This study investigates the net impacts of the transformation from traditional energy generation to renewable energy generation on unemployment in developed countries. In this context, a panel data framework is used to analyze the long-run coefficients and causal relationships for the period of 1990-2021. The long-run results show that increases in renewable energy generation have a reducing effect on unemployment only in Denmark. On the other hand, Germany, Spain, the United Kingdom, and France’s results indicate the opposite. Our findings decide the determinants of rising renewable energy generation and take into account its effects on unemployment.