Transforming U.S. Electric Industry Workforce Development
The U.S. electric power industry is facing a workforce crisis due to an aging workforce and declining academic programs in power engineering. This 2019 report identifies possible solutions.
Challenge
The aging energy workforce, declining STEM interest, and limited workforce training programs are creating a skills gap in the power industry.
Approach (Methodology & Analysis)
1. Workforce Demographic & Market Analysis
Examined retirement trends, workforce shortages, and hiring challenges across the U.S. electric industry.
Identified utility workforce needs based on projected retirements and future grid modernization efforts.
Assessed the declining pipeline of power engineering students and technical workers entering the industry.
2. Analysis of Hiring Trends & Academic Programs
Tracked historical employment trends, showing a peak in the 1990s followed by downsizing and hiring freezes.
Evaluated the reduction of power engineering programs at universities due to low student demand.
Analyzed the stagnant perception of the energy industry, which has led to talent shifts toward computing and software careers.
3. Proposed Workforce Development Strategies
Reviewed existing DOE workforce programs and their effectiveness.
Proposed short-term and long-term workforce expansion policies, including:
Government incentives for universities to reintroduce power engineering programs.
Public-private partnerships to create specialized training, internships, and apprenticeships.
Retirement deferment incentives to slow the loss of experienced workers.
Evaluated the feasibility of new federal workforce development grants targeting the energy sector.
Key Findings & Insights
The U.S. Power Sector Faces a Critical Labor Shortage
25% of electric utility workers will retire within five years, requiring at least 105,000 new hires by 2030.
In 2014, 10 states faced utility labor shortages, increasing to 12 states by 2018.
Declining University Programs Have Worsened the Talent Gap
Many universities eliminated power systems programs due to low demand, making it harder to train new engineers.
Existing programs lack faculty with power systems expertise, limiting the ability to expand curricula.
Retirement Deferral Programs Could Stabilize Workforce Availability
Providing financial incentives for delayed retirements could reduce workforce attrition.
Knowledge transfer programs could help retain critical industry expertise before retirements accelerate.
Short-Term & Long-Term Policy Solutions Are Needed
Short-Term: Increase industry-academic collaboration to train new workers through accelerated technical training and paid apprenticeships.
Long-Term: Federal workforce grants and university incentives should be expanded to rebuild power engineering programs.