job postings on LinkedIn in the United States, the increase in green talent has been only 8.4%. Despite this, traditional economy jobs like construction, electrical work, and engineering can easily be converted to green jobs.

To summarize, while the United States’ transition to clean energy is creating new job opportunities, there is a significant gap between the demand for green jobs and the availability of skilled workers. To support a just transition for fossil fuel workers and their communities, strategies such as the establishment of a dedicated federal office, the identification of labor market frictions, and adequate funding are required.

Source: OilPrice.com

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