U.S. coal production and employment in the third quarter of 2022 grew slightly year over year, although the improvements failed to pull the industry from a slump driven by pressure for power producers to switch to renewable energy.

Coal production in the U.S. totaled 153.9 million tons in the third quarter, a 3.8% increase compared to the prior-year period and a 5.6% jump from the previous quarter, according to S&P Global Market Intelligence data. Sector employment expanded 8.4% year over year to average 43,755 workers, while quarterly improvements were minimal at less than 1%. Both production and employment are down compared to most of the 2010s as coal has come under pressure from the increasing use of natural gas and renewables.

The employment figures included in the Market Intelligence data do not include many other workers who depend on the coal sector, including contractors, transportation services and other parts of the coalfield economy.

The U.S. Energy Information Administration has said it expects U.S. coal production to peak in 2022 at 595.3 million tons as demand from Europe surges, stimulating cash flow for the industry and driving hiring efforts.

Coal mine production and employee counts rose year over year for the northern Appalachia, central Appalachia and Illinois Basin regions.

The Illinois Basin, which is mostly spread over southern Illinois, western Kentucky and western Indiana, experienced the largest annual growth in coal production, increasing 14.5% to 19.4 million tons in the third quarter from 16.9 million tons in the same period of 2021. Northern Appalachian coal production was the largest overall in the third quarter at 22.3 million tons, an increase of 8.3% compared to the prior year.

Employment growth was also led by the Illinois Basin region. Employee counts there increased nearly 15% year over year, followed by Central Appalachia at 10.4%, and Northern Appalachia with 4.4%. Despite producing the smallest tonnage of coal of the three regions in the third quarter with 14.5 million tons, Central Appalachia had the largest number of sector employees at nearly 13,700 people.

The Powder River Basin, located in Wyoming and Montana, saw high quarterly growth in coal production compared to year-over-year progress and middling employment shifts. Coal production in the region grew 13.0% to 68.7 million tons compared to the prior quarter, while increasing less than 1% compared to the third quarter of 2021. Meanwhile, employment in the Powder River Basin expanded 7.6% year over year but declined 2.6% quarter over quarter to roughly 4,900 employees.

The Powder River Basin is home to Peabody Energy Corp.'s North Antelope Rochelle mine, the largest coal operation in the U.S.

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