The aging workforce “gap” that threatened the labor pool of U.S. utilities has largely been addressed, according to a new study from the Center for Energy Workforce Development (CEWD), but a young and under-experienced workforce introduces a whole new set of problems, and turnover is at its highest point since the survey began in 2006.
The 2023 Energy Workforce Survey is the tenth bi-annual edition of the survey, which has been conducted since 2006 to explore trends in the size of the energy workforce, demographic composition, forecasted retirements, and attrition data.
Earlier versions of the survey showed an aging workforce and the potential for “significant” retirements to come, CEWD said, resulting in a lack of younger workers and skilled labor ready to fill the roles. Recent surveys show that the workforce has stabilized, CEWD said, which could suggest that focus can shift to the “composition of the workforce in terms of skills and diversity, as well as improving retention of existing energy workers.”
CEWD said 41 electric and natural gas utilities participated in the survey, with almost 315,000 jobs represented, accounting for over half of all utility jobs in the country. The analysis is focused on four job categories: lineworkers, technicians, plant/field operators, and engineers. However, since 2021 CEWD now also separately tracks “emerging technology” jobs, such as data scientists and solar, wind, storage, and electric vehicle engineers.
There were four key findings in this year’s survey:
- The aging workforce “gap” has been addressed and replaced with the new challenge of developing a younger workforce
- Emerging technology jobs show “significant” growth, although still a small portion of the overall workforce
- Non-retirement attrition is higher post-covid
- Participants showed a “relatively high” adoption of Diversity, Equity, and Inclusion (DE&I) practices
Aging workforce “gap”
CEWD says it has seen a “consistent” progression towards a younger workforce since beginning the survey in 2006. It cites industry efforts related to energy education pathways in high schools, community colleges, and universities as partially responsible for increasing the talent pool. Millennials are now the largest category of industry employment by generation, the CEWD said.
While one problem seems to have been mostly solved, another has taken its place, CEWD says. The “dramatic” transformation of the makeup of the workforce has resulted in higher percentages of younger and less-experienced employees. CEWD’s survey found that 56% of overall workers have less than 10 years of service, a number that is even higher in certain job categories, with engineers and line workers both above 60%.
CEWD says the industry will need to redirect some of its focus from recruitment to training, mentorship, and other development programs for its younger workforce.
Emerging technology jobs
The 2023 survey represented the second time CEWD has collected data on emerging technology jobs, which it says is a significant growth area. In the survey, emerging technology jobs are defined as positions involved in the generation and distribution of electrical energy generated by renewable means, advanced metering, advanced utility or utility of the future, the development of advanced statistical models, machine learning models, artificial intelligence applications, and electric vehicle fleet management and maintenance.
These jobs are still a small portion of the overall workforce at 2.6%, but their share has increased 4 times from 2021 to 2023.
While some may assume that these jobs are being filled by younger workers, CEWD says the opposite may be the case. A significant portion of emerging tech workers are in the mid- to late-career age ranges, which CEWD says suggests that people with experience are moving into these roles, and they are not only being filled with young workers.
The implications of this data, CEWD says, include a likely continued decline in existing generation jobs, although some may be repurposed as retiring coal plants are converted to natural gas or other purposes like solar and storage, or small modular nuclear reactors. While generation jobs are expected to decline, CEWD says growth in emerging tech jobs may be able to offset this.
Attrition post-COVID
As the second survey conducted since the start of the COVID-19 pandemic, CEWD says the 2023 edition is the first opportunity to analyze its potential lasting impacts on the energy workforce. The survey showed that non-retirement attrition and total attrition have both increased significantly in the last two years, and in 2022 hit their highest levels since the survey began with non-retirement attrition hitting 7.2%. Hiring to replace leaving workers is also at an all-time high, CEWD said.
CEWD says it is too early to determine whether this data reflects a “new normal,” or if they are just indicating natural adjustments after a period of very low turnover during the height of COVID. However, if it does turn out to be a lasting trend, CEWD says the industry will need to increase its focus on or improve retention efforts and programs.
Diversity, equity, and inclusion
The 2023 survey was CEWD’s first effort to collect and analyze demographic data and information on DE&I policy implementation. The survey asked participating companies to report on their adoption of 13 different DE&I practices, with choices ranging from “currently in place” to “no plans to implement.” CEWD says it saw favorable adoption with nine of those practices in place at 75% or more of participating companies.
Practices with the highest adoption were related to having established strategies, goals, and programs to attract diverse talent, while practices with the lowest adoption were related to board training and incorporating DE&I goals into performance evaluations and executive pay plans.
The survey found that adoption of DE&I practices is typically higher among larger companies with more than 2,500 employees, companies with nuclear operations vs. those without, and companies that reported having an established DE&I leader.
Additionally, 25% of the workforce is female, up from 22% in 2021 when a large dip occurred, which CEWD says was likely due to the pandemic; 23% of the workforce “identifies as a racial and/or ethnic identity,” down from 24% in 2021; and veterans represent 11% of the workforce, up from 8% in 2021.
