More than three years after the COVID-19 pandemic devastated over 600,000 clean energy jobs, the cleantech industry is well on its way to recovery. Today, nearly 80 percent of those jobs have been regained, reflecting a strong rebound and renewed momentum. The sector’s growth shows no signs of slowing, thanks to a few key factors.

Key Drivers of Cleantech In 2024

In 2024, electric vehicle (EV) manufacturing remains a key driver of job creation in the cleantech industry. Global EV revenues are expected to surpass $800 billion by 2025, driven by continued consumer demand and advancements in battery technology. 

Consumer trends and ongoing government initiatives support the sector’s expansion. The Inflation Reduction Act (IRA) continues to play a significant role, with its provisions now fully in effect. 

This year, the IRA has mobilized substantial investments, and it’s estimated that the clean energy subsidies from the Act will create over 600,000 jobs annually for the next decade, particularly in solar, wind, and EV infrastructure.

These subsidies are directly benefiting American homeowners. New and expanded tax credits are available and Americans are taking note. As a result, clean energy adoption at the residential level is rising sharply, leading to a broader transition away from fossil fuels. 

This combination of industry and consumer incentives positions EV manufacturing and home energy improvements as key pillars of the cleantech workforce’s growth through 2024 and beyond.

Additional Signs of Cleantech Growth in 2024

Expansion of Employment Opportunities

The cleantech sector has shown remarkable resilience and continues to drive U.S. job creation. The latest 2024 U.S. Energy and Employment Report highlights the following:

• Clean energy jobs grew by 4.2%, more than double the U.S. economy’s growth in 2023.
• For the first time, unionization rates in clean energy (12.4%) surpassed the broader energy sector average (11%).
• The clean energy construction sector saw a 4.5% employment growth, driven by over 800 manufacturing facilities announced since 2021.
• Latino and Hispanic workers gained 79,000 new jobs, representing nearly one-third of new energy jobs.
• The clean energy workforce remains younger than the national average, with 29% of workers under 30.

Challenges Facing the Cleantech Workforce in 2024

Talent Shortage: An Ongoing Issue

Despite the industry’s promising growth, a significant challenge persists: the talent shortage. With the U.S. unemployment rate hovering at a historic low of 3.4 percent in 2024, companies are struggling to fill vital roles, particularly in technical fields. The shortage threatens to slow the transition to a clean energy economy, as the demand for skilled workers outpaces supply.

The solar industry continues to face a pronounced labor shortage, with over 90 percent of companies reporting difficulties in recruiting qualified talent. The challenges stem from a small applicant pool, increased competition, and insufficient worker training in critical technical skills. Wind energy companies, too, face similar hurdles. 

A 2023 McKinsey report projects that, by 2030, the global cleantech industry will need an additional 1.5 million blue-collar workers to develop, construct, operate, and maintain renewable energy infrastructure. 

Skilled trades like construction laborers, electricians, and equipment operators will be in high demand, alongside 1.9 million white-collar workers including project developers, engineers, and finance professionals.

Closing the Skills Gap

As the transition to clean energy takes place, leaders are identifying opportunities for workers to transfer their skills from other industries to assist with proactive talent development. 

For instance, construction workers, electricians, and engineers can shift into cleantech with relatively minimal retraining. Additionally, the Building Skills for a Clean Economy report emphasizes that many key competencies in cleantech overlap with traditional industries, making it easier for professionals to transition into the sector.

Higher education institutions are stepping up to meet demand, with more universities offering specialized courses in renewable energy engineering, sustainability management, and cleantech entrepreneurship. These programs are designed to cultivate the next generation of cleantech leaders, equipping students with the skills needed to navigate a rapidly evolving energy landscape.

Strategies for Future Talent Development

Creating Clear Career Pathways

To attract and retain talent, cleantech companies are focusing on creating clear career pathways. By offering structured career advancement opportunities and mentorship programs, organizations can ensure that employees understand how their roles contribute to long-term company goals. Such strategies also improve job satisfaction, enhance employee retention, and foster leadership development within the organization.

Engaging Local Communities

Grassroots recruitment efforts have proven effective in bringing new talent into the cleantech sector. Community-focused initiatives, such as partnerships with vocational schools, colleges, and trade programs, are expanding the talent pool. Cleantech companies are increasingly hosting job fairs, internships, and apprenticeships, targeting students and early-career professionals with a passion for environmental sustainability.

Organizations are also investing in underrepresented groups, fostering diversity in the workforce. By actively recruiting women, minorities, and veterans, companies are building a more inclusive cleantech industry.

Looking Ahead to 2025 and Beyond

As we head toward 2025, the cleantech workforce landscape will continue to evolve. The industry’s rapid growth will continue to create millions of jobs, with an emphasis on green manufacturing, clean transportation, and renewable energy development. However, closing the skills gap remains critical to sustaining this growth.

To meet future workforce demands, organizations must:

• Accelerate workforce development initiatives: Companies need to partner with educational institutions, trade organizations, and local governments to expand training programs that equip workers with the necessary skills.
• Invest in upskilling and reskilling: Providing ongoing training opportunities for current employees ensures that the workforce remains adaptable to new technologies and evolving industry needs.
• Leverage technology and innovation: Embracing digital tools like AI, automation, and data analytics can enhance operational efficiency and reduce labor shortages in certain areas of the cleantech industry.
• Cultivate a diverse workforce: Expanding recruitment efforts to include underrepresented demographics will help bridge the talent gap while fostering innovation and inclusivity.

By implementing these strategies, the cleantech sector will be better positioned to meet the growing demands of a clean energy economy in 2024 and beyond. 

How Clean Energy Companies Can Partner with Acara to Tackle Recruitment Challenges

For clean energy companies navigating the complexities of workforce management, partnering with talent acquisition experts like Acara can provide a competitive advantage. With over 65 years of experience, Acara offers innovative staffing solutions to support the growing needs of the clean energy and advanced manufacturing sectors. Their specialized offerings, including Master Vendor Programs (MVP) and Recruitment Process Outsourcing (RPO), provide a streamlined, strategic approach to addressing staffing needs while optimizing operational costs.

Maximizing Efficiency with Master Vendor Programs (MVP)

Acara’s MVPs are designed to simplify and centralize the hiring process by consolidating vendor management under a single system. For companies facing talent shortages and tight timelines, this solution provides a reliable pipeline of qualified candidates while reducing administrative complexity. By ensuring consistent quality control and simplifying communications across all recruitment activities, MVPs can reduce time-to-fill and minimize vendor-related expenses. In fast-growing industries like clean energy, having such a structured approach can make a significant impact on productivity and workforce readiness.

Centralizing recruitment efforts also allows companies to benefit from enhanced visibility into vendor performance. This enables data-driven decisions that align with specific hiring needs and workforce planning strategies, particularly critical in sectors that demand technical proficiency and specialized certifications.

Read our recent E-Book – Master Vendor Programs (MVP): The Key to Your Contingent Workforce’s Success 

Leveraging Recruitment Process Outsourcing (RPO)

For more comprehensive staffing needs, Acara’s RPO services offer an end-to-end solution. By taking over some or all of a company’s recruitment functions, Acara helps build robust talent pipelines for specialized roles that are often hard to fill. In the clean energy industry, where scaling operations quickly is key to meeting demand, RPO allows companies to adapt to fluctuating staffing needs while reducing the costs typically associated with in-house recruitment.

Acara’s RPO model also helps streamline the hiring process, improving candidate experiences and strengthening employer branding. In a competitive job market, these aspects are crucial for attracting and retaining top-tier talent, ensuring long-term workforce stability.

View our partner Broadleaf’s latest infographic – Three Types of Recruitment Process Outsourcing 

Driving Cost Savings and Operational Agility

By utilizing Acara’s MVP and RPO services, companies can achieve significant reductions in vendor spend through streamlined processes and consolidated billing. This cost efficiency enables businesses to reinvest in essential areas like training, development, or expansion. With a single point of contact for all hiring needs, organizations can increase operational agility and focus on their core activities without being bogged down by vendor management.

In the clean energy sector, where rapid technological advancements and shifting market demands are constant, these solutions allow companies to remain flexible and responsive, all while maintaining a strong, diverse workforce.

Companies that prioritize workforce development today will be at the forefront of driving the global energy transition for decades to come.

Ready to speak to Acara to learn how we can assist you with your contingent labor needs? Contact us today.