Renewable Jobs Grow Amid Automation, Friction

The renewable energy sector, which employs millions of people across the world, is growing steadily. However, job growth in the sector is slowing due to automation, higher productivity, and economies of scale. This is expected to lead to fewer low-skill jobs but stronger demand for specialized, technical, and digital skills, potentially reshaping the job market across the sector.

The renewable energy sector generated 16.6 million jobs in 2024, marking a modest increase from 16.2 million in 2023, according to the ILO’s Renewable Energy and Jobs: Annual Review 2025. Solar photovoltaic (PV) technologies continue to be the largest employer, supporting 7.2 million jobs worldwide, followed by biofuels at 2.6 million, hydropower at 2.3 million, and wind energy at 1.9 million. Other sectors, including heat pumps, solid biomass, and solar heating, account for 2.6 million jobs. Despite record capacity additions, overall employment growth in renewables is slowing due to rising labor productivity, automation, and economies of scale, particularly in China, which accounts for nearly 44% of global renewable energy jobs.

“The transition to a sustainable energy model is entering a new phase where technological efficiency can outpace workforce growth,”  notes the ILO report. Regions such as China, the European Union, Brazil, India, and the United States dominate the sector, while Southeast Asian nations including Vietnam, Malaysia, and Thailand are emerging as key solar manufacturing hubs, supplying markets like the United States to bypass tariffs. Trade restrictions, tariffs, and overproduction in China are reshaping global supply chains, with some Chinese solar firms reducing workforces by up to 31% in 2024 to manage financial losses.

Mexico’s corporate sector is increasingly adopting solar energy, motivated by cost stabilization and sustainability commitments, writes Juan Alberto Miranda, CEO, Solar Change. The country benefits from average daily irradiation of 5.5–6.5kWh/m², positioning it among the world’s most favorable solar markets. As of 2024, Mexico had installed 11.99GW of solar PV capacity, including 1.09GW of distributed systems and 523MW of utility-scale projects. Over the past decade, corporate rooftops, manufacturing plants, retail chains, and hospitality venues have contributed significantly to this growth.

Despite these advances, regulatory bottlenecks limit the growth of the sector. Permitting processes remain slow, interconnection approvals can take weeks or months, and distributed-generation systems face a 500kW eligibility cap. Miranda recommends expanding net-metering thresholds to at least 1MW for commercial and industrial users, implementing digital one-stop portals for federal, state, and municipal approvals, creating region-specific fiscal incentives, and standardizing interconnection standards to reduce technical complexity. These reforms are expected to accelerate corporate solar adoption, stimulate domestic manufacturing, and create jobs in installation, maintenance, and engineering.

The Mexican Council for Financial and Sustainability Reporting Standards (CINIF) introduced Sustainability Reporting Standards (NIS) in 2025, requiring companies that file financial statements to report environmental, social, and governance metrics. These include greenhouse gas emissions (Scopes 1, 2, and 3), renewable energy usage, water consumption, waste management, human capital indicators such as training hours and wage gaps, and corporate governance. Patricia Moles, Member of the Issuing Council, CINIF, says the standards increase transparency, enable informed investment decisions, and strengthen sustainable business practices. She notes that adoption may pose challenges for SMEs, particularly in collecting, analyzing, and verifying data, but digital tools and AI can optimize processes and reduce reporting burdens.

Corporate commitment to sustainability is increasing. A Grant Thornton Mexico survey found that 49% of companies plan to increase sustainability investments in 2025, prioritizing renewable energy (58%), carbon reduction (34%), recycled content (33%), digitalization for efficiency (32%), and waste reduction (32%). Companies cited maintaining brand reputation, staying competitive, accessing financing, and responding to social pressure as key motivations. Gender equity is also advancing in the corporate sector. Women now comprise 51% of the workforce and hold 45% more board positions than in 2022, though leadership roles remain male-dominated and wage gaps persist. Initiatives by the Mexican Banking Association and the Interinstitutional Committee for Gender Equality in Financial Entities aim to address these gaps through mentorship programs, leadership development, and workplace inclusion plans.

Human capital in Mexico’s energy sector is evolving alongside technological transformation. Lorena Lara, Human Resources Director, AES México, says specialized training in renewable technologies, digital skills, and sustainability practices is essential for the country’s energy transition. Investments in talent development help drive innovation, operational efficiency, and alignment with international commitments such as COP28 and the UN Sustainable Development Goals, including affordable and clean energy (SDG 7), decent work and economic growth (SDG 8), and climate action (SDG 13). Human capital also plays a central role in resource management, disaster prevention, and emergency response, making training and adaptability critical for operational safety and long-term growth.

Technological innovation is further reshaping Mexico’s labor market. The “Megatrends: A Guide to the Technologies Revolutionizing 2024” study by Endeavor and Santander identified AI, gaming, cleantech, the metaverse, open economy solutions, and biohacking as pivotal sectors driving investment and job creation. AI leads the expansion, with over 330 active companies generating jobs and attracting investment. Cleantech startups focus on renewable energy and environmental solutions, contributing to the green economy. Early-stage metaverse companies are creating roles in virtual and augmented reality, while biohacking ventures in genomics and synthetic biology are developing new health and wellness innovations. These sectors complement Mexico’s renewable energy efforts by diversifying the country’s innovation ecosystem and strengthening its position in the global green and technology economy.

Global trends also influence Mexico’s labor dynamics. The World Economic Forum’s (WEF) Future of Jobs Report 2025 notes that aging populations in high-income countries are creating worker shortages, while younger populations in lower-income regions are entering the labor market in large numbers. Automation, AI, and digitalization are increasing demand for specialized skills, while the shift to sustainable economies is creating new roles in renewable energy, EVs, and environmental management. Flexible work arrangements and remote employment continue to reshape labor participation, underscoring the need for reskilling and strategic workforce planning.

Mexico’s trajectory in renewable energy, corporate sustainability, human capital, and technology highlights both opportunities and challenges. Expanding solar adoption, implementing modernized regulatory frameworks, integrating sustainability reporting, investing in workforce development, and supporting emerging technology sectors can position the country as a leader in the global green transition. However, regulatory delays, capital constraints, and talent shortages remain obstacles. Addressing these issues through coordinated policies, investment in human capital, and alignment with international standards will be essential to leverage renewable energy and technology as drivers of economic growth, emissions reduction, and social development.