Global skills crisis deepens as demand for technical workers outpaces graduates
A new IEA report shows global demand for applied technical workers is rising nearly twice as fast as graduate supply, straining energy firms and exposing skills gaps in countries like Kenya.
A growing gap is emerging between the rising demand for skilled technical workers and the number of graduates entering these fields, a new report has found.
Findings by the International Energy Agency (IEA) show that global, economy-wide demand for applied technical workers is growing at almost twice the pace of graduate supply.
“Economy-wide demand for applied technical workers grew 16 per cent between 2015 and 2022, yet graduations from relevant vocational programmes increased by only nine per cent,” the report states.
“These shortages are most acute in applied technical roles.”
The energy sector offers the clearest illustration of how this gap is unfolding.
Shortages directly affecting energy firms
The IEA says shortages in applied technical roles are now directly affecting energy firms, making recruitment more difficult and intensifying competition for skilled workers.
Nearly half of the companies surveyed said they were increasingly hiring from neighbouring industries or expanding in-house training to bridge skills deficits.
Applied technical roles account for more than half of the global energy workforce — twice their share in the wider economy — and demand for these occupations continues to accelerate.
Since 2019, employment in these roles has grown by 2.5 million, with electricians, pipefitters, electrical power-line workers and nuclear engineers among the most constrained professions.
Many of these occupations are also experiencing shortages outside the energy sector, compounding the challenge.
The report warns that without urgent intervention, the skills imbalance could worsen sharply by 2030.
To meet projected demand, the number of graduates entering energy-related training programmes would need to increase by about 40 per cent globally, and even more under pathways aligned with net-zero emissions by 2050.
The IEA estimates that achieving this expansion would cost around $2.6 billion (Sh336 billion) per year.
Global skilled-worker shortage
These findings come amid a broader global skilled-worker shortage, particularly in developing countries.
In Kenya, a recent Skills Gap and Gender Analysis Report by recruitment firm BrighterMonday found a widening skills-to-work gap, with 62.1 per cent of employers citing mismatches between graduate skills and labour-market needs.
Among employers who identified a gap, the most commonly reported deficiency was inadequate digital skills, cited by 61.1 per cent of respondents.
This was followed by a lack of relevant experience (55.6 per cent) and gaps in technical knowledge (44.4 per cent).
Other concerns included poor work readiness (27.8 per cent) and broader issues such as lack of confidence or the absence of market-relevant technological training in education curricula (11.1 per cent).
Overall, the findings highlight how digital exclusion, outdated curricula and gender inequalities continue to limit employability for many Kenyans.
At the same time, the IEA’s report underscores a deepening structural imbalance: economies are creating technical roles far faster than education systems are producing qualified workers to fill them.
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