In a year when the tech industry experienced significant layoffs, the climate tech sector stands out as a source of opportunity. It offers a promising future and expects its upward hiring trend to continue through 2024.
Clean energy jobs have grown 10% in the previous two years, surpassing the economy, according to industry association E2. The Bureau of Labor Statistics predicts a 45% increase for wind turbine technicians and 22% for solar photovoltaic installers until 2032.
While startups grappled with challenges in 2023, including closed investor pockets and tough financial decisions, the climate tech sector stands out as actively recruiting, according to a TechCrunch report. For those displaced from the general tech sector, climate tech serves as an appealing pivot, creating a demand for software developers, project managers, and designers.
However, a recognized skills gap presents a challenge. The transition towards climate-friendly jobs requires a shift in skills, reflecting an evolving landscape away from fossil fuels.
This need for reskilling has fueled the rise of climate tech job career sites, including Terra.do, Climatebase, MCJ Collective, and Climate Draft, which provide not only job listings but also networking opportunities, educational resources, and training cohorts.
Venture capital firm Lowercarbon's acquisition of Climate Draft in September underscores the growing significance of these platforms in the climate tech sector.
Government's Involvement in Jobs Demand Spike
Early-stage firms have typically held climate tech positions, but more opportunities and recruiting are predicted in the coming years. This growth will include scientists, engineers, sales, service, and support professionals.
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Climate and environmental initiatives are receiving nearly $800 billion in funding due to these regulations. The climate technology employment market will increase significantly with these regulations.
Job Losses to Continue as the Tech Sector Shifts
CNBC reported that the tech industry saw 260,509 job losses in 2023, according to Layoffs.fyi's December 22 figure, which is roughly 100,000 more layoffs than in 2022.
Tech heavyweights Amazon, Meta, and Microsoft were among 1,175 businesses that cut staff this year. The Federal Reserve's interest rate hikes and fears of an economic slump have hurt the business, which formerly grew rapidly.
A recent Goldman Sachs study has warned that generative AI tools could potentially impact 300 million full-time jobs globally, leading to significant disruptions in the job market, as reported by Business Insider.
McKinsey's analysis supports this claim, projecting that by 2030, approximately 12 million Americans in occupations facing reduced demand may need to switch jobs, with AI automation accounting for 30% of worked hours in the US.
On a positive note, AI job posts on Upwork have increased 1,000% year-over-year due to the rise in AI activity. AI-related skill demand is rising, suggesting that some tech sectors are growing and opportunities are present amid larger concerns.
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