{"id":20030,"date":"2023-10-10T09:37:37","date_gmt":"2023-10-10T09:37:37","guid":{"rendered":"https:\/\/www.adzuna.co.uk\/blog\/?p=20030"},"modified":"2023-10-24T13:44:11","modified_gmt":"2023-10-24T13:44:11","slug":"understanding-green-jobs","status":"publish","type":"post","link":"https:\/\/www.adzuna.co.uk\/blog\/understanding-green-jobs\/","title":{"rendered":"What are green jobs and how can they be supported?"},"content":{"rendered":"

Green jobs are back in the spotlight, but how many green jobs actually are there and how can we support their growth? asks Ben Brindle, Research Economist (Fellow) at IES<\/a>.<\/strong><\/em><\/p>\n

The recent announcement from Labour leader Sir Keir Starmer to introduce a \u201cBritish jobs bonus\u201d should the party win the next general election has thrown the spotlight back onto the transition to climate neutrality, or \u201cnet zero\u201d. <\/span><\/p>\n

The <\/span>scheme<\/span><\/a> \u2013 which will play a key role in meeting their target of producing all electricity from low-carbon sources by 2030 under the proposed <\/span>Green Prosperity Plan<\/span><\/a> \u2013 would pay renewable energy companies up to \u00a32.5bn across five years if they invest in \u201cgood jobs and supply chains\u201d. Labour claim that it could attract up to 65,000 green jobs by 2030.<\/span><\/p>\n

But reaching net zero won\u2019t just impact the energy sector; it will require the decarbonisation of processes across the entire economy, and with it the creation of green jobs. It is therefore worth asking how many green jobs there are in the UK at the moment and what they look like.<\/span><\/p>\n

What is a green job?\u00a0<\/span><\/h2>\n

Before we can think about the prevalence and characteristics of green jobs, we first need to look at how they are defined. There is <\/span>little consensus<\/span><\/a> on the definition of green jobs, which makes comparison of research difficult, but broadly speaking there are two key methods that have been used: the \u201ctop-down\u201d and \u201cbottom-up\u201d approaches.<\/span><\/p>\n

The top-down approach only considers jobs which are directly relevant to the net-zero transition. It is an industry-level analysis that classifies only certain sectors as being green, counting all those employed in these industries as working in green jobs. The Environmental Goods and Services Sector is one such categorisation: Used by the <\/span>ONS<\/span><\/a> and the EU\u2019s <\/span>Eurostat<\/span><\/a>, it comprises industries which typically focus on reducing harmful environmental impacts and in conserving and maintaining natural resources. <\/span><\/p>\n

By contrast, the bottom-up approach designates jobs as green according to their occupation-specific characteristics. This information is derived from databases which detail the task and skill requirements of jobs, such as the US <\/span>O*NET<\/span><\/a>.<\/span><\/p>\n

There are also different approaches to analysing green jobs. While some studies look at vacancies, and therefore focus more on the <\/span>availability<\/span><\/i> of green jobs, others examine occupations, which refer to those jobs actually filled in the economy.<\/span><\/p>\n

\"An<\/p>\n

How many jobs are green?\u00a0<\/span><\/h2>\n

When it comes to jobs advertised, only a small share are green. <\/span><\/p>\n

A top-down analysis of 2021 job adverts by <\/span>Nesta<\/span><\/a> found this figure to be 3%, while only 1.2% (or around 124,600) of adverts listed between July 2020 and June 2021 were classified as green in a <\/span>PwC<\/span><\/a> analysis. Similarly, a study by <\/span>LSE<\/span><\/a> using the bottom-up approach found the that the proportion of green jobs advertised averaged 1.4% between 2012 and 2021 (equating to 490,000 jobs). However, the share advertised actually declined over this period, from 1.8% in 2012 to 1.1% in 2018, before rising to 1.6% in 2021. This decline coincided with the removal of funding for various demand- and supply-side energy schemes from 2012\/13.<\/span><\/p>\n

By contrast, a <\/span>Resolution Foundation<\/span><\/a> analysis of the Labour Force Survey estimated that 13.5% of jobs in the UK labour market can be considered green, although this evaluation \u2013 which relies on the bottom-up approach \u2013 uses a more liberal definition of green jobs.<\/span><\/p>\n

What do green jobs look like?\u00a0<\/span><\/h2>\n

Unsurprisingly, research has generally found green jobs to be more prevalent (relative to their size) in the energy, construction, and manufacturing sectors, while they are less common in the education and health<\/span> sectors. However, when it comes to occupations there is a vast array of job titles, ranging from heating engineers to software developers under the <\/span>top-down approach<\/span><\/a>, and refuse and salvage collectors to large goods vehicle drivers under the <\/span>bottom-up approach<\/span><\/a>.\u00a0<\/span><\/p>\n

Given this, it is perhaps better to consider the types of skills in these occupations. Here a clear pattern develops: green jobs are more skill-intensive than other jobs. <\/span>LSE<\/span><\/a> find that these jobs are more likely to require a range of key skills \u2013 including technical, managerial, social, cognitive, and IT skills \u2013 while the <\/span>Resolution Foundation<\/span><\/a> show that green jobs comprise a greater degree of non-routine analytical personal tasks. Interestingly, these results \u2013 which are mirrored in US studies \u2013 suggest that green jobs are <\/span>at less risk<\/span><\/a> of automation.<\/span><\/p>\n

Green job salaries<\/h3>\n

However, they appear to only have a small wage premium at most. Although a straight comparison of wages between green jobs and other jobs shows that they are better paid \u2013 even after <\/span>controlling<\/span><\/a> for education and experience \u2013 this largely reflects the fact that they tend to be higher skill occupations. But when the <\/span>Centre for Economic Performance<\/span><\/a> examined differences <\/span>within<\/span><\/i> occupations they found only a small wage premium, while <\/span>LSE<\/span><\/a> did not find one at all. In other words, a green finance job might pay better wages than most other jobs, but no better than a non-green finance job.<\/span><\/p>\n

Finally, when it comes to the location of green jobs the answer is dependent on which definition is used. When looking at job adverts under the top-down approach, Scotland, the North West, and the South West are the areas with the <\/span>highest share<\/span><\/a> of green jobs, with roles in Scotland <\/span>linked<\/span><\/a> to the water industry and roles in the South West to waste-based biodiesel and renewables. In contrast, studies which use the bottom-up approach have identified a range of different areas as having highest proportion of green jobs \u2013 from <\/span>Wales<\/span><\/a> to the <\/span>South East<\/span><\/a> \u2013 while one study found they were evenly <\/span>spatially distributed<\/span><\/a>.<\/span><\/p>\n

\"A<\/p>\n

How can policymakers increase the number of green jobs?\u00a0<\/span><\/h2>\n

As discussed above, green jobs form only a small portion of employment in the UK. This begs the question of why are there not more and how can this figure be increased.\u00a0<\/span><\/p>\n

Direct investment<\/h3>\n

One way, as noted by <\/span>Nesta<\/span><\/a>, is for policymakers to increase their availability by directly investing in green projects and infrastructure. <\/span><\/p>\n

The Labour Party\u2019s proposed Green Prosperity Plan is one such intervention: the policy would spend up to \u00a328bn a year to tackle climate change \u2013 an amount which is proportionately <\/span>seven times bigger<\/span><\/a> than the US\u2019s Inflation Reduction Act \u2013 although this has recently been <\/span>scaled back<\/span><\/a>. It also includes a pledge to create a state-owned energy company based in Scotland. <\/span><\/p>\n

Meanwhile the Conservative Party recently announced a number of policies as part of its \u201cGreen Day\u201d, and the Energy Bill \u2013 which looks to fund the development of hydrogen energy, in turn creating <\/span>100,000<\/span><\/a> green jobs by 2050 \u2013 is currently making its way through parliament.<\/span><\/p>\n

Incentivise the private sector<\/h3>\n

But any transition to net zero is likely to also need the mobilisation of the private sector. This presents another opportunity to create green jobs, via decisive signals from policymakers. <\/span><\/p>\n

One such option would be to incentivise employers to create green jobs, which <\/span>Nesta<\/span><\/a> suggest could be implemented by subsidising National Insurance contributions for green jobs, in turn motivating employers to make existing jobs more environmentally friendly. <\/span><\/p>\n

Another would be to re-introduce incentives similar to those in the early 2010s which prompt consumers to make energy-saving changes to their homes, such as the installation of heat pumps. Such schemes would increase the demand for green skills and encourage suppliers to reskill.<\/span><\/p>\n

Lifetime training<\/h3>\n

Related to this, policymakers could support the transition by supporting lifetime training so that the workforce has the skills required in a net zero economy. <\/span><\/p>\n

This reskilling could focus in particular on people working in occupations which directly contribute to climate change and are most likely to be wound down, such as <\/span>coal mining operatives<\/span><\/a>, and on areas which have the highest concentration of emissions-producing jobs, such as <\/span>Barrow-in-Furness<\/span><\/a>. To achieve maximum impact, this area-specific reskilling could be combined with direct interventions that create green jobs in these locations.<\/span><\/p>\n

Conclusions<\/h2>\n

It is clear that there is a long way to go before the UK reaches climate neutrality, but with the net zero target written into law policymakers will need to make huge changes to the country\u2019s economic landscape. Supporting the movement towards green jobs is one such way to ensure that there are opportunities throughout the transition and that public support stays high over the next three decades.<\/span><\/p>\n

Written by Ben Brindle, a Research Economist (Fellow) at IES.<\/i><\/b><\/p>\n

IES<\/a> is an independent, apolitical, international centre of research and consultancy in public employment policy and HR management. It works closely with employers in all sectors, government departments, agencies, professional bodies and associations. IES is a focus of knowledge and practical experience in employment and training policy, the operation of labour markets, and HR planning and development. IES is a not-for-profit organisation.<\/span><\/i><\/p>\n

Want to get data insights to help you make more informed decisions?\u00a0Speak to our Adzuna Intelligence team.<\/a><\/span><\/div>\n
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\"\" Read more: <\/strong>Reviewing regional inequalities in the job market<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Green jobs are back in the spotlight, but how many green jobs actually are there and how can we support their growth? asks Ben Brindle, Research Economist (Fellow) at IES. The recent announcement from Labour leader Sir Keir Starmer to introduce a \u201cBritish jobs bonus\u201d should the party win the next general election has thrown Continued \u00bb<\/a><\/p>\n","protected":false},"author":51,"featured_media":20033,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1168],"tags":[1193],"class_list":["post-20030","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-adzuna-intelligence","tag-market-trends"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/posts\/20030","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/users\/51"}],"replies":[{"embeddable":true,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=20030"}],"version-history":[{"count":4,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/posts\/20030\/revisions"}],"predecessor-version":[{"id":20048,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/posts\/20030\/revisions\/20048"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/media\/20033"}],"wp:attachment":[{"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=20030"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=20030"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=20030"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}