The renewable energy landscape is undergoing a transformation driven by technological advancements and shifting workforce dynamics. While the sector continues to expand, the pace of job creation is being influenced by automation and increased productivity, reshaping the demand for skills in this field.
According to the ILO’s Renewable Energy and Jobs: Annual Review 2025, the sector employed 16.6 million people in 2024, a slight rise from the previous year’s 16.2 million. Solar photovoltaic (PV) technologies lead the job market with 7.2 million positions, followed by biofuels at 2.6 million, hydropower at 2.3 million, and wind energy at 1.9 million. Other renewable sectors, such as heat pumps and solar heating, contribute 2.6 million jobs globally. However, increased labor productivity and automation, especially in China, which holds 44% of the sector’s jobs, are slowing overall employment growth.
The ILO report states, “The transition to a sustainable energy model is entering a new phase where technological efficiency can outpace workforce growth.” Countries like China, the European Union, Brazil, India, and the United States are leading in the sector. Meanwhile, Southeast Asian countries, including Vietnam, Malaysia, and Thailand, are emerging as significant players in solar manufacturing, supplying markets such as the United States to avoid tariffs. Trade barriers and overproduction in China have led to significant workforce reductions, with some companies cutting up to 31% of staff in 2024 to curb financial losses.
In Mexico, the corporate sector is increasingly turning to solar energy, driven by the need for cost stability and sustainability, as noted by Juan Alberto Miranda, CEO of Solar Change. With an average daily irradiation of 5.5–6.5kWh/m², Mexico is positioned as a favorable market for solar energy. By 2024, the country had installed 11.99GW of solar PV capacity, with contributions from distributed systems and utility-scale projects.
Despite this growth, regulatory challenges hinder the sector’s progress. Slow permitting processes, lengthy interconnection approvals, and a cap on distributed generation systems are among the obstacles. Miranda suggests reforms such as increasing net-metering thresholds, establishing digital approval portals, and creating fiscal incentives to boost growth, which could stimulate job creation in installation, maintenance, and engineering fields.
The Mexican Council for Financial and Sustainability Reporting Standards (CINIF) introduced new Sustainability Reporting Standards (NIS) in 2025, demanding that companies report on various environmental, social, and governance metrics. According to Patricia Moles, Member of the Issuing Council, CINIF, these standards aim to enhance transparency and promote sustainable business practices, although small and medium-sized enterprises may face challenges in data management.
Corporate sustainability commitments are on the rise. A Grant Thornton Mexico survey indicates that nearly half of companies plan to increase sustainability investments in 2025, focusing on renewable energy, carbon reduction, and efficiency improvements. Despite advancements in gender equity, challenges remain in leadership roles and wage gaps.
As Mexico’s energy sector evolves, specialized training in renewable technologies and digital skills becomes crucial for supporting the country’s transition. Lorena Lara, Human Resources Director, AES México, emphasizes the need for talent development to align with international commitments such as COP28 and the UN Sustainable Development Goals.
Technological progress is also reshaping Mexico’s job market. A study by Endeavor and Santander, titled “Megatrends: A Guide to the Technologies Revolutionizing 2024”, highlights sectors like AI, cleantech, and the metaverse as key drivers of investment and employment. These innovations complement Mexico’s renewable energy efforts by diversifying its innovation ecosystem.
Global labor trends further impact Mexico’s workforce. The World Economic Forum’s Future of Jobs Report 2025 notes that as high-income countries face workforce shortages due to aging populations, automation and digitalization are creating new roles that require specialized skills, emphasizing the importance of reskilling and strategic workforce planning.
Mexico’s path in renewable energy, sustainability, and technology presents both opportunities and challenges. Addressing regulatory delays, investing in human capital, and aligning with international standards will be critical in leveraging these sectors for economic growth and sustainable development.
Original Story at mexicobusiness.news