Job Creation and Local Economic Development 2023

Bridging the Great Green Divide

The green transition is changing jobs, skills, and local economies. It poses new challenges but also opportunities, both of which will differ across places within countries. This report, Job Creation and Local Economic Development 2023: Bridging the Great Green Divide, provides novel evidence on those risks and opportunities across regions in 30 OECD countries. It examines the geography of green-task and polluting jobs and examines the impact of the green transition on gender and socioeconomic inequality by identifying the characteristics of workers in those jobs. Furthermore, the report tracks the progress regions have made in greening their labour market over the past decade. The report provides actionable policy recommendations that can help deliver a green and just transition. It looks at past and other ongoing labour market transitions and identifies local success drivers that can help communities prepare for and manage the impact of the green transition. Finally, it points out actions for ramping up and adapting local skills development systems to meet the demands of the green transition and equip their workforce with the right skills for the future.

Available from March 14, 2023Also available in: French

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Executive summary
The green transition and jobs: what do we know?
The green transition in local labour markets
Learning from past and ongoing transitions
Locally relevant actions for green jobs and skills
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Key Messages

There is a wide variation in the regional distribution of green-task jobs

The share of workers in green jobs ranges from 5% to over 30% across OECD regions, with green jobs often concentrated in capital regions.

The green transition may widen gender gaps in the labour market

More than two-thirds of green jobs (71%) are held by men and less than one-third (29%) by women. There is no gender parity in green jobs in any region across 30 OECD countries.

The green transition could drive economic divergence between regions

On average, regions with lower GDP per capita rely more on polluting jobs. The transition may hit these places hardest, leaving them further behind.