The Impact of the Energy Transition on the German Labor Market

The energy transition represents a complex process of gradual phase-out of fossil fuel use towards renewable energy sources. These changes in the power sector have a direct impact on various aspects of the economy, including the labor market. Germany, as a world leader in sustainable development, is currently facing both advantages and disadvantages of this transformation. Although there is a slight doubt that a positive correlation between the energy transition and workforce sector exists, it is quite complicated to provide an accurate assessment of this interrelation. This study aims to estimate the dynamics of how the renewable energy consumption affects different indicators of the German labor market, among which are employment and unemployment rates, job creation rates, wage trends, labor mobility, education and business formation rates, and other socio-economic factors. The paper will be divided into two parts: fundamental and econometric. The fundamental section will plan to consider Germany’s general policy in the framework of renewable energy sources and determine the timelines for completing the energy transition. The econometric evidence base will be made using methods such as panel regression. The conclusions of this research intend to make up some appropriate strategies for the development of the German labor market in the context of the changing dynamics of the energy sector. Keywords: energy transition, renewable energy sources, economic stability, labor market, employment trends, green jobs