The Golden State is a major energy producer and consumer; it is also a leader in the shift toward renewable energy. Changes in the state’s energy landscape have implications for the skilled workers in the sector—both creating and narrowing job opportunities. At a virtual event last week, PPIC researchers discussed new research that focuses on the state’s current and future energy workforce needs, with an eye toward worker mobility and sector innovation.
The energy sector is a major source of jobs across the state, and energy work offers high wages and other benefits. Report coauthor Daniel Payares-Montoya noted that median energy wages are $45 per hour, compared to $26 per hour for California workers overall. These benefits go hand in hand with added risk: “These workers tend to have strong technical skills, carry greater responsibilities, and face more hazards than other workers,” he said.
While oil and gas still account for most of the energy produced and consumed in California, fossil fuels have declined as a share of energy produced and consumed over the past few decades, while as production and distribution of renewable energy has increased.
Payares-Montoya noted that federal policy shifts, technological change, and other factors make California’s continued shift toward renewable sources uncertain. But the energy workforce is already undergoing changes—with some jobs growing and others shrinking. “For example,” he said, “solar installer jobs are projected to grow rapidly, while petroleum pump system operator jobs are expected to decline sharply.”
While many energy jobs are spread across the state, some energy subsectors are tied to specific locales. For example, fossil fuel jobs—including those that are likely to shrink if California continues its shift to renewable energy—are concentrated in parts of the Bay Area and the Inland Empire as well as the Bakersfield metro area.
One of the state’s biggest policy challenges is finding effective ways to mitigate the negative impact of shifts in energy production and consumption on workers and communities. The report identifies a set of alternative jobs with similar skill requirements. For coauthor Sarah Bohn, these findings were encouraging. “I was heartened that in this research we found such alignment between the skills of the fossil fuels workforce and other occupations both within the energy sector and in other parts of the economy,” she said.
However, as Payares-Montoya noted, “wages present a major challenge.” Among the occupations with similar characteristics and skill requirements, 74% pay lower wages than jobs currently held by fossil fuel workers.
A key takeaway is that the state needs to find targeted approaches to supporting both communities and workers affected by these shifts. Bohn noted that policymakers can learn from previous industrial transformations—in coal communities, for example—and Payares-Montoya cited ongoing efforts such as the Contra Costa refinery transition project, which is bringing together a range of stakeholders to focus on job quality and environmental health for workers displaced by the 2020 closure of the Marathon refinery in Martinez. “The results could inform what the state can do in other parts of California,” he said.
