The energy and utilities sector as defined by Energy & Utility Skills, Sector Skills Council, includes:

• Electricity
• Gas (upstream and downstream)
• Water
• Waste Management

There are an estimated 528,700 employees in the energy and utilities sector across the UK.  Employment within the sector as a whole has fallen substantially over the last two decades and is predicted to reduce by a further 5% between 2004-2014.  The waste management industry has, however, grown as a result of increasing environmental pressures.

There are approximately 10,000 VAT registered businesses in the sector (excluding downstream gas), 85% of which employ less than 10 people.  The vast majority of sector employees do, however, work for a small number of large employers.

The need to replace workers who retire or leave the sector means that there will be a demand for approximately 150,000 new entrants up to 2014.  The greatest demand will be among skilled trades occupations (Level 3) followed by managers, and transport and machine operatives.

The West Midlands and North West regions account for the largest shares of the UK energy and utilities workforce, both responsible for approximately 11% of total employees.  Northern Ireland has the smallest national and regional share, accounting for just 3% of all sector employees.

The sector workforce has a similar qualifications profile to the all-sector average.  However, across all four nations the waste management industry has the highest percentage of its workforce lacking any qualifications. 

The sector carries out a significant amount of in-house training, which is generally unaccredited.  Given the high level of productivity of the sector compared to the UK, it appears that the sector productivity performance may be driven, at least in part, by the in-house training.

Northern Ireland has the least ethnically diverse workforce, with 99% of workers coming from a White British/Irish background.  Women also make up a significantly smaller percentage of the workforce in all four industries than the all-sector average.

Just under a quarter of employers have recently recruited a young person direct from school, college or university.  Skills gaps amongst young recruits centre on their attitude, lack of experience and inadequate people skills.

Apprenticeships have historically been a significant entry route into the sector.  61% of employers had employed apprentices at Level 2 and 3, and most employers report it relatively easy to recruit new apprentices.  A limited number of Foundation Degrees specific to the sector have been developed.

27.6% of energy and utilities businesses report skills gaps amongst their current workforce, which is higher than the all-sector average.  Skills gaps appear to have become more acute in the areas of IT professional skills, management and numeracy.

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Energy and utilities sector summary

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