Clean Energy Jobs Grow as Federal Investment Takes Hold

The U.S. clean energy sector created nearly 150,000 new jobs in 2023, a rate nearly three times higher than growth in overall employment, a new report indicates.  This surge in job growth was likely spurred by the 2022 Inflation Reduction Act, (IRA), which provides $400 billion in federal funding for clean energy through a mix of tax incentives, grants, and loan guarantees to lower the nation’s carbon emissions .

A report recently released by E2 – a non-partisan think tank consisting of business leaders invested in sustainable development – discovered that every green energy sector in the U.S. grew more than twice as fast as overall national employment. Additionally, the U.S. green energy sector grew 14% since 2021, to almost 3.5 million workers, and new clean energy jobs accounted for more than 6% of all new jobs created in the U.S. in 2023. 

Pennsylvania ranks 10th overall in clean energy jobs, currently with over 100,000. The state also ranks 21st in terms of green energy sector growth, with a 4.6% increase between 2023 and 2024, and 16% job growth since 2020. 

Not surprisingly, California is the top state in clean energy employment, with more than 500,000 employed, followed by Texas and Florida. In the Appalachian region, Ohio was in the top 10, ranking eighth. However, southern states, led by Texas, accounted for five of the top 10 fastest-growing states for clean energy jobs.

The job sectors included in the clean energy report are renewable generation, energy efficiency, storage and grid modernization, clean vehicles, and biofuels. Energy efficiency accounts for the most jobs, with nearly 2.3 million workers. Renewable energy and clean vehicle jobs are the next highest. Clean vehicle makers lead all sectors in job growth, adding more than 40,000 jobs in 2023. Renewable generation sectors added more than 25,000 jobs in 2023, and now employ about 560,000 workers. On the industry front, manufacturing and other services, including vehicle repair and maintenance, accounted for almost 60 percent of the jobs added.

Clean energy has outpaced economy-wide employment growth for the last five years. If the growth seen during the first full year of investment through the IRA is an indication, the trend is likely to continue in the coming years through continued investment and industry expansion.