Slow pace in race to reach net zero and green the economy

There has been almost zero progress in creating green jobs across the OECD for a decade

Despite the attention to climate change in the public discourse, local labour markets have not become much greener. The share of workers in green-task jobs grew just 2 percentage points across 30 OECD countries over the last decade –from 16% in 2011, to 18% in 2021, with significant

Positive momentum for green job creation seems to be growing

Encouragingly, positive momentum has been growing for the greening of local labour markets. Recent labour demand for green-task jobs has been rising faster than labour market demand overall as firms increasingly seek green talent, i.e. workers that have green skills. Since the start of the pandemic, growth in the demand for green-task jobs has outpaced overall labour market differences within countries. Across OECD regions, the change in the share of green-task jobs ranged from 10 percentage point increases to 7 percentage point decreases. Without urgent action on skills, the green transition could deepen inequalities and threaten progress towards 2050 net-zero goals. demand by almost 30 percentage points. The share of green vacancies is higher while the share of polluting vacancies is lower compared to the current employment shares, which may be signs of a shift towards a more environmentally friendly labour market.

However, not all places record such positive momentum for green jobs. The growth in the demand for green jobs is highly uneven across OECD regions. It rose in roughly two-thirds of regions (68%), though the change ranged from a 7 percentage points decrease in Basilicata, Italy to a 11-percentage point increase in Southern Denmark. Supported by a fast “greening” of labour demand, regions such as Southern Denmark and Central Jutland may be on track to join the group of regions with the highest share of green-task jobs in the OECD.

Few regions that are lagging behind show signs of catching up. Regions with a low share of greentask employment, such as Asturias, Sardinia and Basilicata, are at risk of falling further behind with the demand for green-task jobs faltering over the last two years. Yet there are notable exceptions. In particular, the regions of Attica and Thessaly in Greece, have a below average share of green-task jobs but have experienced a significant increase in the share of green-task vacancies in total demand, 5 and 3 percentage points respectively.

The green transition will not succeed without a sufficient number of workers with the necessary skills. Firms across the OECD report labour and skills shortages, in particular for green jobs. Giving workers of all educational backgrounds,and skill levels, regardless of gender, the opportunity to develop green skills must be a priority.