UK’s Low Carbon Economy Creates Thousands of New Jobs as Energy Efficiency Sector Leads Growth

The UK’s low carbon and renewable energy economy (LCREE) is generating significant employment opportunities, with the Office for National Statistics confirming that energy efficient products remains the largest employment sector within this growing industry. According to the latest LCREE employment data, the energy efficient products group now accounts for 42.8 per cent of total low carbon employment, representing 130,000 full-time equivalent positions across the UK.

The figures underscore Britain’s ongoing transition towards cleaner energy and more sustainable economic activity. The low carbon sector has shown considerable resilience and growth over recent years. Between 2015 and 2023, LCREE employment increased by 56.8 per cent, demonstrating the sector’s expanding role in the UK labour market. In 2023 alone, LCREE employment reached 314,300 full-time equivalents, marking an 11.5 per cent increase from the previous year.

The expansion is particularly pronounced in certain subsectors. The low carbon services group has emerged as one of the fastest-growing areas within the economy, recording a 20.5 per cent increase in employment since 2023. Employment numbers in this group rose from 17,600 full-time equivalents to 21,200, adding roughly 3,600 jobs to the sector. This growth reflects increased demand for specialist advice, consultancy, and support services as businesses and organisations accelerate their transition to lower-carbon operations.

Energy efficient products—which encompasses manufacturing and installation of energy-saving technologies, insulation materials, heat pumps, solar panels, and related equipment—continues to be the dominant employment sector. With 130,000 workers, it represents nearly three-fifths more employment than construction, which remains the second-largest LCREE employment sector. The construction industry itself employed 118,500 full-time equivalents in 2023, representing 37.7 per cent of total LCREE employment, and has seen four consecutive years of growth since 2020.

The sector’s growth reflects both government policy and market demand. Whilst the Office for National Statistics produces these employment figures, the Department for Energy Security and Net Zero has outlined ambitious targets for the clean energy workforce. Government projections suggest that sectors such as solar photovoltaic installation could support up to 35,000 direct and indirect jobs across Great Britain by 2030, indicating further expansion ahead.

Employment growth tells only part of the story. The LCREE sector generated £67.5 billion in turnover during 2023, demonstrating its significance as an economic contributor. When accounting for indirect effects—the employment and turnover generated in supply chains and supporting industries—the economic footprint becomes substantially larger. Indirect LCREE employment was estimated at 153,600 full-time equivalents in 2023, whilst indirect turnover reached £29.2 billion, bringing the total estimated value of the sector to well over £96 billion.

The electricity, gas, steam and air conditioning supply industry generated the highest turnover among LCREE sectors at £20.2 billion in 2023, though this sector employed fewer workers than energy efficient products or construction. This suggests significant productivity and capital investment in energy infrastructure projects.

When considering the wider green economy beyond just low carbon and renewable energy, the employment picture expands further. UK employment in green jobs more broadly was estimated at 690,900 full-time equivalents in 2023, representing a 34.6 per cent increase compared with 2015. This broader definition includes waste management, environmental consultancy, and other sustainability-focused activities alongside the LCREE sectors.

The growth in green employment contrasts with broader economic uncertainty in recent years, suggesting that the transition to a low-carbon economy represents a genuine source of labour demand and economic opportunity. Skills shortages and workforce development have emerged as key challenges for employers within these sectors, with training and education increasingly important to meet growing demand for qualified technicians, engineers, and consultants.

Key Takeaways

• The energy efficient products sector employs 130,000 full-time equivalents, making it the largest employment group within the UK’s low carbon economy, representing 42.8 per cent of total LCREE employment
• Low carbon services employment grew by 20.5 per cent since 2023, rising from 17,600 to 21,200 full-time equivalents, indicating robust demand for specialist advisory and support roles
• The LCREE sector generated £67.5 billion in turnover in 2023, with additional indirect economic activity bringing the sector’s total value to over £96 billion

What This Means for Kent Residents

For Kent’s workforce and businesses, the expansion of low carbon employment represents genuine opportunity. Kent’s strategic location—with major ports at Dover and Folkestone handling goods including renewable energy equipment, proximity to London’s financial services, and established engineering and manufacturing sectors—positions the county well to benefit from low carbon economy growth. Workers seeking career development in emerging sectors should consider training in energy efficiency, heat pump installation, and renewable energy maintenance. Local small businesses and supply chain operators may find opportunities supporting larger contractors and manufacturers operating within LCREE sectors. As business investment in energy efficiency and decarbonisation continues, Kent’s workforce and economy are positioned to participate meaningfully in this sustained sectoral expansion.