Will the Middle East Crisis Accelerate Asia-Pacific's Transition to Green Energy Jobs?

The ILO cautions that employment growth in emerging industries will not automatically compensate for jobs lost in sectors undergoing restructuring.

The ongoing Middle East crisis could bring major changes to employment across Asia and the Pacific as governments look for ways to reduce dependence on imported fossil fuels and strengthen their energy security. A new report from the International Labour Organization (ILO) suggests that growing investment in renewable energy, electricity storage and cleaner technologies could create substantial employment opportunities, though workers in traditional energy industries may face job losses or changing employment conditions.

The ILO brief, The Middle East Crisis, Energy Security and Just Transition in Asia-Pacific: Labour Market Implications, examines how disruptions to energy supplies could influence investment decisions, employment patterns and workforce requirements across the region. It highlights the growing importance of diversifying energy sources and developing policies that protect workers and communities during the shift towards cleaner energy systems.

The report also raises concerns about unequal access to emerging job opportunities, particularly because new positions may require different technical skills or be concentrated in locations far from communities experiencing employment losses. Governments will need to connect energy investment plans with workforce training, employment support and social protection measures to ensure that economic changes benefit a broader section of society.

Renewable Energy Expansion Could Create New Employment Opportunities

The Middle East crisis has exposed the vulnerability of Asia-Pacific economies that depend heavily on imported oil, gas and other fossil fuels, encouraging governments to reconsider how they secure reliable and affordable energy supplies. Greater investment in renewable energy generation, battery storage, electricity infrastructure and electrification could reduce exposure to international fuel supply disruptions and create demand for skilled workers across several industries.

Engineers, electricians, construction workers, equipment installers, technicians and operations and maintenance professionals are among the occupations expected to benefit from expanding clean energy infrastructure. These employment opportunities could emerge across renewable energy projects, electricity networks and related industrial activities.

The ILO cautions that employment growth in emerging industries will not automatically compensate for jobs lost in sectors undergoing restructuring. Workers affected by declining fossil fuel activities may live in different regions, possess different qualifications or face difficulties accessing the new opportunities.

Workforce Training Becomes Essential for a Fair Energy Transition

The report's central recommendation is to integrate employment considerations into national energy security strategies from the earliest stages of planning, rather than treating workforce challenges as a separate issue after investment decisions have been made.

Closer coordination between energy, industrial development, employment, education and social protection policies could help governments identify which industries are likely to expand, which occupations may change and which communities require additional support.

Reskilling programmes can help workers move into new industries, and upskilling initiatives can strengthen the capabilities of employees whose existing jobs are changing because of new technologies. Employment services, job matching programmes and mobility assistance could also improve access to emerging opportunities.

The ILO identifies women, young people and informal workers as groups requiring particular attention because they may face additional barriers to training, formal employment and career advancement.

Tuomo Poutiainen, ILO Deputy Regional Director for Asia and the Pacific, emphasised that expanding clean energy investment could create valuable employment opportunities, but differences in job locations, skills requirements and working conditions would need to be addressed to ensure a fair transition.

Job Quality and Social Protection Need Greater Attention

Creating more jobs is only one part of the employment challenge associated with the energy transition, as the ILO also emphasises the importance of adequate wages, safe workplaces, social protection and respect for workers' rights.

New energy industries will need employment standards that provide reasonable working conditions, occupational safety and health protections, and opportunities for stable livelihoods. Without these safeguards, expanding clean energy investment may increase employment without delivering the quality of work needed to improve workers' lives.

Social protection systems also have an important role in helping households manage rising energy, food and transport costs associated with international supply disruptions. Income support, unemployment protection and assistance during retraining can reduce the financial pressure experienced by workers moving between occupations.

These protections are particularly important in Asia and the Pacific, where nearly two-thirds of employment remains informal, leaving many workers without comprehensive access to employment benefits or income security.

Small Businesses and Regional Cooperation Key to Employment Stability

The ILO brief calls for targeted support for micro, small and medium-sized enterprises, recognising their importance in employment creation and their potential difficulties in adapting to changing energy costs and technologies.

Smaller businesses may need financial assistance, technical guidance and access to workforce development programmes to participate in renewable energy supply chains and maintain competitiveness during the transition.

Stronger cooperation between countries could also help governments respond to shared energy security challenges, exchange information about emerging skills requirements and develop more coordinated approaches to employment protection.

The report places particular importance on social dialogue involving governments, employers' organisations and workers' representatives. These discussions can help identify employment risks, determine training priorities and develop practical measures for supporting industries and communities affected by economic restructuring.

The ILO's findings underline that a faster shift towards cleaner energy could strengthen energy security and create new jobs across Asia and the Pacific, but employment benefits will depend heavily on how governments manage the transition. Investing in workforce skills, improving social protection and maintaining decent employment standards will be essential to ensuring that workers and businesses can adapt to changing energy markets without leaving vulnerable communities behind.