Labour Market and Social Implications of the Green Transition

Eine Frau und ein Mann stehen mit dem Rücken zur Kamera. Sie tragen orangene Warnwesten und weiße Schutzhelme. Im Hintergrund ist ein Tagebau zu sehen. Bildquelle: Shutterstock/Mark Agnor, Asset-ID 646064452

The transition to a carbon-neutral economy could hit many employees in polluting industries. People in these industries often have long tenures and a very specific job profile. As an OECD analysis shows, these workers often have particularly long and significant income losses when they lose their jobs. To ensure a socially fair green transformation, minimizing the adjustment costs and protecting those most affected are key. This requires policies facilitating job mobility, such as training and better adult education opportunities.

In our webinar on 7 November 2023, an expert panel discussed how labour market policy measures can help to reduce scarring effects for workers losing jobs and support the green transition.

Zeev Krill, Alexander Hijzen and Cesar Barreto (OECD) presented insights on the cost of job loss in carbon-intensive sectors in Germany. Then followed a discussion with Gonzalo Carlos Caprirolo Cattoretti (Ministry of Labour, Family, Social Affairs and Equal Opportunities, Slovenia), Anna Daimler ( vida, Austria), Markus Janser (IAB, Germany) and Javier Sánchez-Reaza (World Bank). The event was moderated by Nicola Brandt (OECD).



Further readings:

The cost of job loss in carbon-intensive sectors: Evidence from Germany. OECD Economics Department Working Papers No. 1774 (13 November 2023)

Doing Green Things: Skills, Reallocation and the Green Transformation. Economics Department Working Papers No. 1763 (5 July 2023)

Job Creation and Local Economic Development 2023: Bridging the Great Green Divide. OECD report (14 March 2023)

The Possible Implications of the Green Transition for the EU Labour Market. European Commission Discussion Paper 176 (December 2022)

Promoting a just and inclusive green transition. Joint ILO-OECD background paper prepared for the German G7 Presidency (November 2022)

From Polluting to Green Jobs: A Seamless Transition in the U.S.? IMF Working Papers, 2022 (129), A001 (1 July 2022)