The U.S. energy sector will need about 500,000 more workers by 2030 due to rising demand for artificial intelligence (AI), according to a report from Goldman Sachs. The report shows that the sector faces a major labor shortage. In 2024, only 45,000 new workers will enter the energy apprenticeship pipeline. The industry needs around 65,000 new professionals each year to meet demand.
Training Challenges
Training workers for these jobs usually takes three to four years. This delay makes it hard to solve the labor shortage. The energy sector employed about 8.5 million workers as of 2024, with a median annual salary of $58,810, according to the U.S. Department of Energy. However, there are higher-paying jobs available. Traditional fuel production jobs average $65,400, while power plant operators earn around $103,600 annually. The report warns that if the workforce cannot be trained properly, the industry may turn to humanoid robots. An estimated 1.4 million robots are expected to enter the market by 2035.
Shift in Job Market Perception
Earlier views suggested that AI would cause job losses. However, there is a shift toward seeing AI as a way to create new job opportunities. A report from Forbes states that in the next five to ten years, 6% to 7% of jobs will be fully affected by AI. Yet, the U.S. economy naturally creates and destroys 25 to 35 million jobs each year. Companies that invest heavily in AI are reportedly increasing their workforce by over 10%. There is also a 12% rise in entry-level hiring.
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The growing need for skilled workers in the energy sector could lead to more competition for labor. This may affect wages and hiring practices in related industries. Investors will be on the lookout for new training programs and government policies aimed at addressing the labor shortage in the energy sector.
Based on reporting by: fortune.com, forbes.com