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.

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.

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. 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.

Statistical data on worldwide employment by economic activity, including the utilities sector, disaggregated by sex, is available in ILO’s LABORSTA database (Yearly Statistics), updated in 2006.