Energy Employment
Although the "Clean Economy" encompasses more than just clean energy, the Energy sector is one of the most common fields discussed in economic and workforce development contexts. With a new article focused on the Energy Sector released in the latest issue of Minnesota Economic Trends, DEED's Green and Clean Employment Series digs into regional and statewide energy employment trends. For more local information on any of these topics, please reach out to your Regional Analyst!
This article, the third in a series on green and clean employment, profiles energy sector employment trends using two common data sources. Three notable trends are: 1) the increasing share of energy employment in Greater Minnesota, 2) the increasing share of energy employment in electric power generation, and 3) the growth in electric power generation jobs located outside of the Utility sector. This article reviews how the shifts Minnesota has already made towards renewable and low-carbon energy sources show up in employment data and discusses how recent state energy policies and initiatives will likely impact future energy workforce demand.
It's time to light up the new year with some fresh energy. Let's take an up-close look at Electric Power Generation in the Twin Cities Metro Area. According to the Census Bureau's North American Industry Classification System (NAICS), Electric Power Generation comprises establishments primarily engaged in - you guessed it - operating electric power generation facilities. These facilities can be broken down by various forms of energy: hydroelectric, fossil fuels, nuclear, solar electric, wind electric, geothermal, biomass, and other electric power generation. In the Twin Cities Metro Area, there were 40 Electric Power Generation establishments supplying just over 1,200 covered jobs in 2023. Total payroll for this industry equaled $146.4 million in 2023, with the average annual wage equal to $120,328.
A small but highly lucrative industry, Central Minnesota is home to approximately 1,400 jobs at 14 establishments in the Electric Power Generation sector, accounting for just 0.5% of the region's total employment. In 2023, the average annual wage for these jobs were impressively just over $132,000, which was about $77,500 higher than the average annual wage across all industries!
A bill recently passed by the Minnesota Legislature set a goal of zero greenhouse gas (GHG) emissions from electricity generation by 2040. In Northeast Minnesota, the push toward cleaner energy generation has taken many forms. The developments receiving perhaps the most attention have been the retirement of the region's coal-fired power plants. Employment impacts from the energy transition may already be discernible. Since peaking in 2014, employment in the Electric Power Generation, Transmission and Distribution sector declined to a low of 1,369 jobs in 2019, before rebounding slightly to 1,430 in 2023.
Electricity demand is predicted to increase 5% over the next 15 years, suggesting that meeting increased demand with a different mix of generation technology would mean shifting energy sector employment. There appears to be shifting below the surface in Northwest Minnesota's Electric Power Generation, Transmission and Distribution industry group. There were 1,183 jobs in 2023, which was little changed from the 1,179 jobs recorded in 2019.
The Utilities industry forms the foundation of daily life in Southeast Minnesota, providing essential services and infrastructure that power homes, businesses, and communities around the clock. Based on the Quarterly Census of Employment & Wages (QCEW) data, this industry provided 1,390 jobs across 50 firms in 2023, generating over $192.6 million in total payroll. The industry's average annual wage of $138,632 was more than twice the regional average across all industries ($63,388), reflecting the high-skill, high-wage nature of utility work.
Southwest Minnesota is a region with significant potential for renewable energy generation, thanks to its vast open spaces and favorable environmental conditions. Over the years, the region has witnessed significant shifts in energy production and clean energy contributions, most notably in Wind Energy. Over the past two decades, regional employment in Electric Power Generation, Transmission and Distribution has increased by almost 100 jobs.
Connecting Entrepreneurial Communities Conference -
March 20-21, 2025 in Virginia, MN
Registration is still OPEN for the SIXTH annual Connecting Entrepreneurial Communities (CEC) conference, which will take place March 20-21, 2025 in Virginia, Minnesota. Last year’s conference brought together over 100 entrepreneurs, business leaders, economic development professionals, decision makers, and community champions. Participants had the opportunity to connect with others who care about entrepreneurship in their region.
LMI TRAINING SESSIONS
Please reach out to your regional analyst if you or your staff would be interested in having a customized LMI training session. We would be happy to accommodate your training requests, either on LMI Data Tools or local economic conditions!
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