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2/19/2025 2:09:52 PM
Anthony Schaffhauser
My previous blog on wind and solar jobs promised a look at a more promising workforce opportunity in Northwest Minnesota: energy efficiency. While projections show a 5% increase in electricity demand over the next 15 years, there's a smart way to meet this growing need that creates local jobs. Like any market, energy has both supply and demand sides. The beauty of energy efficiency is that it tackles the demand side without asking people to sacrifice comfort or convenience. Through better technology and installation practices, we can deliver the same services - heating and cooling, lighting, mechanical power, and electronics - while using less energy input.
What sort of employment impact is energy efficiency having in the Northwest region? Again, I use the US Department of Energy's United States Energy and Employment Report (USEER) to answer this question by tabulating the job change from 2018 to 2023. Unfortunately, as with wind and solar, many counties have less than 10 estimated jobs and are reported as "< 10" for the most recent year of 2023. However, this is less of an issue than with wind and solar where there were only data for three Northwest counties. With a "< 10" value, there may be anywhere from 0 to 9 jobs in that county. So, I will present the job estimates two ways. First, Table 1 excludes counties that have "< 10," presenting the number of jobs and the change from 2018 to 2023 for those counties with job estimates of at least 10.
| Table 1: Energy Efficiency Jobs by Region, Including Only Counties with Ten or More Jobs | |||||
|---|---|---|---|---|---|
| Region | Estimated Jobs | 2018 to 2023
Job Change |
Counties Included (At Least 10 Jobs in Every Energy Efficiency Category) | ||
| 2018 | 2023 | Number | Percent | ||
| Northwest Minnesota | 2,175 | 2,187 | +12 | +0.6% | Becker, Beltrami, Cass, Clay, Crow Wing, Douglas, Morrison, Otter Tail, Polk (9 of 26 counties) |
| Central Minnesota | 4,210 | 4,048 | -162 | -3.8% | Benton, Chisago, Isanti, Kandiyohi, McLeod, Meeker, Sherburne, Stearns, Wright (9 of 13 counties) |
| Northeast Minnesota | 1,788 | 1,695 | -93 | -5.2% | Carlton, Itasca, St. Louis (3 of 7 counties) |
| Southeast Minnesota | 2,654 | 2,519 | -135 | -5.1% | Freeborn, Goodhue, Mower, Olmsted, Rice, Steele, Wabasha, Winona (8 of 11 counties) |
| Southwest Minnesota | 1,363 | 1,280 | -83 | -6.1% | Blue Earth, Brown, Le Sueur, Lyon, Martin (5 of 23 counties) |
| Twin Cities Metro | 29,968 | 28,994 | -974 | -3.3% | Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington (all 7 counties) |
| Statewide Unallocated | 1,219 | 1,153 | -66 | -5.4% | - |
| Source: U.S. Department of Energy, Energy and Employment Jobs Report (USEER). | |||||
Not only are there significantly more energy efficiency jobs in Northwest Minnesota than solar and wind jobs, but the Northwest is also the only Minnesota region that gained jobs from 2018 to 2023. Thus, energy efficiency does provide significant clean energy jobs in Northwest Minnesota.
However, there are only nine counties in the Northwest with 10 or more jobs for each energy efficiency technology category. Since the USEER only provides county job estimates for each of five energy efficiency technology categories, not total energy efficiency jobs per county, if even one county has "<10" jobs for one technology it is excluded. Thus, Table 1 only includes nine (of 26) Northwest counties. However, in 2018, the USEER published the estimates by county even if they were less than 10 jobs. Using that data, I provide a better representation of the number of regional jobs assuming there was no change in jobs from 2018 to 2023 in the counties with "< 10" in 2023. In other words, Table 2 presents the number of jobs in every county, replacing "< 10" values in 2023 with the values in 2018.
| Table 2: Energy Efficiency Jobs by Region, Assuming Counties with "< 10" Reported in 2023 were unchanged from 2018 | ||||
|---|---|---|---|---|
| Region | Estimated Jobs | 2018 to 2023 Job Change | ||
| 2018 | 2023 | Number | Percent | |
| Northwest Minnesota | 3,205 | 3,155 | -50 | -1.6% |
| Central Minnesota | 4,463 | 4,284 | -179 | -4.0% |
| Northeast Minnesota | 1,938 | 1,838 | -100 | -5.2% |
| Southeast Minnesota | 2,916 | 2,762 | -154 | -5.3% |
| Southwest Minnesota | 2,480 | 2,345 | -135 | -5.4% |
| Twin Cities Metro | 29,968 | 28,994 | -974 | -3.3% |
| Statewide Unallocated | 1,219 | 1,153 | -66 | -5.4% |
| Note: See Table 3 for a list of counties by technology that have less than ten estimated jobs and are assumed to have no change from 2018.
Source: U.S. Department of Energy, Energy and Employment Jobs Report (USEER). |
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Table 2 gives us a more complete picture of the magnitude of jobs, since it includes all counties by assuming suppressed values in 2023 stayed the same as their 2018 levels. While Northwest now shows a job decline, it is the smallest decline of any region. More significantly, Table 2 shows the number of energy efficiency jobs is around 45% greater if all counties are included. Northwest and Southwest are most impacted by the lack of data on counties with "< 10" jobs due to the large number of rural counties. The Twin Cities Metro numbers remain the same since it had no counties with "< 10" jobs.
Energy efficiency jobs provide significant opportunity in Northwest Minnesota. While the region showed only slight growth or a small decline from 2018 to 2023 (depending on how one deals with missing job data), this was the most stable employment of any region in Minnesota. More importantly, the occupations involved in energy efficiency work offer strong career opportunities. These jobs typically pay above the region's median wage of $47,362, show faster projected growth than the overall job market, and often require only a high school diploma or postsecondary certificate combined with on-the-job training. This makes them accessible career paths that can provide family-sustaining wages. Table 3 features selected Occupations in Demand in energy efficiency in Northwest Minnesota. Most are in the highest demand with a "Five Stars" indicator.
| Table 3: Selected Northwest Minnesota Occupations in Demand in Energy Efficiency | ||||||
|---|---|---|---|---|---|---|
| Job Title | Current Demand Indicator | Median Wage | 2022-2032 Projected Growth Rate | 2022-2032 Projected Openings | Education Requirements | Training Requirements |
| Maintenance & Repair Workers, General | Five Stars | $50,209/yr | 5.6% | 3,252 | High school diploma or equivalent | Moderate term on the job training |
| Construction Laborers | Five Stars | $49,173/yr | 7.2% | 3,940 | High school diploma or equivalent | Short term on the job training |
| Electricians | Five Stars | $65,524/yr | 9.5% | 1,240 | Postsecondary non-degree award | Moderate term on the job training |
| Plumbers, Pipefitters, & Steamfitters | Five Stars | $59,838/yr | 5.7% | 964 | Postsecondary non-degree award | Long term on the job training |
| Heating, Air Conditioning, & Refrigeration Mechanics & Installers | Four Stars | $61,742/yr | 7.9% | 476 | Postsecondary non-degree award | Long term on the job training |
| Insulation Workers, Floor, Ceiling, & Wall | Two Stars | $52,040/yr | NA | High school diploma or equivalent | Short term on the job training | |
| Source: DEED /deed/data/data-tools/oid/index.jspOccupations in Demand | ||||||
As the region continues to focus on energy efficiency to meet future energy needs, these occupations will remain in high demand, creating valuable employment opportunities for Northwest Minnesota workers.
Contact Anthony Schaffhauser at Anthony.schaffhauser@state.mn.us.
