Climate change is poised to transform workforce demand. The latest Future of Jobs report by the World Economic Forum indicates that climate change is expected to be a leading force in the labor market over the next 5 years, as companies seek to mitigate their environmental footprint and adapt to changing global ecological conditions.
Why It Matters
Job Growth: In an otherwise contracting job market dominated by layoffs, climate change jobs are in high demand as climate change adaptation is expected to be the third-greatest driver of growth in global jobs by 2030.
Skill Shortage: While green skills in the global workforce increased by 12% from 2022 to 2023, employer demand has eclipsed the supply as job postings requiring green skills increased by 22%.
Strategic Alignment: Companies have placed a growing emphasis on environmental sustainability in their operations, with carbon reduction and clean energy generation arising as key priorities in business operations.
Details
Climate change is expected to drive job growth in two core related areas, adaptation and mitigation.
As the effects of global warming begin to materialize, business operations are tangibly impacted, often leading to unexpected costs or inefficiencies. Thus, investment in climate adaptation is at an all-time high and is projected to be the third-largest contributor to global job growth, creating a 5 million new jobs. 41% of employers surveyed expect adjustment to the effects of climate change to be a key focus of their field by 2030.
Similarly, companies are under immense pressure to reduce their own contributions as consumer awareness and government regulations are pushing companies to go green. This has led to a hiring surge in climate roles to help corporations reduce their environmental impact; climate mitigation is expected to be the sixth-largest global contributor to job growth, leading to a projected 3 million new jobs. Of those surveyed, 47% expect reducing their carbon contributions to play a major role in their operations moving forward.
These trends have led Environmental Engineers and Renewable Energy Engineers into the top 15 jobs with the highest projected growth. “Green hiring” is already well underway, having outpaced general market hiring trends in recent years, with employment in these positions projected to skyrocket in coming years.
The market is unprepared to meet this demand though as climate-focused job postings outpaced green skills development by 10% in 2022. As labor market demand continues to increase, this skills shortage will only continue to increase, creating both a lucrative opportunity for prospective workers and a potential problem for environmental sustainability.
This labor market outlook is indicative of a larger belief held by companies: climate change is here, and we can’t ignore it. Corporations have begun the process of integrating sustainability as a core focus into long-term strategy, in the energy they use, the way they operate, and who they’re hiring. While sustainability is thriving field, it’s important to understand the reason it’s such a priority. Without proper investment in sustainability training, companies will not be able to adequately adapt to the changing environment and limit their own impacts, so businesses must look towards investing in green skills.
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