Energy

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What the Data Says About the Energy Industry’s Outlook

The energy industry faces critical labor pressures largely due to severe worker shortages: Workers in traditional roles are retiring, while not enough young workers are replacing them. Along with a widening skills gap, local competition for talent is stiff. Upskilling and retraining efforts are crucial to ensure the workforce can meet the demands of a rapidly evolving industry.

Risk Factors

2.7

Labor Supply

The energy industry faces a severe shortage of workers due to retirements in traditional roles alongside challenges in attracting new talent. With movement toward renewables and advanced technologies, skills available in the labor market and those needed present gaps, while the fossil fuel sector faces challenges in attracting young talent.

3.8

Labor Demand

Demand for talent is expected to remain high as sustainable energy, technological advancement in energy management, and infrastructure modernization require hands-on labor with specialized skills; simultaneously, petrochemicals remain in demand. Competition for talent will remain moderately high.

3.4

Unemployment Rate

Energy is largely confined to local activities, and is thus reliant on regional availability of workers. Specific skill sets required for energy-related jobs create challenges in hiring from available labor pools—specialized training, certifications, and experience are often necessary, which limits a slightly favorable unemployment rate.

3.6

Disruptive Skills

The energy industry is progressing in adopting new technologies, increasingly using big data and machine learning to improve efficiency and safety—but finding talent who can implement and optimize these technologies is challenging. Renewable energy requires new skills and many workers trained in traditional roles lack these skills.

Methodology

Lightcast has conducted an in-depth analysis of 627 of Fortune 1000 companies across the globe to grade the threat that the shrinking labor force wil have across various industries. To note, the grades are not based upon anything that companies are doing wrong, but instead to demonstrate the external factors impacting the ability of industries to maintain a future-ready workforce in an Increasingly disruptive landscape.

Grading Definitions:

Workforce Readiness Outlook

Labor Supply Grade

The overall score for the top 15 (or fewer) markets. A high grade means that the markets have high volumes of workers, a low grade means that the markets have a comparatively low labor supply.

Demand Grade

Combination of the two scores for working age population and Fortune 1000 job postings and Key Competitor presence. A high grade means that, comparatively, the company is not in markets with a lot of other major consumers of talent.

Unemployment Rate Grade

The overall score for the top 15 (or fewer) markets. A high grade means that the markets have higher unemployment rates which will allow longer periods of hiring into the future without enormous pressure on wages. A low grade shows that the unemployment rate is already tight and cannot handle further hiring going forward.

Disruptive Skills

The balance of skills companies are exposed to that are both hard to tind and expensive to acquire. An imbalanced exposure means having either too many skills everyone wants to hire, or too lew skills that organizations will need to catch up to competitors tor.

Solving Energy Workforce Management

Talent Analyst

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