Spotting Green: How to Identify a Greener Labor Market

With the goal of achieving a net-zero economy, there has been a growing focus on identifying the green job demand, which has led to the anticipation of new skills requirements. As the “twin” (green and digital) transition shapes the future of work, identifying green skills and occupations in current vacancies from various sources has become more crucial than ever to close the potential skills mismatches. But, how can we consistently identify green occupations and skills in this rapidly transforming landscape? Are learning providers able to react to the emerging required green jobs requirements?

Recently, discussions around potential employment growth in the European Union have intensified, highlighting that by 2030, around 2.5 million additional jobs could be generated (Cedefop, 2024). The sectors with the most significant expansion are those with high greening potential, including water supply, waste management, and construction. Notably, the electricity sector alone is expected to add nearly 200,000 new jobs by the end of the decade. (Cedefop, 2024). In this sense, the occupational and skills identification are key for educational, training and labour policy decision-making in order to react rapidly to the labor market trends.

As we explore deeper into the identification and measurement of green jobs and skills, certain indicators, such as green pervasiveness and greenness, become relevant. Green pervasiveness measures the ratio of online job ads with at least one green skill to the total number of online job ads, while greenness compares the number of green skills to the total number of skills found in online job ads, defined by Cedefop’s green skills methodology. With these indicators in mind, the demand for green transition-related skills in the EU is the highest in sectors with high climate impact, particularly in energy and water supply and management (Figure 1). In these sectors, 17% and 12% of online job ads, respectively, included at least one green skill in their job ads (Cedefop, 2024).

Figure 1. Average green pervasiveness in high climate impact sectors in EU27

*Source: Cedefop, 2024

In addition to this, we should also consider further developments in Green Occupational Categories, green skills definition and Green Labeling in Occupational Classifications which are crucial for more accurate identification, relevant learning paths, and curricula developed by policymakers and learning providers. For instance, consider ‘green knowledge’ concepts such as emission standards and ecological principles, or ‘green transversal skills,’ like evaluating the environmental impact of personal behavior and adopting practices to boost biodiversity and animal welfare (European Commission, 2022). These examples illustrate the vast amount of information that stakeholders, who are now creating learning content and developing prediction models for skills and job, need to incorporate.

So, how can we best address this challenge?

1. Label Green Skills and Occupations in Taxonomies and Classifications: Incorporate green skills into occupational classifications. A great example is the ESCO's taxonomy, which identifies 381 skills, 185 knowledge concepts, and 5 transversal skills most relevant to a greener labor market (European Commission, 2022).

   
   

2. Leverage Subject Matter Experts' Insights: Utilize insights from SMEs in high climate impact sectors and national markets to provide detailed descriptions of current occupations and tasks, improving identification and adaptation to different sectoral and national contexts.

   
   

3. Implement Machine-Learning Models: Develop and train skills forecast models using real-time data to effectively anticipate labor market needs during the twin transition, ensuring workforce readiness and alignment with emerging green job demands.

   
   

ACTUA contributes to the improvement of skills intelligence and opens the discussion about new trends in education and labour market policies among stakeholders to generate impactful decision-making. Do not hesitate to contact ACTUA for professional services!

By: Juliana Lopez

#twintransition #greenoccupations #greenskills

References:

• Cedefop (2022). An Ally in the Green Transition.

• Cedefop (2023). Skills in transition The way to 2035. Publications Office of the European Union

• Cedefop (2024). Tracking the green transition in labour markets. Using big data to identify the skills that make jobs greener. Policy Brief

• European Commission (2022). Green Skills and Knowledge Concepts: Labelling the ESCO classification.

• The University of Warwick (2022). Green Jobs and the Green Economy in York.