Employment

Employment in the utilities sector (including electricity, gas and water) declined in most countries during the last decade. The exceptions are some developing nations, which are increasing their energy capacity, but in those countries, too, jobs are likely to be reduced in the future with increased deregulation, liberalization, privatization and the introduction of new technologies. In the United States, the employment declined from 1.512 million in 1995 to 1.468 million in 2002, while in Japan it decreased from 420,000 to 340,000 for the same period. In Italy it was down from 206,000 in 1995 to 161,000 in 2003, while in Norway, it declined from 313,000 in 1996 to 264,000 in 2004. In Switzerland the employment level of 26,000 in 1995 was unchanged in 2004. In the U.K. it declined from 223,100 in 1995 to 179,700 in 1997, after which it recovered to 216,900 in 2002, but declined again to 179,500 in 2004. In some industrialized countries employment declined but recovered a little in recent years, as in Austria, Denmark, Germany, Ireland and the Netherlands, . In Austria, for example, it was down from 37,500 in 1995 to 29,900 in 2000 but recovered to 34,800 in 2003. In Denmark, it declined from 16,100 in 1995 to 13,500 in 2001, but recovered to 15,900 in 2004. In Germany, it declined from 359,000 in 1995 to 282,000 in 2001, but recovered slightly to 296,000 in 2004. In Ireland, it was down from 13,300 in 1995 to 11,500 in 2000 but increased to 13,600 in 2004. In the Netherlands, it decreased from 43,000 in 1995 to 34,000 in 2001 but recovered to 38,000 in 2002 (ILO, 2005: Yearbook of Labour Statistics). Despite some employment recovery seen in some industrialized countries in recent years, the total employment level in these countries is still lower than what it was several years ago.

As stated above, many developing countries saw a growth in employment in the utilities sector during the last decade, but also experienced a decline in recent years with increased deregulation and the use of new technologies. In Barbados, for example, it increased from 1,000 in 1995 to 2,000 in 2001, but declined to 1,800 in 2004. In Columbia it climbed from 36,700 in 1995 to 87,900 in 2001, but declined to 74,200 in 2004. In Jamaica it increased from 1,400 in 1995 to 1,800 in 2000, but was down to 1,700 in 2004. In Indonesia it increased from 216,000 in 1995 to 233,000 in 1997, but declined to 178,000 by 2002. In the Philippines it increased from 103,000 in 1995 to 141,000 in 1999, but was down to 116,000 in 2000. Many other developing countries show a similar trend, but in China it climbed from 2.58 million in 1995 to 2.9 million in 2002 (ILO, 2005: Yearbook of Labour Statistics).

Technological advances will limit future employment growth as capacity increases. Natural gas power plants are being built more quickly, but these often require fewer workers to operate and maintain them. Technological advances in meter reading are also inhibiting job growth in this labour-intensive activity. As multinational enterprises vertically integrate and diversify into other utilities, they consolidate activities, requiring fewer workers. The Untied States Department of Labor reports that approximately 13,000 of 49,000 meter readers will lose their jobs by 2010. However, an increase in renewable energy has created some employment, as renewable technology is more labour intensive.

The age profile of the sector is increasing in a number of countries and there is a severe gender imbalance in some disciplines, which makes human resource planning by employers an even greater challenge in view of fewer skilled labour market entrants in the future. As technology is often beneficial to improving efficiency, it can also lead to job loss without replacing it in other areas. However, an adequate level of staffing is still required to ensure efficiency and safety and health at work. Making the industry attractive to young men and women can be means to address the recruiting challenges of replacing an ageing workforce. In addition, establishing national or sector specific training programmes, and investing in workers through apprenticeships and lifelong learning mechanisms can be instrumental in meeting the demands of changing skills needs of the industry.