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Net zero and the labour market: evidence from the UK

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  • Valero, Anna

Abstract

The urgent need for tackling climate change brings with it the need to understand the impacts of net zero policies on the labour market. Various approaches have been taken in attempts to measure and describe green jobs, and compare them to their non-green counterparts. This essay focuses on the UK and summarises findings from an occupational approach, which classifies jobs as being green when they involve new tasks or skills required by the transition to net zero, or when they are likely to see increased demand due to the transition. Drawing on this analysis, and other complementary approaches, this essay sets out evidence that green jobs have the potential to be good jobs, requiring higher skills and paying well. However, they have not been accessible to all workers to date. In the next phase of the transition, net zero is expected to be a net creator of jobs. Overall, this is largely a story of change in existing jobs and sectors–very few jobs will be phased out. The transition and its impacts on the labour market will be difficult in specific sectors and places, requiring targeted programmes and broader skills policies to ensure that net zero can not only be delivered, but delivered in an inclusive way.

Suggested Citation

  • Valero, Anna, 2024. "Net zero and the labour market: evidence from the UK," LSE Research Online Documents on Economics 122227, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:122227
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    File URL: http://eprints.lse.ac.uk/122227/
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    References listed on IDEAS

    as
    1. Pia Andres & Giorgia Cecchinato & Penny Mealy & Charlotte Taylor & Sam Unsworth & Anna Valero, 2020. "Jobs for a strong and sustainable recovery from Covid-19," CEP Covid-19 Analyses cepcovid-19-010, Centre for Economic Performance, LSE.
    2. Pia Andres & Ralf Martin & Penny Mealy & Esin Serin & Arjun Shah & Anna Valero, 2021. "Seizing sustainable growth opportunities from carbon capture, usage and storage in the UK," CEP Reports 38, Centre for Economic Performance, LSE.
    3. Nicholas Stern & Anna Valero, 2021. "Innovation, growth and the transition to net-zero emissions," CEP Discussion Papers dp1773, Centre for Economic Performance, LSE.
    4. Pia Andres & Ralf Martin & Esin Serin & Arjun Shah & Anna Valero, 2023. "Seizing sustainable growth opportunities from tidal stream energy in the UK," CEP Reports 40, Centre for Economic Performance, LSE.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    green skills; net zero; green jobs; ES/T014431/1; ES/V009478/1; ES/W010356/1; This article draws on research funded on a number of grants; including from Candriam Institute for Sustainable Development for LSE research on green jobs and the Nuffield Foundation for Economy 2030 Inquiry work on green jobs.;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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