‘Green jobs’ on the rise – but more work needed to reach 2030 targets

The transformation to a net-zero economy is feeding through to the employment market, accounting for 1.2 per cent of total advertised jobs according to a new study.

But consultancy firm PwC’s Green Jobs Barometer, which launched on Monday, found disparities are already arising in how the transition to greener jobs is affecting different parts of the UK.

The first-of-its-kind analysis tracks movements in green job creation, job loss, carbon intensity of employment, and worker sentiment across regions and sectors.

Currently the proportion of new green jobs is small, but each new green job generates a further 1.4 jobs (rising to six jobs for the energy sector), through increased demand for goods and services in the supply chain.

This figure should also grow as the UK accelerates efforts to transition to net-zero.

Nevertheless, the scale-up will need to intensify to meet Government targets of two million green jobs by 2030.

Moreover, work is needed to ensure the green jobs transition doesn’t exacerbate regional inequalities, the study found.

Yorkshire and the Humber, Northern Ireland and Wales are the lowest ranking regions across all aspects of the Green Jobs Barometer.

Scotland and London are the top performers.

Kevin Ellis, chairman and senior partner at PwC, said: “Jobs are getting greener and this is cause for optimism, but evidence is needed on the level and distribution of these opportunities.

“Left unchecked, green employment will grow in the most fertile spots, but not necessarily where they’re needed most.

“Our research indicates where support and investment needs to be targeted.

“Green jobs in energy, utilities and manufacturing sectors have a greater knock-on effect on employment, generating further jobs.

“Likewise, regions including Northern Ireland and Wales may see a disproportionate rise in green energy and jobs, given their current reliance on carbon intensive fuels.

“By acting now, we have a massive opportunity to rebalance the economy and ensure a fair transition.”

The research highlights workers’ fears about the impact of the net-zero transition, with 5 per cent expecting their job will disappear during the transition, which would equate to 1.7million jobs.

PwC’s analysis suggests this figure is likely higher than the eventual reality, as many jobs will be easily repurposed for a green economy, and will be easily surpassed by new green jobs - creating a net jobs gain.

Some sectors will clearly be impacted by job loss more than others. The sectors with the biggest share of sunset jobs are electricity, gas, utilities and waste.

Regionally, the largest relative impact of job loss will be felt in Scotland and the East Midlands, while the smallest relative impact will be felt in Northern Ireland (although it scores higher in other aspects of the Barometer).

Carl Sizer, head of regions and ESG at PwC, added: “The impact of the netzero transition will be profound and there is a very real risk that people and communities could be left behind.

“The focus shouldn’t just be on the number of jobs at risk, but where they are concentrated, both in terms of industries and communities.

“It is incumbent on all of us to ensure that a reduction in economic opportunity is not the legacy of the green transition.

“Green jobs must not become elite jobs. With targeted policies, investment, and training, and collaboration between government, business and education providers, a green future can be a future of employment for everyone.”

Visit tinyurl.com/33h5wwt7 to view the study.